“Some sectors have already outperformed quite a bit, so IT and pharma are sectors we like fundamentally but we think right now it’s time to take a breather in these sectors. this is a time where relatively more cyclical plays, the higher beta plays will perform much better,” Pratik Gupta, CEO & Co-Head-institutional equities at Kotak Securities said in an interview to CNBC-TV18.

He is bullish on Hindalco in the metal sector, and advises to avoid metal companies having too much debt on their books.

He expects banks and NBFCs to catch up with the rest of the market, but prefers private banks over NBFCs.

“We do not like the NBFCs as much as we like the private banks, but at the same time there are some NBFCs among the listed stocks where the stocks are trading either below book or where the balance sheet or liability side is not a question and is now waiting for recovery to pan out so that we get more comfort on the asset side. So let me clarify that the private banks in particular are our preferred way of playing this recovery in the market,” Gupta said.

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