Insurance businesses may help HFCs unlock value for investors: Deven Choksey, K R Choksey Securities

In an interview with ET Now, Deven Choksey, MD, K R Choksey Securities, shares his views on markets. Excerpts:

ET Now: India is standing out in emerging markets. Do you think that disproportionate capital allocation would benefit us from here?

Deven Choksey: The countries like China, Russia and Brazil are facing their own challenges at this point of time, where we are relatively better off. The government has taken lots of steps. On the land acquisition bill, the government is trying to transfer the responsibility of implementing the law to the states. In such a situation, there would be competition within those states, that could be a very smart move. Removing the ambiguities on foreign investment and making all merge into one definitely paves the way for inviting newer amount of funds into the country.

Many companies in India are available at attractive valuations. This is also inviting more number of people to come to the markets. So, many factors are coming together and giving larger amount of confidence to the investors. Certainly, we are in for a little better time in this particular month. We will have to see how exactly the monsoon session of parliament pans out. But as of now, it appears that we should remain in 8250 to 8750 kind of a range for Nifty for at least some more time until more factors emerge.

ET Now: What about some near-term ideas, investment ideas, for our viewers?

Deven Choksey: It looks more promising within the banking space and particularly housing finance companies are looking relatively more promising within the NBFC space. The private sector banks are looking interestingly positioned in the banking space, and the larger PSU banks also remain quite favourably placed.

As I mentioned, in NBFC space, housing finance companies look positive with unlocking of valuation due to the insurance business getting listed in larger housing finance companies. So some of these companies are likely to be more positively driven going forward.