Amit Shah, head of equity research at BNP Paribas India, expects private banks, IT and auto stocks to outperform.
He said, "Private banks make a very strong case for themselves because you see improving NIMs as well as lower credit cost. The overall restructured book is less than 100 basis points for the large banks. So private banks remains a great place to be in. The next sector is IT - the deal wins kind of leads us to believe that the IT sector will perform well in terms of revenue growth once again for FY22 and the recovery would be largely led by Americas."
Shah said he prefers passenger and commercial vehicle stocks in the auto sector. However, he recommended investors to avoid the two wheeler space.
"We believe that the passenger vehicle space as well as the CV cycle should continue to remain strong but two wheeler space is something that we would like to avoid."
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