Rahul Shah is bullish on these 2 sectors for next week

One space that was coming under pressure this week was the urban consumption basket so whether or , PVR, , all of these counters were trading lower. Is there a sentiment down tick that we are seeing as a result reaction or structurally as well you are getting a tad bit worried with the kind of numbers that we have seen in the quarter ending December?
One thing is visible, post results we are not seeing any incremental buying in the entire space and secondly, if we look at the numbers, they were mixed for a lot of stocks in the segment. In my view, the markets are skewing where the earnings visibility is there and where valuations are reasonable.

Most of the high PE stocks are getting rerated, so if we look at the urban consumption names as you mentioned and a lot of FMCG companies also in spite of the numbers being in line, they have been hammered. So I feel this is going to continue for some more time at least for a quarter or more. We would be underweight on all the stocks that you mentioned but some stocks like Lemon Tree or Indian Hotels would get into a good price from here.

Going ahead in the next week out of the seven Nifty 50 companies slated to report their numbers, three are auto companies from the likes of , as well as . Which one is your top pick from amongst the three and what exactly will you be looking at in the auto companies numbers this time around.
In the domestic consumption passenger vehicle segment, Maruti remains my top bet. I feel all the things are in place for Maruti, stock. It has already corrected 7-8% from its near term high, the valuation looks quite attractive from here.

Talking about Tata Motors, after its December numbers updated last week, we saw a re-rating in the counter. So, Tata Motors was showing a pretty sideways movement but post that we have seen some kind of interest which is going to be important. At a time when there are global recession worries, commentary of the company as how it is going to take that up and what opportunities are they seeing going forward are important. Further, in the EV space, the company’s new launches will be another key watch-out.

For Bajaj Auto, in the 2-wheeler space there has been sluggish demand from the last two-three months and stocks have also underperformed in that way. So, it is important to know from the management what their take on it is and how are they going to manage it.Going ahead in the next week are you expecting any pre-budget rally and in that as well any sectors or stocks that are on your radar?
Obviously next week also we are in expiry. Monthly expiry is coming up that is why we are seeing that markets have been quiet since the last three-four sessions. So, the sector on my radar is financials and within the financials also PSU banks.

If you notice this week we have seen three banks which have reported their numbers. Numbers are in line and better than the Street estimates. So my sense is one should still look at large PSU banks which are stable and have not performed in the last couple of weeks.

should be one of the stock in focus as the stock has been languishing around the same levels for the last three months

Also, as you mentioned pre-budget, the focus obviously is going to be on the infrastructure spend and also cement major

which will give more clarity on this and usually Q3 and Q4 are bumper for most of the cement companies.

Further, if we look at the coking coal prices, they have also come down, which was a major concern for the cement companies so I think that margin expansion also will be visible. So in my view going forward cement stocks, financials should be in focus and if one wants to play it through pre-budget rally, these are the stocks or the sector one should play for it.