Nilesh Shah, managing director of Kotak Mahindra AMC, has advised that investors should focus on telecom companies "where we can predict cash flow". "I do not want to put my investors’ money at a risk," he said in an interview with CNBC-TV18.
“By and large, over the last 5 years, we have remained underweight on the telecom sector and that has worked well for us. We continue to evaluate telecom sector but what we need is policy stability where I can have some ability to predict what will be the future cash flow from the companies in which I am investing,” Shah added.
According to Shah, earnings recovery in Q3 and Q4 will support the market going forward. He also said that the Essar Steel judgement is positive for the banking sector.
About the real estate sector, Shah said, “There are a couple of trends which are materialising in the sector... a lot of the builders who were taking the consumer for a ride are slowly and steadily going away... some of the weaker hands have moved out of this sector, which is very positive for stronger hands.”