People who missed the rally can participate by buying midcap banks: Rahul Shah, Motilal Oswal

In an interview with ET Now, Rahul Shah, Associate Vice President, Group Leader-Equity Advisory Group, Motilal Oswal Financial Services Ltd, gives his views on the market and some sectors. Excerpts:


ET Now: After a 3% move, what are you advising your clients to do?

Rahul Shah: There are good things in the midcap financial space like PSU midcap banks. There are names like Dena Bank and Andhra Bank, which have a lot of space to move in.

They have corrected a lot. Post the RBI measures more than a month and a half back, these stocks have corrected almost 50% and they have not moved up more than 10% to 15%. There is a lot of steam left in all these stocks. People who have missed out the rally can still participate by buying midcap banks.

ET Now: Which ones would you bet on?

Rahul Shah: I would recommend Dena Bank and Andhra Bank at current levels.

ET Now: These are trading plays that you are advising clients to take or these are more positional investment calls in nature?

Rahul Shah: Trading plays.

ET Now: What about non-financials?

Rahul Shah: In the non-financial space we still like IT stocks. There is a lot of steam left in auto also. From the IT space we like Infosys and in auto you can move into Hero Honda and Bajaj.

ET Now: What would you completely avoid in the market right now?

Rahul Shah: I would avoid metal stocks.

ET Now: Aside of IT, you are focussing on high beta pack. Does it mean that you as a group believe that the momentum could continue for the next few days?

Rahul Shah: Index wise there might be a consolidation at 6150. But there will be a lot of participation and activity in stocks and a lot of stocks will outperform the index.