Banking & Auto Sector Stocks

Dear Editor, As usual my eager wait is over for your well researched Diwali recommendations. My two notable observations are :

1. Like previous year, no finance (bank/nbfc etc) related stock found a place in your portfolio. Is it because of over valuation or comparatively dim prospects for the next one year?

2. Among three most beaten down sectors viz auto, metal & pharma, you suggested only two stocks from pharma sector. But my personal analysis is that the auto sector should outperform in the next 1-2 years’ time. Your views please.

With many thanks, 

- Alokmay Jana.

Editor Responds: 

We appreciate you having written to us. Yes, you have observed it correctly. The valuations are rich for banks and NBFCs and hence are not included in out top picks for Diwali portfolio. Please note, this does not mean that we expect correction in banks and NBFCs. Banks and NBFCs may still do well , it is just that we expect our Diwali picks to do better than most banks and NBFCs. In case of auto stocks, we believe the pain for the sector is still not over and hence are not included in our Diwali top portfolio. Hope our reply helps. Thanking you once gain for writing to us.