Reliance, financials and defence top investment picks as market leadership broadens: Rahul Shah

Analyst Rahul Shah remains constructive on Reliance, citing the company's plan to double EBITDA over five years and clarity on the Jio Platforms IPO, which is expected to contribute nearly 80 percent of EBITDA. He expects Reliance to deliver 20-25 percent returns over the next year. Financials remain his preferred sector, with positive calls on HDFC Bank, ICICI Bank and SBI, along with smaller banks like RBL Bank and AU Small Finance Bank. He remains underweight on IT, noting earnings for large-cap IT companies are likely to stay soft this quarter despite cheaper valuations around 11-12 times earnings and dividend yields near 4 percent.