Rajat Rajgarhia, MD—Institutional Equities at Motilal Oswal Securities, advises investors to look at NBFCs due to improvement in credit growth
The March quarter earnings season is nearing its fag end and Motilal Oswal Securities says the highlight has been the consumption story. “It has been an extraordinarily strong quarter for these firms and is the single biggest takeaway from the earnings season,” Rajat Rajgarhia, MD—Institutional Equities at Motilal Oswal Securities, told CNBC-TV18 in an interview.
On the market, he believes that a top has not been made yet. But was quick to add that expecting returns like last year may not be right. “There could be several money-making opportunities in stocks this year even as the index remains around this range by year-end.”
Rajgarhia advises investors to look at non-banking financial companies (NBFCs) due to improvement in credit growth. “Bajaj Finance Q4 show indicates strength in NBFCs will continue ahead,” he said, adding that the stock is one of his top picks at present.
On IT, he highlighted how it has done well so far but is more of a defence trade. But he does not expect the sector to deliver more than 7-9 percent revenue growth going forward.