Buying top growth companies is always a good idea, said Randy Watts, chief investment officer (CIO) at O’Neil Global Advisors on Wednesday. Watt likes Dr Lal Pathlab in the testing area and HDFC Bank from the banking space. We also like Tata Power due to the expansion of its renewable business, he said.
Speaking in an interview with CNBC-TV18, Watts said, “There is a going to be good buying opportunities over the next couple of months in the Indian markets and we like a lot of the companies that are real leaders in their space. We still like Infosys. We like Dr Lal Pathlabs in the testing area, which has been intricate in the COVID pandemic. We like HDFC Bank, which is the leader in corporate lending in India. We like HDFC Life Insurance Company and we also like Tata Power, which is expanding its renewable business.”
There will be some good opportunities as the pullback is not over yet, he said.
“Therefore, our focus is buying the leadership stocks, the business leaders on this market pullback. I do not think the pullback is over yet but you will start to get some good opportunities.”
On the India front, Watts said, “Global markets, India included, had amazing moves since last April and a 10 percent or so correction would be very normal market action and very normal market volatility.”
Speaking about the demand pattern, he said, “Fortunately, India has not seen a second major COVID-19 wave the way some countries like the United Kingdom (UK) have, but I do not think consumer patterns are going all the way back to where they were before the pandemic.”
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