Cement, two-wheelers and building materials. Stocks you should avoid now

Kotak research says the pressure on equity multiples is likely to continue if current macro-economic conditions sustain, even without further deterioration

Kotak Model Portfolio

Puneet Wadhwa New Delhi
The steep increase in domestic and global bond yields may have stirred the market out of its complacency and into recognizing that the deterioration may be here to stay for longer than earlier, says Sanjeev Prasad, executive director and co-head, Kotak Institutional Equities in a recent co-authored report with Sunita Baldawa and Anindya Bhowmik.

Given the current markets, Prasad recommends avoiding stocks where price-to-earnings (P/E) multiples are high, such as in the building materials, consumer staples and discretionary sectors.

Also Read: Downside for Indian markets will be limited in case of a global correction: Mark Matthews

"Despite the recent price correction in consumer discretionary names and ‘time’ correction in several consumer staples as we find their valuations quite

First Published: Feb 09 2018 | 10:45 AM IST

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