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Bullish on domestic cyclicals; valuations of PSUs attractive, says Enam’s Sridhar Sivaram

Updated : February 10, 2021 11:32:50 IST

The Indian market has potential for a further upside hereon while after the Union Budget 2021, the domestic cyclicals will perform well, said Sridhar Sivaram, Investment Director of Enam Holdings.

Speaking to CNBC-TV18, Sivaram he said, “My bias would be towards domestic cyclicals like corporate and non-corporate banks, public sector undertaking (PSU) banks. We are quite bullish on the PSU banks and not so much on the NBFC but banks are looking far better right now.”

Sivaram said he holds a positive stance on metal space and remain optimistic on both ferrous and non-ferrous space.

However, he remains cautious on auto stocks post the recent rally and believes that the global supply chain disruption is likely to hurt auto companies in the near future.

“The auto sector has rallied a lot so one has to be slightly cautious. There are serious global supply chain disruptions and until this is not restored, we could see a pause in the auto sector. At this stage, the ancillaries look slightly better than the original equipment manufacturers (OEMs), but I wouldn’t be adding too much of auto right now,” he said.

Sivaram is bullish on the real estate sector but is wary of the pedigree of some companies.

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