Model Portfolio Update By ICICI-Direct (Jan 2016)

We continue to remain underweight on metals and oil & gas with our only pick being Reliance Industries and Tata Steel, which have a better risk reward opportunity. We expect PSU banks to underperform next year owing to steep asset quality woes ahead. In the private banking space, we prefer large banks with a strong retail presence. We continue to remain overweight to neutral on pure play defensives (IT FMCG) as secular earnings coupled with sector rotation could lead to consolidation in near term valuations and offer stock specific opportunities. We remain positive on auto, pharma, capital goods and infrastructure

IDirect_ModelPortfolioUpdate_Jan16