See Maruti, Tata Motors, Bajaj Auto outperforming market: KR Choksey Securities

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on various sectors that may outperform Indian markets. Excerpt:

ET Now: From January to middle of May, which group has potential to outperform Indian markets? Would you bet on cyclicals, exporters or on pure consumption plays?

Deven Choksey: It will be a mix of all and the approach would be clear — in individual sectors within those respective themes, cyclical holds the preference above everybody else.

Many of the cyclical stocks are available at a comparatively cheaper valuation. If the economy is returning back to growth, then probably cyclicals would take the lead in the entire space. It does not mean that the others would not perform but relatively, the cyclicals could outperform in this kind of a market.

We believe that many of the banking companies could take lead; many of the auto companies like Maruti, Tata Motors, Bajaj Auto, among other, would also take lead. Within the capital good segment, particularly those, who are the ancillaries to the power sector, they could once again come back into reckoning. Hence, to a greater extent, you would find selective stocks within different pockets would get rerated in this marketplace.