Time to book some profit in real estate, auto stocks and Vodafone; 2 stocks to buy now: Sanjiv Bhasin

Sanjiv Bhasin discusses the induced correction in mid and smallcaps, highlighting opportunities in Hindustan Copper and small banks. He predicts a market balance post-correction and emphasizes strategic investments in the current economic climate. He also says, with the triple effect of real estate, gold and stocks, the money flow actually is coming from smaller cities.

​ The other piece in ITC Next was getting structural efficiencies out of the investments we had done on ICMLs (Integrated Consumer Goods and Logistics) facilities. So we integrated the warehouses and the factories and put in automated warehouses. It is now a seamless flow from the factory into the warehouses. Your layers of handling and transportation are reduced, so you bring in efficiencies there, Puri said.

Sanjiv Bhasin of IIFL Securities recommends investing in consumption stocks like Voltas and Havells. He says real income is going to be generated now from the tier II, tier III, and the smaller rural class, where we are seeing unprecedented growth He is bullish on metals and recommends Vedanta and JSW. Bhasin mentions investments in Indiabulls Real Estate and Indiabulls Housing Finance.

As we look into 2024, some of the sectors which have done well in this year will continue to do well, which include names like capital goods, infrastructure, auto companies, The momentum is still there. Some sectors which should pick up next year will be financial which generally remained subdued this year, at least on the largecap side.

Sanjiv Bhasin predicts largecaps to outperform with Nifty leading. Positive on OMCs, REC, PFC. Market oversold due to Fed news and SEBI diktat. UltraTech benefits from construction season. IndusInd Bank eyes improved performance in auto sector. Bhasin further says: I expect Bank Nifty to lead the winners this time, particularly among private banks. IndusInd, ICICI, Kotak, Axis, HDFC – the whole basket is looking very strong.

“I will be a buyer at the current market price on every dip. FIIs are now still short in the market. They are yet to cover their short and they will start covering. DIIs will continue buying this market and if FIIs start buying this market and crude further comes down $10 from here, bond yield topping, interest rates topping, this market has a lot of legs to go on.”

ITC's board has given an in-principle nod for the demerger of its hotels business. ITC currently has over 120 hotels and 11,600 keys across over 70 locations. Under the new scheme, the company would hold a stake of around 40% and the balance will be held by the companys shareholders proportionate to their shareholding in the company

2023 was the third straight year of record sales for Tata Motors, which boasts the widest range of electric vehicles in its portfolio. Sales last year totalled 553,000, led by its commanding position in the compact SUV segment and strong growth in hatches, despite the hatch segment degrowing at an industry level , said Shailesh Chandra, managing director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.

Our market has displayed resilience and has seen a maximum drawdown of just 6.5% in this phase (that too with FPIs in withdrawal mode). Given the relative strength of our market, we believe our benchmark index could pause and see some further time correction as opposed to deep cuts from the current levels of ~19000 Nifty.

Sanjiv Bhasin recommends Ashok Leyland, Maruti, Bajaj Auto, and Motherson Sumi as good picks for making money. He advises investors to buy IOC, NALCO, ONGC, and HPCL in the market correction. Bhasin believes private banks will lead the market higher and mentions the possibility of retail liquidation. He says, Reliance and HDFC Bank should be the main pillars of the index and the rest of the midcaps can continue to be consolidating for some time.