Expect order growth on industrials' space to remain dull in FY'14: Tirthankar Patnaik, Religare Capital Markets

In a chat with ET Now, Tirthankar Patnaik of Religare Capital Markets, shares his views on the current outlook of Industrial sector. Excerpts:

ET Now: How exactly do you propose investors should approach a stock like BHEL or L&T?

Tirthankar Patnaik: We should maintain a negative view on industrials even going forward. That links up to our core thesis of macro weakness.

We expect industrial GDP this year to move up only about 1.5 per cent. While July IIP and August core industry numbers are showing some signs of a bottoming out in the sector, order growth, which is the key driver for a large player in the stocks like BHEL, is likely to remain lacklustre in FY'14.

So this is a place where we should be cashing out and from a portfolio perspective, we remain very negative on the industrials space.

L&T is the only stock that we will look at to own in this space.