“The markets are definitely over-pessimist. Within a week, we are so heavily oversold that anything can trigger an upside now. I am very optimistic on both the indices, the Nifty and the Bank Nifty. I think they have been overdone in this sell off or profit booking in the mid caps. And mid caps, I think, will again retrace themselves after a little bit of consolidation.”
Sanjiv Bhasin, Director of IIFL Securities, is bullish on largecap stocks and recommends overweighting the Nifty and Bank Nifty due to factors such as falling yields, a weakening dollar, and falling oil prices. He believes there will be a significant amount of pent-up buying in the range of 19,100 to 19,300. Bhasin also shares three stock ideas for the longer term: ABSL AMC, Devyani International, and Idea. He believes these stocks have the potential for significant growth and urges investors to take advantage of the current weakness in the market.
Sanjiv Bhasin believes Bajaj Finance is a strong stock that will drive the Nifty higher. He recommends buying the stock on any declines near 7500, as it has a positive outlook with strong numbers and guidance. Bhasin also expresses bullish views on ICICI Bank, Reliance Industries, Axis Bank, Asian Paints, and Paytm. He suggests adding Mahanagar Gas and IGL to the portfolio, as they are expected to benefit from the expansion of electric vehicle infrastructure.
Sandip Sabharwal believes that Tata Tech, if it achieves high valuations and goes public, will perform well initially due to its reputation and then based on actual financial results. He expresses positivity towards the hospitality sector, particularly Indian Hotels and Lemon Tree. Sabharwal also discusses the potential of Tata Motors and highlights his recent investments in Voltas and Aditya Birla Retail. Concerns regarding Aditya Birla Retail s diversification strategy are acknowledged, but Sabharwal believes that most of the negatives are already priced in.
“There is still a lot of valuation comfort in largecaps and I would feel that now Reliance and HDFC Bank are pricing in most of the lukewarm earnings or the prospect of some of the repatriation and would start to shine. We think that this is a very opportune time to get into the seventh largest bank in the world.”