Hopes high from Winter Session; like autos, banks: Kotak

The market is currently in an expectation and delivery phase and hence there are high hopes from the Winter Session, says Sandeep Bhatia, executive director & head- sales, Kotak Institutional Equities. In an interview to CNBC-TV18, Bhatia says the tabling of the good and services tax (GST) and the Insurance Bill is high on everyone’s agenda for now. Also read: GST rollout may take two years: Zia Mody On the government’s progress so far, Bhatia says the BJP seems to be committed to winning state elections even after its landslide vistory in the general elections this year. “BJP is likely to come in power in Jharkhand and is also expected to do well in Jammu and Kashmir. The is the first time a government is winning and is continuing to focus on winning elections. This is a positive because this is the only way to drive reforms and drive the economic growth,” says Bhatia. However, quoting anecdotal evidence, Bhatia is quick to rule out any chances of a significant interest rate cut in taxes in the next Union Budget. Also read: IDFC CEO sees ‘devastating reaction’ if Budget disappoints On the market, Bhatia says the corporate growth momentum continues to be slow and hence the brokerage firm is revising any numbers post Q2 earnings. But Bhatia is bullish on auto, pharma and the banking space and prefers big names like State Bank of India and ICICI Bank as the stocks aren’t expensive currently.

Source:moneycontrol.com/cnbc tv18 .