In a recent interaction with ET Now, Sabharwal highlighted that these segments are well-positioned to benefit from easing monetary conditions, improved liquidity, and policy tailwinds.
Sabharwal believes Reliance has entered a fresh cycle of outperformance driven by long-term initiatives in new energy and other ventures. He also sees undervalued potential in auto and infra stocks, especially as management optimism aligns with accelerating growth.
With supportive tax structures and falling rates, he expects a broad boost to companies across construction, capital goods, and related sectors.
He also pointed out that auto and infra stocks remain undervalued in terms of growth potential, especially as managements become more bullish when growth is high.
“Many auto, infra stocks are underestimated in terms of growth potential this year because the managements will be most bullish when growth is high; they will be most bearish when the growth is low,” he said.Also read: Can’t call the bottom in this market; it’s a buy-on-dip rather than sell-on-rise market: Abhay Agarwal
Sabharwal emphasised that “macro parameters in terms of tax breaks, lower interest rates, etc., will boost growth of many segments in the economy domestically”, adding that such conditions would help the profitability of many infrastructure, capital goods, etc., companies.
When asked specifically about construction stocks, Sabharwal acknowledged his historical preferences, stating that NCC and Ahluwalia are among the names he has liked. ET Now pointed out that Sabharwal has shown interest in these stocks in the past.
Sabharwal added, “These companies will do well and there will be others also. There are a lot of companies that directly benefit when interest rates go down because interest rates [play] a strong part in the overall availability of liquidity for execution, as well as it cuts down the interest cost on the balance sheets.”
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