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Kotak Securities: Banks, IT better stories to play; avoid telecom

Updated : January 29, 2019 12:54 PM IST

Kamlesh Rao, managing director of Kotak Securities, said, in the financial services industry, it is better to be with corporate banks as the benefits from the NPA resolution would seek more fruit. According to him, bulk of the bad news for banks like ICICI Bank and Axis Bank seems to have been factored in. Therefore, one could give them look post a quarter or two, he added.

However, Rao said his brokerage house is watchful of non-banking financial companies (NBFCs) that have exposure to critical companies or sectors. The equation for the NBFCs have got disrupted, which was basically on back of disbursements being on track and lower rates.

He further added that one can also look at insurance companies for the pricing and valuations they have for the size of AUMs that they manage.

Stay away from telecom companies as the spread equation and revenue equation is not clear, noted Rao. Consumption and IT are better stories and safer havens, especially in these times of volatility, he added.
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