What is it that you have made of the Tata Motors demerger and what should investors who own Tata Motors shares now look forward to?
Digant Haria: The best part about Tata Motors still remains the success in the domestic premium car market. Electric vehicles are still only a story. And China has already taken a big lead in electric vehicles. Even Tesla is struggling. So the story here still is about passenger vehicles and we all know that commercial vehicles (CVs) are deeply cyclical. So once more details of the merger come out, most of the people would like to be in the passenger vehicles part of the demerged business, the one which is doing well and that has a lot of potential.

But yes, CV finance division and the CV division, both will be a part of the same entity. That is something which will be very, very cyclical and that is also something which has given pain to this company in the past as well. So yes, excitement will be there. But the long term story is still with the passenger vehicle part.

Any views on an INOX Wind?
Digant Haria: Earlier, solar and wind used to be two separate sources of energy, with all the new orders that are coming in. solar and wind, there’s a hybrid model and solar is going to do very well. Wind will also do very well. We are quite surprised with the reverse auction bidding process coming again, because that was the one we took down in 2017-2018. But if there are some real big problems, the government will iron it out. The government is not stupid enough to derail the whole energy security of the country. One has to look beyond this event. I do not think it will be a game spoiler for the sector.

How you are looking at the momentum that we are seeing in some of these largecap stocks. Reliance Industries, for instance, has been a stellar performer day after day. The banks, barring HDFC Bank, have been at the forefront of the action, hitting record highs. Is this going to be the course of action for some time? Where within largecaps are you seeing opportunity?
Digant Haria: Reliance and maybe I will add SBI to that list. HDFC will continue to rest for some more quarters and SBI and Reliance should be driving the market. Reliance because the gross refining margins across the entire sector are doing really well. when the core oil and gas business does well, everything else does not matter so much and that is why we are seeing strength here.

If you look at these private banks, and the private financial sector, something or the other keeps coming up. Sometimes there is a deposit problem, sometimes RBI is behind a lot of them for fast growth. The retail sector is slowing down. It is public sector banks in the financial part which will lead the rally. And here it seems like Reliance will lead the rally. So whatever HDFC cannot do, I think these two stocks will cover up for that.