Financial space to perform well over the next 12 months: Arvind Sanger, Geosphere Capital Management

In a chat with ET Now, Arvind Sanger, Managing Partner, Geosphere Capital Management, shares his views on markets. Excerpts:

ET Now: From one year timeframe, what is that big tactical conviction bull idea that you may have, stock wise or sectorally, something that you are bearing big on from these levels?

Arvind Sanger: One of the things we like is the financial space. It is a broad based bet on the recovery. Now clearly, there was a lot of chalk and cheese in this financial sector between companies that still saw NPA situation getting worse and those have seemed to have turned the corner so there has been a bit of a disappointment there but I would argue that even for the companies that saw disappointingly widening of NPAs, the cycle is close to the trough.

We are making right kind of investing in India. Over the next 12 months, if there is going to be lot of tailwinds and some of these headwinds will disappear, then both in the NBFC and in the bank space, there are opportunities if you want to be really brave, you can go after the PSU banks.

We have not been quite that brave yet and frankly we managed to therefore dodge few bullets amongst some of the PSUs. Over the next 12 months, there is going to be opportunities in the financial space.