After Indian stock markets opened marginally higher in new fiscal year, ace investor Porinju Veliyath says that the stage is set for higher earnings growth and better numbers in the quarter. We take a look at his top stock picks.
After Indian stock markets opened marginally higher in new fiscal year, ace investor Porinju Veliyath said that the stage is set for higher earnings growth and better numbers in the quarter. In an interview to ET Now, Porinju said that the theme of shift of unorganised to organised remains relevant going forward.
Sharing his expectations from the markets, Porinju said, “Well managed private sector banks with low NPAs will do well, there are a lot of things to look forward to. Uday Kotak was saying recently about the private sector banks slated to gain up to 50% market share in the coming months. It has a lot of implication on well run midcap private sector banks. But, not all is cheap, investors will have to pick the stocks carefully.”
According to Porinju, amateur investors must be careful in picking stocks, as valuations may not be cheap. “It’s not going to be as easy to make wealth in the past especially in the small and midcap space. Stock selection will become increasingly important. At the same time, investors must not fully abandon the markets just because we had a correction or downturn in the stock markets,” he told the channel.
Further, Porinju noted that in spite of all the recent troubles, markets have come up and wealth has been created. Coming to specific stock picks, the ace investor is bullish on the consumption theme. Porinju Veliyath said that companies like IDFC Bank and Capital First are safe and interesting ideas in the financials theme.
Apart from financials at large, Porinju says that insurance sector in India looks attractive given under-penetration. HDFC Standard Life Insurance, Bajaj Finserv are safe bets, he said. Talking about stocks which may help the investors to compound their wealth, Porinju pointed out that stocks such as Godrej Industries, Tata Global, Godrej Agrovet have attractive potential for investors.