The Indian benchmark indices saw a sporadic tumble on Monday after the European markets opened with sharp cuts on the back of COVID-19 curbs and Brexit response.
In an interview to CNBC-TV18, Abhimanyu Sofat of IIFL said that it is not the right time to look at autos. However, he recommended investors to look at IT and pharmaceutical.
Within the IT sectors, Sofat expects Infosys to do well. “Infosys is at the top of our mind; target price of Rs 1,450. I think clearly they are going to beat Tata Consultancy Services (TCS) in the next couple of quarters. Even the peers also, in terms of margin expansion, we are seeing Infosys will do pretty well,” he said.
On Tata Motors, Sofat said though on the domestic side the number could improve, its exposure to the UK is seen as a dampener.
“It does not make sense to buy the stock considering the exposure it has to the UK market. On the commercial vehicle side we are seeing that going forward numbers are going to improve, but it probably would make sense for a 15-20 percent correction from current levels before telling investors to get into the stock,” he said.
On banks, he said, “If you want to be a brave heart in this kind of a market, something like a Kotak Mahindra Bank or HDFC would be the safer one to look at over the next couple days.”
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