Stock market guru Prakash Diwan spoke to CNBC-TV18 on what is moving the markets today. He shared his views on capital goods and cement sectors, stocks like Balaji Telefilms, Interglobe Aviation and Hindustan Construction Company (HCC).
“I am avoiding the capital goods sector because there is too much of a consensus trade. Capital goods emerged as the favoured sector for 2019 and my sense is that till the election outcome is out of the way, it is going to be difficult for private sector companies to expand and start spending on capex.”
“Autos will continue to struggle particularly the four-wheelers and the commercial vehicles. The sector that seem promising is cement and the way things are poised; the raw material cost, volume uptick, all of that seems to be in favour,” said Diwan.
According to Diwan, "2019 will be a good year for midcaps because valuations are absolutely not in rich zone for quite a few good business that look promising."