I am very bullish in terms of the macro outlook over the next couple of years: Nirav Sheth

In a chat with ET Now, Nirav Sheth of Edelweiss Financial Services shares his views on the market.

ET Now: If you are so bullish within the space, where are you recommending investors to take the plunge?

Nirav Sheth: Despite this, it is also amply clear that you should have modest expectations when going forward. I am very-very bullish in terms of the macro outlook that will play out over the next couple of years and I am assuming that the strong political mandate means that the right steps will be taken by the government. Banks are a clear overweight for us. Within banks, we like almost the entire spectrum. This includes private sector banks, some selected PSUs, NBFCs, etc. Outside that, we like consumer discretionary, whether it is media, retail, autos, etc. Those are the broad sectors we are comfortable with. But all these calls are on a relative basis. There are some sectors that we like, but we believe the valuations are far ahead of the story. Example, cement, and telecom. What we clearly do not like is consumers and commodities.