Capital goods, banking and financial services names look attractive: Arindam Ghosh

In a chat with ET Now, Arindam Ghosh of BlackRidge Capital Advisors shares his views on the exporter-let sector and how the market is expected to perform.

ET Now: Should an investor align with momentum which is cyclicals or is it time to be a contra buyer in exporters like IT and pharma?

Arindam Ghosh: The momentum for the Indian market in the run up to the big event is quite strong. The market is divided, but the division would be on the basis of whether you are trading into this market or investing into the market.

Now, the poll outcome from India's point of view is going to be extremely critical as the economy tries to recover from the stagflation type of environment.

We have a situation where the domestic demand may get revived, but the interim lifeline will still continue to come from exports. From an investment point of view, every dip in some of the export-led sectors should be used as a buying opportunity.

At the same time, you need to start building up on the capital goods and domestic cyclials.

ET Now: Are you buying into cyclicals with the assumptions that before election Nifty could go to 7000?

Arindam Ghosh: We are very constructive in terms of certain sectors. The beaten down sectors of the banking and financial services, capital goods are all looking extremely attractive.

I would like to qualify that the process of economic healing takes time and repair of corporate, institutional and individual balance sheets will take time. So, whilst that keeps happening, the export sector would continue to provide the lifeline.

We have a situation where domestic demand and recovery is still probably some distance away, but export will have to provide that buffer and cushion. One needs to have a constructive, very balanced and well-calibrated portfolio, and dynamically keep adjusting and readjusting based on how the recovery shapes up.