IT stocks preferred bet, underweight on metals and auto: Deutsche Bank

With the market expected to remain volatile for the next few months, Pratik Gupta, Head of Equities-India of Deutsche Bank, has recommended that the investors should be underweight on metals and auto stocks that have large global exposure. IT services remain their preferred bet, he said.

"It is a very narrow rally driven by couple of stocks and sectors and also partly driven by the environment we are in," Gupta told CNBC-TV18.

“There are two major event risks to watch out for, on the global side there is the US-China trade war talk and Brexit. Locally, we have political situation. So one will have to be very careful in terms of portfolio construct,” he said.

"Locally, with elections round the corner, government spending on capex will be less so avoid companies that are overly dependent on government spending. However, consumer staples segment would continue to do relatively better irrespective of whoever comes to power because we will continue to see more tax break, more welfare programmes, etc.," he added.