Positive on the capital goods space: Mangal Keshav

ET Now caught up with Amit Khurana, Co-Head, Institutional Equities and Head, Research, Mangal Keshav, to seek his views on midcap and small cap engineering stocks. Excerpts:

The midcap and the small cap engineering stocks have shown a fair bit of run up and steadied at those levels. Even the semi-large ones like Lanco have down fairly well after bottoming out. Would you buy into those stocks at current levels?

I would buy some of them selectively, essentially driven by what the budget throws out in terms of the infra spend and the boldness with which the government comes out to do lot of work. This budget will become very crucial to set up the agenda for the next two to three years. We have been more positive on the capital goods space. Road construction companies will do substantially better over the next couple of quarters. The delivery of power plants would lead to substantial opportunities for the equipment suppliers and the vendor space. It is a very stock specific play that we are doing or a very niche sub-segment play that we would prefer to go about.