Private sector banks, infra names to be major beneficiaries: Jonathan Bell, Nomura Asset Management

NEW DELHI: The day interest rate-sensitive counters across the board welcomed the Reserve Bank of India's move to cut policy rate by 25 basis points, Jonathan Bell, who heads emerging market equities at Nomura Asset Management, said that he prefers private banking names among the financial space. The expert said he also likes infrastructure names.

The BSE bankex surged by over 1.3 per cent in intraday trade and none of the stocks from the index were in the red. Interestingly, stocks such as Axis Bank, Federal Bank and IndusInd Bank, which led the rally in the recent days, were seen underperforming PSU banks which surged as much as 3 per cent.

Bell in an interview to ET Now said, "In general we have had a preference for the private sector banks and again India has a very favourable backdrop of sensible fiscal policy and sound monetary policy right now."

Over the long term, the key trigger for Indian financial sector will be the transfer from physical assets into productive financial assets. This is a opportunity that just beginning to take off now," he added,



The expert believes that the lowering of subsidies and increase excise duties on petrol, diesel is positive for India, adding that it has contributed to nearly $20 billion to the overall Indian budget.

The money can be re-directed into infrastructure, he believes.

"So infrastructure and infrastructure-related names may be the ultimate beneficiaries."