Largecap cement stocks likely to see profit taking post June quarter numbers: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his view on results of frontline companies scheduled next week.

ET Now: A slew of earnings are scheduled for next week. Infosys, HDFC Bank, Hindustan Unilever and Idea Cellular are all ready to disclose earnings during the week. Can we expect any negative surprises or starkly positive numbers?

Prakash Diwan: I do not think there would be any significantly positive numbers. There could be some bloopers on the negative side. Particularly, cement is not something that has been very good, though prices have actually rallied much ahead of what earnings would show.

The health of most of the cement companies is yet to kind of come into the pinkest of pinks. We have started seeing a lot of build up on cement counters in anticipation of a pick-up in construction cycle. My sense is that you could probably see some profit booking in the cement space, particularly the large ones, once the numbers are out. The other disappointment could be PSU banks.

Luckily, that is not something which is slated for next week. But private sector banks, and the ones that you mentioned, will definitely do very well. Therefore, I do not see any disappointment happening from there. Auto numbers could probably be positive. Two-wheelers will also report a decent set of numbers.