In an interview with CNBC-TV18, Sheth said the broking house has always been bullish on housing finance companies recognized by the National Housing Bank (NHB).
Moreover, with the news of debt mutual funds getting more headroom to invest into them, this could bring in additional liquidity into the sector. Structural change in the sector has already taken place with encouragement from the government for the housing sector.
On the market, he said there is a need to be cautious of the current momentum in the stock market as it seems to be running ahead of reality “but it could continue to run some more”. “This does not mean there is any threat to the Indian macro story.”
He is very constructive on the IT sector despite the recent noises over its apparent troubles. “No doubt that there has been a lot of disruptions for the sector in terms of digital disruptions, automation, products and platforms, cloud etc but it is not going to collapse,” he said. “The industry will find a way out: be it Trump’s immigration policies, automation, cloud etc.”
With regards to Infosys , he said concerns raised by the founders are valid but Infosys is too big a company to collapse under the weight of the allegations.
With all the news of consolidation happening in the telecom sector– Bharti -Telenor, Vodafone- Idea , Sheth said the broking firm does not have active coverage on the telecom space for a while now “because it is difficult to analyse them”.
“There seems to be a lot of disruption happening in the telecom space and the pricing too is not right.”
Transcript to follow.