PSU banks look attractive after recent developments: Ajcon Global

We expect volatility to remain in the market and street participants would now track global cues and Q3 earnings season. We believe Q2 earnings season has been mixed bag but Q3 can be much better. The monthly sales numbers of auto companies have been subdued in December 2018.

All eyes would be also on the last budget of the current government to be presented before the general elections. We do expect volatility as the central government may resort to populist measures to gain back popularity amongst the rural community especially farmers, after its loss in key states like Madhya Pradesh, Rajasthan and Chattisgarh.

The strategy at present should be to invest in a phased manner in companies which are not connected to any political party, have a robust business model, strong earnings and cashflow visibility, low debt and backed by quality management especially on the corporate governance front.