Nischal Maheshwari, CEO of Institutional Equities and Advisory firm, Centrum Broking believes the auto sector will do well as a pack, but prefers to place his bet on the two-wheeler segment this time.

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Within the two-wheeler space, he believes 'Hero MotoCorp could be the dark horse'.

“This time we would want to bet on the two-wheeler space. This is going to be a good festive season. We believe that there is going to be a revival on the rural side. Hero MotoCorp could be the dark horse here," Maheshwari said in a chat with CNBC-TV18.

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Maheshwari prefers to continue holding on to the public sector banking space at least for the next couple of quarters. He believes they could outperform large-cap private banks.

“For the moment PSU large caps like Punjab National Bank (PNB), and State Bank of India (SBI) are the ones, which we cover, we like them as well,” he said.

Interestingly, brokerage firm UBS on October 13 downgraded the rating for the SBI stock for the first time to 'Sell' from 'Buy', while cutting its target price to Rs 530 from Rs 740.

Maheshwari said he would also consider some information technology (IT) stocks given that the prices have come off post-earnings.

“The only disappointment I see is the guidance, which both Infosys and HCL Tech have cut. Otherwise, the results are more or less as expected,” he said.

In the retail sector, he believes 'recovery is going to be a slow grind'.

“..apparel and all will be a slow recovery because we are not seeing any signs as yet of a recovery on the retail side,” he said.

From the manufacturing space, he believes Solar Industries and AIA Engineering will be the key beneficiaries of the government’s policy on mines.

For more details, watch the accompanying video

(Edited by : Shweta Mungre)

First Published:Oct 13, 2023 12:05 PM IST