Financials in a sweet spot, defence remains a structural bet: Dharmesh Kant

Dharmesh Kant expects a relief rally in June and July with financials in a sweet spot, supported by improving NIMs, strong credit growth, recovering microfinance lending, and stable asset quality. He remains structurally bullish on defence (citing HAL, BEL, and Mazagon Dock with potential 40-50 percent upside over 2-3 years) and healthcare, while staying cautious on consumption, metals, OMCs, and paint stocks. Monsoon progress remains a key risk variable, and he prefers tyre makers over paints as an indirect play on lower crude prices.