Rate sensitive midcaps will perform well: Rahul Shah

In a chat with ET Now, Rahul Shah, Associate Vice President, Group Leader-Equity Advisory Group, Motilal Oswal Financial Services Ltd shares his views on the Nifty.

ET Now: The Nifty scaled fresh highs today. Do you think there is still some potential opportunities left on the midcap end?

Rahul Shah: The way the Nifty has moved up, there is lot of room for the midcap stocks to catch up. We have seen in past bull markets where the valuations have skyrocketed. Right now, there is no such scenario in the midcap as well as in large caps.The midcaps which are rate sensitive should be the flavour. Cement companies should be the flavour going forward. I believe you can look at rate sensitives midcaps. Home finance companies like say Dewan Housing, Repco Home Finance these two are the top two ideas in rate sensitives and midcap space in housing finance.

In the cement you can look at JK Cement and JK Lakshmi which looks promising in cement sector. Cement as well as housing finance looks very promising as of now. Cox & Kings is one idea apart from this which we have been bullish for quite some time. One needs to be very cautious and to get into because of the management. Right now the flavour lies in the infra stocks, which have moved up. But I would prefer playing into something like power. Among the infra companies, getting into IDFC, PFC or REC in that space is a good idea. These six-seven ideas which we have been very quite bullish. We have been buying for the clients.