HDFC Bank and Bajaj Finance Q3FY22 results have been encouraging, said Andrew Holland, chief executive officer of Avendus Capital Public Markets Alternate Strategies, on Wednesday, adding that a few select stocks could get rerated if oil hits USD 100 per barrel.

He said, “There might be a better run-up in financials in a very short-term and of course the union budget coming up and that would keep the market optimism at a high.”

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Speaking in an interview to CNBC-TV18, he said, “Forecast of USD 100 per bbl (on crude) is on its way, which is scary for inflation and also not great for India as a country. If that’s the case then there is a lot more room for the sector (oil and gas) to continue to move higher and there would be rerating if $100/bbl forecast, which I keep seeing becomes a reality, but I am not saying that that would be great for the markets globally or locally.”

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On autos, he said that valuations on auto ancillaries look more reasonable than original equipment manufacturers (OEMs). He said, “The way to play this in terms of trying to decide who the winner is in four-wheelers, two-wheelers and electric vehicles (EVs), there is always froth with some danger is that the auto part suppliers are going to be the biggest beneficiary until the winner appears.”

For the entire interview, watch the video