The bank that will cut rates now is going to be the biggest beneficiary, and since the SBI chairman has said he is considering repo rate-linked rates for borrowers, it will be a better bet than ICICI Bank, says Deepak Shenoy of Capitalmind.in.
In an interview to CNBC-TV18, the market guru shared his reading and outlook on specific stocks and sectors. "Considering ICICI Bank and SBI, the former is a bit further up in the cycle in terms of recovery. If both of them were to do the same thing in terms of rates, then ICICI is a better bet. As a disclosure I have one share of each, so my bias is equally spread across there," he said.
On FMCG he said: "We are looking at Bata. We have some investments in Bata and in Godrej Consumer, although Godrej is a bit of a laggard. However the view at least on Bata has been that their competition has withered away. So, many of the other companies like Liberty haven't seen that growth. This is usually one of their best quarters as this is the school-going quarter. People change shoes or buy new shoes for the kids more often now. I think some of the more well-priced FMCG companies may actually be a better buy, so I wouldn't go to HUL or P&G just yet but others like Marico and Dabur are looking interesting though prices are still high. So I would not say buy right now, but wait a quarter to see if this sustains."
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