The recent steps taken by the government, be it the cabinet approval for privatisations or interventions in the telecom sector, are positive for the market, Susmit Patodia of Motilal Oswal AMC told CNBC-TV18.

“We have seen a spate of four, five resolutions happening in a very short span of time, be it Essar Steel or the cabinet approval for PSU privatisations. I think these are very positive for the markets,” he said.

Speaking about divestment candidates, he observed: “Bharat Petroleum Corporation Ltd (BPCL) is a very interesting divestment candidate because there are multiple moving parts within the company; and if they can get through BPCL, it will be a big positive. We think the government will make this happen. It is a positive for BPCL and its shareholders.”

According to Patodia, the government, in the last six years, has removed the sensitivity around fuel prices, which is a big mind-set change.

In terms of the market levels, Patodia said Motilal Oswal AMC doesn't have targets on markets. "We don’t think we can predict market levels but we are seeing a lot of opportunities still there in largecap stocks. So it is not like we are out of ideas or we are struggling to find ideas. One of the sectors that we have bet on is life insurance. We have almost 18 percent allocation to life insurance. The rest is private banks, which is about 38 percent of our portfolio. The remaining portion is scattered among autos and healthcare.”