The best way to play the rural theme is through consumption, which is not only dependent on rural, but also on improvement in urban trends, said Rajesh Kothari, Managing Director, AlfAccurate Advisors.

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One should not buy rural based stocks expecting government to spend more on rural. Moreover, all the good news could already be discounted in the price.

Within consumption one could look auto space, consumer durables, tiles companies, plywood and some of the FMCG companies, said Kothari.

The house holds companies such as Maruti, Whirlpool and Britannia now may not buy companies, which are already rich in valuations.

“Look for companies where earnings growth is strong and valuations are reasonable,” he said.

Consumption stocks would benefit from affordable housing scheme and GST implementation, he said.

Auto ancillary is benefitting due to two trends – one is globalisation and other is regulatory changes, said Kothari, adding that they continue to hold leading players in the sector. However, he is not so upbeat on battery stocks.

The house has been positive on retail theme and likes Future Retail.

First Published:Apr 16, 2018 7:03 PM IST