Capital goods going to be a great bet: Avinash Gorakssakar

In a chat with ET Now, Avinash Gorakssakar, Head of Research, Miintdirect.com, shares his views on the capital goods space.

ET Now: In terms of sector allocation among the large caps, what is it that you are pushing for these levels despite the run-up in the market right now? Your top three ideas that are high conviction?

Avinash Gorakssakar: We would like to put our bets on something like may be an IRB infra, typically a Thermax from the capital good space. In fact from the large cap capital goods space, we still continue to like Larsen & Toubro. I would presume that even if there is a mild correction going forward, typically once the event is over capital goods as a sector is going to be one of the key beneficiaries of the new government.

This is one area where the sector had been beaten down for a long time. The only caveat is that the rate cuts which possibly the market is expecting will take a little longer. Otherwise, in terms of order book and in terms of the kind of growth trajectory, the capital goods space is something which we have been advising our clients to pick up on every decline.