NBFCs are likely to witness a positive growth as the constraints of the large corporate banks and the PSU banks have eased, says Mahesh Patil, Co-Chief Investment Officer, Aditya Birla Sun Life.

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He said that there has been some pressure in the NBFC space because of the rise in interest rates and concerns about increase in the borrowing cost.

"The real challenge for PSU banks would be in terms of how to get their act together, how to get the capital that they require...", he added.

According to him, there is a lot of under-served need in the tier-II and tier-III cities, especially, the NBFCs catering to the rural segment. There is good amount of growth there, both, by increasing penetration as well as the pick up on the rural side. "We should see a stronger loan growth. Overall the sector should do well from here", said Patil.

Metals have been a bit tricky, we have seen these stocks underperform recently on concerns about trade wars, China slowing down, he mentioned adding that he didn't see any much risk to earnings for next year.

Indian metal story for the large companies is mainly about deleveraging. We are seeing the balance sheets getting repaired and even if the metal prices correct marginally, I think after the correction we are seeing good value in the metal space, Patil added.

He believes that overall the construction and contracting companies are seeing very robust increase in order book which should flow into better topline growth in the coming years.