Take money out of cement stocks: Gaurav Doshi, Morgan Stanley

Gaurav Doshi, Equity Specialist, Morgan Stanley PWM, in a chat with ET Now, gives his views on cement stocks.

There are three cement numbers lined up today. Is there any expectation on the upside or would you stay away from this sector purely because of the cyclicality and the demand side pressures?

We recently downgraded cement and we booked profit on a lot of cement exposure. Cement stocks have had a good rally in the last one and a half months. Also, earnings would not have any major positive surprise from current valuations, and given that we will move into the monsoons and cyclically that is a weak time for cement stocks.

We do not see any major excitement which will cause some major upside or re-rating of the sector which is why given how other sectors are treating, we will be more than happy to take money out of here and reallocate to something like banking or infrastructure.