Gaurav Sharma of Globe Capital remains upbeat on select counters from the automobile, banking, consumer, housing finance and defence segments.
The market expert told Business Today on Thursday that these continue to offer strong opportunities for long-term investors.
“We are pretty much optimistic on some of the auto names. We remain bullish on Mahindra & Mahindra Ltd (M&M) from the four-wheeler pack and Hero MotoCorp Ltd still remains our positive and one among the best pick as far as the two-wheeler pack is concerned,” Sharma said.
On the banking space, he added, “From the banking space, we are very much optimistic and bullish on the larger public sector giants like State Bank of India (SBI), Canara Bank, Bank of Baroda. The smaller ones are also gearing up. They can also be considered for a short-term trading perspective but from a long-term SBI, Canara Bank are our top picks.”
Sharma also sees further upside potential in HDFC Bank. “HDFC Bank Ltd is one stock that is at its lifetime highs and there is more room on the upside. Going ahead in the next two quarters, we expect the HDFC to deliver good numbers and to perform better than how it has performed in the first half of the year,” he noted. He also named Titan Company Ltd as one of Globe Capital’s favourite picks, highlighting that it was part of their Diwali recommendations.
Discussing the housing finance sector, Sharma said, “We are bullish on the housing finance space also because a 1 per cent repo rate cut will be you know come into place and the transmission delay generally takes about two quarters to actually come to the end user and as we speak that you know these two quarters have gone by. Now what we are expecting is a better and a much more kind of uptake in the real estate pack.”
“Therefore, we are bullish on some of the housing finance companies. Aptus again becomes part of our Diwali pick. Other than that, LIC Housing is also one stock we are pretty much bullish at,” he added.
On defence, Sharma said, “Defence is a story which has to be taken into account from a long-term view. It is not a short-term story to set in. First is Hindustan Aeronautics Ltd (HAL) and the other is Mazagon Dock Shipbuilders Ltd. We are very much bullish on these two stocks but we do have a one-and-a-half to two-year kind of a horizon.”