Gautam Trivedi, Co-Founder & Managing Partner of Nepean Capital believes that PSU banks have more upside left.
“The banks have for the most part surprised – in fact even some of the PSUs have done pretty well. So, assuming that this is not just a one quarter phenomenon, you will see an improvement,” he said in an interview to CNBC-TV18.
Trivedi said that the business model of multiplex stocks like PVR and Inox is under threat. “I think some of the habits of the COVID period are actually here to stay in terms of the way humans tend to behave if there is a certain change in circumstances. So, unless there is a blockbuster like Star Wars or maybe an Akshay Kumar movie, there has been a fundamental shift away from the movie theatre exhibitor business,” he said.
Trivedi believes that stamp duty cut by Maharashtra has brought back interest in Mumbai realty space. “Small tweaks like that can have a major impact,” he said.
Trivedi added that he prefers Asian Paints over Berger Paints. On the pharmaceutical side, he believes diagnostic companies to continue to do well.
He said that economic data has been improving as seen from good auto sales, and higher GST collections.
“If you look at the economic environment anywhere across the country, you are seeing a series of positive numbers coming through. You have seen the October manufacturing PMI which is a 10-year high, you have seen the services PMI which has done extremely well, GST collections for October has crossed Rs 1 lakh crore, auto sales are flying off the charts. So you are seeing a definitive improvement in the underlying economy and as a result I believe that rally in the banks which in turn of course reflects the underlying economy will continue,” he said.