Upside left in oil PSUs; infra and engineering stocks need to justify their current pricing: IV Subramaniam

In a chat with ET Now, IV Subramaniam, MD & CIO, Quantum Advisors, Director, Quantum shares his views on the PSU pack including capital goods and OMCs.

ET Now: What is your view of the entire PSU pack like capital goods, OMCs, etc, leave aside PSU banking names?

IV Subramaniam: The trade in PSU pack can take a bit of a breather. But between the two, the engineering stocks or the infrastructure related stocks would probably have run up much faster than their fundamentals demand.

On the oil PSUs, many of them were extremely cheap around the middle of last year. They did deserve a rerating and the price action was in line with the valuations.

Between the two, oil PSUs may have some correction but there is still lot of upside left. As far as the infra and engineering stocks are concerned, the earnings numbers need to be really good for it to justify at these prices.