UR Bhat, director at Dalton Capital Advisors, spoke to CNBC-TV18 about the current trends in the stocks markets and weak rupee.
Speaking about the rupee, Bhat said, “Before the slide started, I think most economist had agreed that on a real effective exchange rate (REER) basis the rupee should be somewhere between 72-73 per dollar. It has reached that, so, I think, exporters, whatever problem they had earlier, this exchange rate more or less addresses that. Therefore I expect that there will be some confidence at these levels and probably RBI will also play its part and ensure that it does not slide too much from here unless of course oil prices go up dramatically higher from here.”
Speaking about the aviation sector, Bhat said, “The issue with aviation stocks is that they really do not have pricing power. There is so much competition, they do not have pricing power. They are not able to pass on the all these oil price hikes. Therefore they are not in a great place to be in, this is not the place where one should be invested.”
“Domestically consumer oriented sectors, to some extent autos, to some extent non-PSU bank financials, industrials because industrial activity is picking up, these are the sectors one needs to be in if one needs to be in equities,” Bhat added.
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.