Rate-sensitive stocks could do well post elections: Jyotivardhan Jaipuria, BofA-ML

In a chat with ET Now, Jyotivardhan Jaipuria, HOR, BofAML, shares his views on the market. Excerpt:

ET Now: There is a tough fiscal position and a sticky inflation. How would you play the financial sector now?

Jyotivardhan Jaipuria: We prefer the private sector to the public sector. We think the NPL fear is still there for the next few quarters and that is the reason we are avoiding the public sector.

ET Now: If inflation is expected to remain high do you still expect a 10% to 14% return in 2014 and would you still advice investors to stick to defensives?

Jyotivardhan Jaipuria: We have a mix of defensives and rate sensitives. In the first part of the year, the defensives will do better and after elections, if we can get rate cuts coming through then the rate sensitives will start to do better.