Motilal Oswal’s Report On Best Sectors & Stocks (June 2014)

Sector valuations: Cyclicals still at a discount (P/B) despite out-performance

–Despite the recent out-performance, Cyclicals still trade at a discount to its historical average on P/B basis. PSU Banks is at 15% discount to its historic average P/B, while Capital Goods is at 24% and Metals are at 36% discount.

–Oil & Gas and Utilities outperformed Nifty during May-14 on anticipation of policy reform actions post a strong majority government.

Nifty-50 highlights:

–19 Stocks in Nifty trades at discount to its historic average and 31 stocks at premium.

–Companies with significant discount to their averages are:

[download id=”118″]