ET points out that UBS has identified Financials as its most preferred ‘overweight’ sector over the next 18 months as lower inflation and declining rates should support earnings growth. UBS is also overweight on banks (private/PSU), oil and gas, power, telecom and media stocks. It is pointed out that valuations remain attractive versus the historical trading range.
UBS’ sectoral picks are as follows:
Private Sector Banks: Overweight
Public Sector Banks: Overweight
Oil & Gas sector: Overweight
Auto (2 wheelers): Underweight
Consumer staples: Underweight
Autos (four wheelers): Neutral
Cement: Neutral
Consumer Discretionary: Neutral
IT Services: Neutral
Pharmaceuticals: Neutral
Small and Mid-caps: Neutral
UBS’ Most-preferred & least-preferred stocks:
