Chadha notes caution pre-election due to US yields, advises good earnings as hedge. Impressed by Britannia, Tata Consumer, Axis, ICICI banks. Favors ICICI, Axis, HDFC, Kotak for growth potential and asset quality in banking sector.
Sandip Sabharwal says largecap IT stocks do not interest him. Some selective midcap IT companies are doing very well, like those which have distinct business or like KPIT Technologies or like BirlaSoft reported very strong results, etc. There, investors can selectively invest on corrections.
"Many of the infra stocks have done well already and they are likely to do well given record order books. Many companies like L&T are not only going to be getting strong orders domestically but also globally. So, there is a strong story in the investment theme. But in a deep market correction, all stocks correct. So, I think we will see some correction in these stocks also and we will use that opportunity to buy."
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We are looking at an overpriced market which is struggling to find new highs but being pushed by a wall of money and that is why that is now spreading to the smaller and midcap parts of the market., says independent analyst
On Bajaj Finance’s performance
It has been a business which has performed way better than expected, given the environment it is operating in. Unsecured lending at this stage is probably the most risky business and despite that, the numbers have been kind of okay. So you have to give it to the management that they have managed to achieve whatever they have.
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In IT, midcap companies have outperformed the tier-1 players for quite some time both in terms of the business growth as well as stock price performance, says
MOFSL.
What is your view on
ICICI Bank? The Street has liked their quarterly performance. Going forward. can one add the stock at Rs 600 plus levels?
Yes, we were positively surprised with the numbers that the ICICI Bank came out with and also with the Axis numbers. The Street was expecting improvement in some of these corporate banks. There was strong performance with loan growth showing robust trends across segments retail, SME and corporate. The core operating performance has been very robust. The asset quality has improved with a strong buffer in terms of provisioning that the company has made for any slippages in this second wave of the pandemic. That also gives some comfort on the bank going forward.