Sandeep J Shah of Motilal Oswal Private Wealth Management, in an interview with CNBC-TV18, shared his views on the outlook for the market and various sectors.
On financials, Shah said he was not surprised by the numbers from HDFC Bank, Bajaj Finance because we all know that there were different lockdowns for different time frames, so do not surprise by the asset quality, which has caught everybody’s attention. Some of the big names that announced their numbers have a reputation and have processes in place to ensure very good asset quality.
If one were to peer into the future, while third wave seems to have begun in different parts of the world but the latest sero survey says a significant number of population already have antibodies. “To that extent, I would use dips in large private banks, in large NBFCs, and perhaps the largest PSU banks as well as buying opportunities.”
“What is likely to happen this quarter is that, overall, for the PSU banks is that you are going to see while pre-provision, operating profit growth may not be significant but you might see a big jump, going forward, in terms of post-tax profits, even for PSU banks starting this quarter and accelerating for the others.”
Shah said he was positive on quality financials, and nothing to be worried by these numbers. Analysts underestimated the impact the lockdown would have, he added.
On cement space, he said overall cement stocks should be a good proxy on the economic recovery.For the entire interview, watch the video