Be stock specific while investing in cyclicals: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, VP-Institution, Angel Broking, shares his views on the markets. Excerpts:

ET Now: The key standout feature for this week's price action is the way cyclicals have made a comeback. Is that impressive and is that here to stay?

Mayuresh Joshi: Clearly, the cyclical movement we have witnessed over the past few quarters is very volatile and it depends upon a lot of factors apart from fundamentals. So clearly, one needs to be really careful and stock specific when it comes to cyclicals and specifically the real estate pack or to a certain extent, any of the cyclicals which get affected; which is infrastructure and capital goods that are dependent on the interest rate movements.

So in that sense itself when the rally will sustain within these sectors, it is a little bit difficult to say at this point of time because we have already missed a huge amount of price action happening and even in terms of valuations, our belief is that they have hit the peak valuations at least from an FY15 perspective. So really what the markets would ideally watch out for within these sectors is how the order momentum flows through and how cash flows go through financial statements which looks very likely over the next two to three quarters. So our belief is that one should adopt a very stock specific approach when it really comes down to interest rate sensitives and cyclicals in general.