Pick interest rate sensitive stocks like auto and banks: Edelweiss Securities

Vikas Khemani, Executive Vice President & Head-Institutional Equities, Edelweiss Securities Ltd. in an interview with ET Now talks about investment opportunities in the current market conditions.

What are you telling your clients to do?

Our approach has been if you take away the fear which is right now all over the place, if you just analyse the situation from India’s perspective, commodity prices coming down is a very very good positive and other commodities coming down is a very good positive.

As the fear starts receding, in hindsight, you will see this was a good buying opportunities is the hypothesis we are making. Also this kind of crisis right now can lead to some amount of comfort on interest rates peaking out. In the September policy, the probability of another hike has gone down significantly.

This will force our government to take a lot of reforms related actions. So the coordinated approach by the government and coupled with the fact that commodity prices coming down is good for us will probably form bottom somewhere around here is our thinking and if you were to play on the interest rate cycle peaking out, you are better off right now picking up interest rates sensitives such as auto and banking shares and which can probably give you a good trade from here.