Stay away from PSU banks until reforms kick in: Nitin Raheja

In a chat with ET Now, Nitin Raheja, Co-Founder, AQF Advisors shares his views on the banking and auto sector. Edited Excerpts:

ET Now: There has not been any big surprise barring a few odd companies. What is the sense that you are getting? Where do you think earning surprise will come from now up until January?

Nitin Raheja: Going forward, the banking and the financial sector will be a little bit surprising.

ET Now: Do you mean the PSUs?

Nitin Raheja: We bet more on the NBFC and the private banking space. The PSU space we will not bet till we see signs of the government giving them a little more levy and freedom for choosing CEOs etc. We would rather stay. It is just too much of a interfered into sector. We would prefer the non-PSU financials as one of the spaces that would probably surprise. Autos could be another space that could come back and show.