Avoid capital goods, auto ancillary stocks: Prashasta Seth, IIFL Wealth

In a chat with ET Now, Prashasta Seth, IIFL Wealth, shares his views on Capital goods stocks and auto stocks.

ET Now: I just want your perspective on some of the cap good stories, they have gone completely off the radar, what is the call on BHEL and L&T right now?

Prashasta Seth: It is an avoid. It is an avoid till elections. Our sense is that there is no chance of capex cycle being revived before elections or mid of 2014 at the earliest so if that is the case I would definitely avoid all the capital goods names.

ET Now: What about auto ancillaries?

Prashasta Seth: So again I would avoid. The space what I like in autos is two wheelers and I would much rather buy a Bajaj Auto which will benefit from currency depreciation rather than anything else.

Even the fact that the domestic monsoons have been good and domestic demand could potentially improve from where we are at this point of time, I would be a holder of Bajaj Auto and possibly Hero, those are the two names that we hold and will continue to hold in our portfolios.