TCS, largely on account of valuation, says independent market analyst Anand Tandon in this chat with ET Now. Edited excerpts:
Assuming that the consolidation or dip in gold prices is done with and we are in for a rebound in gold, do you believe that investors should bet on Manappuram Finance and Muthoot Finance now?
They will certainly benefit largely because whenever there is an increase in prices, the cover goes up and, therefore, to some extent you may be able to lend more. But the direct beneficiary will be companies in the jewellery business because, like most assets, as the price goes up, the demand also seems to increase. It happens especially in the case of gold. It has not been that great a performer as compared to other asset classes like equities or even real estate. There is some upside left from here. If the market moves up, you are likely to see jewellery companies do better.