Not very bullish on capital goods and real estate sector: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Principal & Head-Private Client Group Business, Nirmal Bang Securities, shares his views on different sectors. Excerpts:

ET Now: Which sectors do you think that problem will occur in first?

Mehraboon Irani: Capital good certainly yes and real estate could be the next one. Most of the companies in both the space have problems as far as the balance sheet goes. Lot of expectations are built in, the direction will remain good, the direction as far as earnings growth will remain good. The point is it is not going to happen overnight and that is where some disappointment may happen. So you will have the stocks possibly at the same levels or come down as compared to where they are because they have already gone up too sharply. A name like a Thermax and Voltas are good companies but the point is they have gone up too sharply. If I buy Voltas right now how much I am going to make even if the index goes up by 10 per cent, nobody likes to ask this question. People are chasing momentum right now, sentiment is at its peak, liquidity is there and people are enjoying what is happening right now in the market. But if I start thinking one year later what is going to be the price of my stock and that is where I will start feeling initial tremors which will ultimately relate to my underperformance vis-à-vis the markets if I am buying into those expensive stocks.