Expert Saurabh Mukherjea Advises, Opt for auto, private banks
Saurabh Mukherjea from Marcellus Investment Managers shared his views, suggestions, and spoke about the RBI’s remarkable credit policy in an interview with CNBC-TV18. He said RBI took brave steps in the policy.
He also added that RBI has declared an exceptional credit policy previous week. I think the move is certainly out of the box. Even there are widespread inflationary pressures, the RBI governor clearly saying that RBI will do whatever it takes to bring the banking system and credit growth out of the funk.
Saurabh Mukherjea further added that I have had conversations with the lenders for the last two-three days. The lenders recommend that there is a very high probability that the RBI credit policy will bring about a revival in credit disbursal. If that happens given how difficult credit conditions have been in the last seven months, I reckon we are looking at a considerable economic recovery in the next 12 months.
What would you bet on whether real estate, NBFC or Car companies? Saurabh Mukherjea
Saurabh Mukherjea from Marcellus Investment Managers said “some of the private sector banks which haven’t yet seen the benefits of a potential recovery so I select Axis Bank and DCB Bank. The DCB Bank hasn’t really seen any sort of recovery. I believe that Axis Bank hopefully participates in credit recovery. And the other sector I think one can look at is the auto sector. We had Eicher motors in the portfolio for five to six months.”
If you are a risk-taking you may also opt for Ashok Leyland. The stock is likely to be a good one on economic recovery. Except for the huge fallout for Coronavirus, there are signs that signalling the economy is moving towards a recovery in the next fiscal, he added.
He suggested the people that not to look at the high beta names from real estate, steel, construction. Later he specified that the general insurance sector is a very good sector with great long-term opportunities. In paints segment, he has chosen Asian Paints, Berger Paints and Pidilite Industries.