Rahul Shah: 3 sectors on which Rahul Shah is currently bullish


“The new product launch will increase the price and the sales will be better in the coming few months. So I will buy Maruti with a target of Rs 10,000 from the current levels,” says Rahul ShahVP, Equity Advisory, .

After 7% of moves coming from auto index And with auto sales data and new product launches coming next week, do you think there’s more boom and steam left in auto counters? If so, which stock would you choose?
Obviously the auto companies did very well last week. I would prefer to pick Maruti on the passenger vehicle side as the stock has already gained 6-7% in the last week and there may be some more upside in this stock as valuations look interesting and quite comfortable at these levels.

Also, new product launches will increase the price company And sales will get better in the coming few months. So I will buy Maruti from current levels with a target of Rs 10,000.

The second place that managed to make a comeback this week was perfect FMCG The basket, for example, was up about 9% this week and now that’s also a tailwind that commodities are cooling off. Overall, what do you expect going forward, given the fact that these companies have already hiked prices, margin pressure or the worst part of the margin pressure is behind us, do you expect?
Inflation scare had dragged most FMCG companies down in the last few months, but now that prices have started coming down, they are looking to bounce back. Going forward I still think this could be one of the stocks in the pack that should be looking at these levels.

Is this the right time to buy some of our favorite stocks or is there still time to the bottom? Is it still better to sit on the sidelines and let consolidation happen?
I am of the opinion that one should look at the bottom-up approach and build upon it. Lots of stocks in this selloff are individually offering great value propositions.

At this point one should start building a portfolio and I think financials should be one of the top bets as the numbers have been top notch last quarter and judging by the commentary from management post Q4 numbers it looks like Q1 numbers are strong Should be.

What do you think will be the domino effect that could change course for the market right now as we digest inflation and also tightened the Fed rate. Are you expecting earnings to decline further and could this be something the market needs to watch?
The fall in earnings is the biggest fear in the market right now as the rest have already been discounted by the market at this point in time.

If earnings decline, we will see some further downside risk in the market and if it doesn’t, we have already discounted most of the events which are noisy in the market at the moment.

If you have to bet on high conviction at the moment which are they Sectors Or which stock would you choose?
Financials and banks are my top picks and in that space I think private sector banks are at the forefront of the charts. I would like

, and since they look very attractive at this juncture. The valuations at this level look very comfortable. Also, few auto names, preferably Maruti and Metal Space continue to be on top at the moment.

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)


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