Sandip Sabharwal says the government has not focused on consumption and taxes are high in India. The interim budget cannot change the tax structure. No major expectations for the budget as it is an interim one. The government is not supposed to announce any major policy measures. The Bank Nifty may continue to face volatility and corrective moves in the market.
Sandip Sabharwal says: “Stocks like HAL, BEL or stocks even in the ship building space, should do well longer term because the revenue visibility is so great that they will ultimately keep on performing. If you own them, you should not be selling. But if you do not own, you should wait for some bad days of the market when there are corrective moves and there are sudden sell-offs to add.”
Sandip Sabharwal says: : "The outlook is good for most of the large private sector banks. It is just that you need to wait for the correction to get over because as the correction plays out, you will also see these banks form a large proportion of the index as well as the holdings correct. It is a matter of when to buy, not whether to buy. I would say 5% to 7% lower in all of these banks should be good levels."
“In the largecap side, if there is a dip, we could buy into ICICI Bank, that is the preferred bet and then Maruti. That is one stock which has not performed at all although most of the other stocks have moved up, so that I think still has a decent value. A contrarian bet would be stocks like Tata Steel and Vedanta. Now, whether I am buying that on dips is the question.”
"When it comes to the pecking order, private banks will take the lead because the PSU bank current results seem good simply because of the fact that the write-offs have moderated, there are some recoveries, etc, but these banks are continuously losing their market share in low-cost deposits which is the mainstay of the banks. There the larger private sector banks are gaining market share on a continual basis."