“Within India, we like some of the private banks and one or two of the leading public sector undertaking (PSU) banks,” said Pratik Gupta, CEO and Co-Head, Institutional Equities, Kotak Securities, in an interview with CNBC-TV18.This is one sector, which hasn't done as well, or in some cases, some stocks have done actually much worse than the overall Nifty, he noted.In the current environment of flattish market, or maybe a modest correction in the next few months - stocks like insurance look quite good as well.Also Read: Blackstone exits SH Kelkar & Co, sells 10.4% stake to Firmenich via block dealHe believes the worst is over for life insurance companies.Gupta mentioned that he has generally been somewhat cautious on auto sector for the last one year or so.“Now we have broadly speaking turned a bit more neutral. But within this segment, we still prefer the auto ancillaries. That was our preferred play earlier as well and even now going forward, we think the auto ancillaries are better positioned,” he said.The two-wheeler space is one which Gupta would generally avoid.“So within the auto space, auto ancillaries would be a preferred bet, followed by commercial vehicles where we think as the economic recovery progresses, as the capex cycle picks up, the CV space could do well. Overall, I would say, prefer the auto ancillaries and avoid the two wheelers,” he mentioned.Gupta also believes, some of the COVID recovery plays like the airline stocks, mall operators, multiplexes, can do quite well. Most analysts are generally projecting a return to pre-COVID levels in FY23. But one may end up seeing slightly better growth, even in FY23 versus FY20.According to him, there isn’t too much value out there in secondary market.“We generally find most investors complaining about valuations. Foreigners generally are not really sort of incrementally buying India,” Gupta said.India's been one of the best performing emerging markets this year. The Nifty is up almost 30 percent this year, he noted.Also Read: Where are high net worth individuals and ultra HNIs investing in India?“The overall MSCI Emerging Markets index is actually down about 2 percent and markets like China, which is down 7 percent, the other Asian markets also haven't done too well. India has really had a phenomenal run this year,” he said.“In the near term, we are a bit cautious. We think the market will trade sideways and there are obviously some pockets of exuberance like in some midcaps,” Gupta stated.He believes one needs to look at some of the new-age companies with a longer-term view.“Most of these companies, you have to take a very long-term view. In general, for good businesses, which are getting listed, if the stock pops on day one, at least our advice to institutional investors is if you have a longer-term view, more than a two-three years kind of view, it's usually good to hold on to these stocks,” Gupta explained.Also Read: Nykaa makes strong market debut, shares list at 79% premium over issue priceFor the full interview, watch the accompanying video.Catch all market updates here.