Jitendra Gohil, Head of India Equity Research at Credit Suisse Wealth Management, expects the banking sector to see a cyclical recovery.
He said, "We have a positive view on the banking sector and the large private banks. I think banking sector will see kind of a nice cyclical recovery. The loan growth is still in mid-single digit and I think as we grow our economy, the loan growth will pick-up substantially from here onwards and we expect that growth to be at least in higher single to low double digit kind of a growth on a sustainable basis."
"So we remain very positive on private sector banks as well as the corporate sector banks."
Speaking on metals, he said, "We do believe that this recovery is a cyclically driven recovery. Infrastructure driven development is happening at a faster pace, government is going to spend on infrastructure and that is one of the key reasons that the demand domestically is going to be strong for steel companies. In cement as well the demand momentum is picking up."
"There are lot of companies who are talking about increasing capacities. However in the metals sector I would look at the balancesheet and then take a call. I feel that iron ore segment is looking very good to us and we believe that the stocks that are exposed to iron ore can do extremely well."
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