BNP Paribas positive on globally-exposed auto stocks, Manishi Raychaudhuri, Asian equity strategist, equity cash Asia Pacific, told CNBC-TV18.
“We are quite positive on the globally exposed auto stocks. There is a degree of consumption recovery that we are seeing outside India - particularly in the developed markets, and the majority of the companies have exposure to those markets. So, the market’s bullishness on globally exposed auto stocks is likely to continue for some more time,” Raychaudhuri said.
On NBFCs, he said, “The only non-banking financial companies (NBFCs) that we have in our India allocation of the model portfolio are housing finance companies. There has been a bit of a revival in the real estate sector, and we are playing the property sector through housing finance companies (HFCs), the top rung, largecap, frontline HFCs. Apart from that, we are a little cautious about the retail-lending NBFCs.”
“In the banking space, we are predominantly focused on largecap frontline private sector banks. As a consequence of what we are seeing today, over the medium-term, they would gain market share at an accelerated pace than what was happening earlier. Therefore, from asset quality angle and from market share angle, these are the banks that investors should focus on over a longer-term,” he said.
For the entire interview, watch the video.