The Economic Times daily newspaper is available online now.

    Auto should be one of the outperforming sectors in the near term: Sandip Sabharwal

    Synopsis

    ​Obviously, given the way most commodities have stabilised and also fallen so drastically, you will see many of the consumer names also do well. And as far as I think you were talking about the auto sales numbers, I think they have been pretty decent. So I think most of the frontline auto companies look pretty well placed. So I guess that should be one of the outperforming sectors.

    sandip-sabharwalAgencies
    Real estate is an interesting space where the demand held up right through the interest rate hike cycle and most of the companies are still talking of very strong demand.
    "See broadly, I think a phenomenon where after interest rates tend to peak out, the broader markets tend to outperform that has started to play out now. So I think bigger opportunities over the next year or so could come on the midcap side of the market broadly," says Sandip Sabharwal, asksandipsabharwal.com.

    How you are reading into the move on the frontline index in comparison to the broader markets. Is there anything that you are spotting in specific by way of an exciting opportunity right now in the market?
    See broadly, I think a phenomenon where after interest rates tend to peak out, the broader markets tend to outperform that has started to play out now. So I think bigger opportunities over the next year or so could come on the midcap side of the market broadly.

    Obviously, given the way most commodities have stabilised and also fallen so drastically, you will see many of the consumer names also do well. And as far as I think you were talking about the auto sales numbers, I think they have been pretty decent. So I think most of the frontline auto companies look pretty well placed. So I guess that should be one of the outperforming sectors.

    Unlock Leadership Excellence with a Range of CXO Courses

    Offering CollegeCourseWebsite
    IIM LucknowIIML Chief Executive Officer ProgrammeVisit
    Indian School of BusinessISB Chief Technology OfficerVisit
    Indian School of BusinessISB Chief Digital OfficerVisit


    If you had to just take a call on any of these names, Apollo Hospitals, Sobha, RBL Bank, would you be able to help us with a top pick amongst these three?
    Not really. Apollo Hospitals, I think it is pretty overvalued at this price. So although the management commentary might be positive, but I believe that is largely factored in so I do not see much upside. So among these three that is the only one I am tracking.

    What is happening with Westlife Development? Do you track this one?
    Yes, Westlife is a stock which I like and I believe the company is doing well. In fact, from most of the companies on the QSR space who delivered earnings only a few stood out. So I think Westlife stood out and they delivered reasonably healthy numbers. And overall that is what I was saying in the earlier commentary that as inflation ebbs and I have been talking to a lot of management, as inflation is ebbing, many of the consumer companies has started to see some uptick in demand. And I believe that demand will become stronger as we go through towards the end of the year. So I think many of these companies should continue to do well.


    Where does the opportunity arise when it comes to the entire real estate basket?
    Real estate is an interesting space where the demand held up right through the interest rate hike cycle and most of the companies are still talking of very strong demand. To that extent, it should continue to have outperformers. So I believe DLF is pretty well placed. Post results and post the RBI rate hike pause, we have already seen the stock move up by around 25%. So it is possible that it consolidates for some time and then it could do well again.




    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in