Sector Specific Analysts View.

The week ended on a very high note. A slew of analysts, while speaking to CNBC TV-18 gave their views on the stocks and sectors for next week.

Investment Advisor PN Vijay

In the midcap sector, I like technology and banking. Banking is back to being a value play, still the valuations are reasonable and the net interest margins as we saw in HDFC Bank were very good indeed. Probably this SLR reduction would improve liquidity. So banks would continue to be a good value play. Midcap IT would be a very exciting sector too right through the year.

In media, I like WWIL because it’s a very tried and tested business model and DTH (Direct-to-home) is not going to mean the end of the world for the MSOs (multiple system operator) and cable operators. All that you are going to get is more amount of transparency and regulation and this is going to bring lot of pricing power back to the MSOs who control the cable industry which is as big as telecom industry in India

Deepak Mohoni of trendwatchindia.com
It’s a very strong move obviously in banks particularly ICICI Bank. But until today the banks were not really among the leading gainers for at least one-two months. Since today is the first move we are seeing we will have to see whether it sustains in the next week or two or whether it’s a one-week step-up to catch-up and then go sideways or a little down.

Ratnesh Kumar of Citigroup
As far as technology is concerned, it has been a good set of indicators in terms of pricing, in addition to which, the ability of various companies in the sector to hold on to growth and margins, despite some unfavourable trends on the currency side is laudable. So I think that is one of the sectors I continue to be extremely positive on.

Banking and financial services as a business is something I like a lot in the context of where the economy is going. Obviously, it is a sector, which is fundamentally linked to the growth of the economy. For the time being however, I am underweight on the sector overall, simply because of the fact that I see some moderation and credit growth driven by many factors.

As far as the oil sector is concerned, the outlook is driven by two to three factors. Oil price is one of them, then, of course there is the big government policy interface. The overall view on the sector obviously is an underweight one. Within that context, we are a bit more positive on the gas chain as well as on the upstream side.