Stock prices are running ahead of fundamentals and there’s a need to be very stock-specific when buying from broader markets, said Gautam Duggad, head-research, institutional equities at Motilal Oswal Financial Services, in an interview with CNBC-TV18.
According to him, investors should bet on stocks such as ICICI Bank, Axis Bank and SBI. “Largecap names in banking and NBFCs will continue to do well,” he further added.
Consumption in India is also an evergreen story, he added. He said, “Consumption in India remains an evergreen story. Nothing has changed over there. Our picks in that basket have also not changed over the last 4-5 years; what we like, by and large, remains the same – the likes of Hindustan Unilever, Titan, Pidilite, Britannia and Tata Consumer.”
On the auto sector, Duggad said, “Tata Motors is more of a global play. We currently prefer Motherson Sumi Systems in that segment, but not denying the fact that the operating leverage and financial deleverage can create wonders for stocks like Tata Motors.”
For the entire interview, watch the video.