Take to Infra stocks only with a long term view : Sonam Udasi

In a chat with ET Now,SonamUdasi, Head of Research, IDBI Capital , shares his views on Infra.

ET Now: What do you do with infra, stocks like IDFC and couple of other infra finances have corrected a quite a bit, still stay away from them?

Sonam Udasi: No, it really depends on what is your perspective on the market. Our perspective is that in the near term despite what we have seen today, there is not much scope for you to rally further, you can do a 100 points here or there that said with the currency where it is and you are heading into an election year, despite the trade deficit coming where it is, it is likely that it will be perking up in July and August as well and as investors realise that if dollar is to stay here, they will look at gold positively.

If you cannot do dollar then gold is a natural hedge against the dollar in that sense so I suspect that with that view in mind in the near term the pressure will continue on IDFC. You will see bouts of buying and selling. But if you have a longer view, say 1-1/2 year kind of view, these valuations on IDFC and some of the stocks like BOB, PNB, you will only find when they are under stress and once that starts to clear out which I suspect will happen over six to eight months from now. Then that is real investment. But for now, you could probably buy IDFC after seven days again at the similar price which was yesterday.