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Avoid PSB, aviation and telecom stocks: Nilesh Shah, Envision Capital

November 19
15:02 2019

Nilesh Shah, Managing Director and CEO of Envision Capital, has advised investors to avoid telecom stocks, saying that there were no reasons to be invested in the sector.

“It is not a sector to be in. All the reasons seen to not invest in the sector are there for this sector; they require loads of capital, there is always a regulatory overhang and there is always the risk of disruption because of change in technology. Therefore, as a sector, it’s avoided,” Shah said in an interview with CNBC-TV18.

Apart from telecom, he is also advising investors to avoid aviation and road construction companies and public sector banks.

He, however, is positive on the IT sector and expects the stocks to grow by 8-15 percent in the coming years.

Talking about NBFCs, Shah said: “In the very short-term, it’s looking expensive but the reality is there is a very strong runway of growth there and don’t be surprised if these kinds of businesses, the entire pack put together, could grow at 15-20 percent for the next 10 years and that is the big opportunity.”

Talking about the overall market sentiment, he said: “Our sense broadly is that maybe sometime between now and 2020 there could be further consolidation in the market. Of course, there are going to be expectations around the budget; there are some triggers like BPCL, Air India divestment where the government believes it can do the strategic divestment by the end of this financial year. So it’s going to be very event packed.”

Source: CNBC-TV18Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.

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