Recommend Railways over Defence sector stocks: BP Singh

In a chat with ET Now, BP Singh, ED & CIO–Eq, Pramerica MF, shares his views on Defence sector.

ET Now: Defence and railways, how positive are you on the prospects of how some of these companies may do?

BP Singh: For Railways, we are very positive because it is something which can very easily percolate into the companies which are in India.

As far as defence is concerned, it is a slightly more longish story than what is generally perceived because most of the companies will end up getting the work which is at the low end.

Defence needs technology which is at the highest end and the Indian Army or Indian Armed Forces are buying the highest end of the technology when they are going ahead with. So that is a story which is slightly longish.

The market is slightly extra excited than what it is required to be. So that is where we are not so positive but we are very positive on the railways.