Kotak Neo Bullish on Private Banks, Select Defence & Pharma Stocks
Equity research head Shrikant Chouhan says RBI and government measures have supported the rupee, while select sectors offer medium-term opportunities.
GG News Bureau
Mumbai, 27th Oct: Kotak Neo Head of Equity Research Shrikant Chouhan has expressed optimism about private sector banks, select defence stocks and pharmaceutical companies, citing encouraging earnings and recent sector developments. He also said measures taken by the Reserve Bank of India (RBI) and the government appear to have helped stabilise the rupee.
Chouhan said the rupee had moved from levels of around 96–96.50 to approximately 95, describing the shift as positive. He added that the RBI and the government were closely monitoring the currency’s depreciation and taking steps to prevent further weakening.
Private Banks Remain on the Radar
Chouhan said private sector banks had reported decent financial results this time, supporting his positive outlook for the sector.
He expects further upside and said large-cap private banks could be considered by investors with a medium-term investment horizon. His comments point to earnings performance as a key factor supporting the sector’s prospects.
Selective Optimism on Defence Stocks
Chouhan also expressed selective bullishness on defence companies. He said recent news flow had helped the sector perform well over the past three to four days, with several defence stocks continuing to trade higher.
However, he indicated that the outlook was selective rather than a broad endorsement of every stock in the sector.
Pharma Outlook Improves, Insurance and Hospitals Face Headwinds
The equity research head said pharmaceutical companies had reported their results, prompting a more positive view of the contract development and manufacturing organisation (CDMO) segment. He expects the pharma sector to perform well.
In contrast, Chouhan flagged insurance and hospital stocks as areas facing challenges due to regulatory interventions. He said these developments had weighed on the performance of the two sectors.
His assessment highlights a sector-specific approach to the market, with earnings and recent developments shaping his outlook across banking, defence and pharmaceuticals, while regulatory concerns remain a factor for insurance and hospital companies.
