Ajay Bodke of Prabhudas Lilladher is expecting two interest rate cuts of 0.25 percentage points each by the Reserve Bank of India (RBI) in the next six months. He is also expecting a change of stance to neutral.
In an interview to CNBC-TV18, Bodke shared his views on the fundamentals of the market.
“The new RBI governor in place who is more accommodative to the concerns of the economy and willing to look at opening the taps for credit constrained sectors like NBFCs and MSME, I think interest rate sensitive sectors are what we are betting on,” said Bodke.
Bodke is positive on sectors such as BFSI, automobiles, and consumer durables.
“We are advising clients that sectors such as BFSI, automobiles, and consumer durables are the ones that they should look at more constructively because they will be the beneficiaries of the tailwinds from the fall in interest rates as well as more liquidity made available to sectors such as banking and NBFCs.”
One needs to trade carefully in IT, warns Bodke. He said, “One needs to be equal weight but certainly the necessity to go overweight at the current juncture in IT is fraught with some risk.”
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