Highly bullish on mining space; CIL, NMDC, GMDC top picks: Harendra Kumar

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital, shares his views on mining.

ET Now: Are you bullish on the mining space at large?

Harendra Kumar: Yes absolutely. What the street has to clearly figure out is that the goal post by Mr. Modi has been clearly laid out for the next five years, which is smart cities, Jan-Dhan, Swachh Bharat, coal mining and defence. If you are going to look at areas beyond this, you will be a little disappointed. What Coal Secretary is speaking about Coal India, the confidence that the coal output will be doubled will itself make a nice Nifty stock in giving you secular returns. There is a whole set of tag which is NMDC, GMDC plus some of the private names that we have just discussed. The mining sector has clearly been identified by the government in terms of employment generation, IIP and contribution towards GDP. So this early start into the first nine months is a big positive. So yes, mining stocks or stocks that are actually languishing now will see a fillip and they could be good potential bets for the next three years.