ETMarkets Smart Talk: IT, infra, metal and PSU banks will create wealth for next 3-5 years: Rishi Kohli

Gautam Duggad says: In any bull market, we will always find some things are getting too expensive and frothy and some things are always available where you can still justify, for example, that the domestic cyclicals like hotels, real estate, some of the consumer discretionary names where the earning support is very strong, are the spaces where money can be made.

The Bank Nifty snapped its four-day winning streak to slip below 44,000. The gauge of top banking stocks settled at 43,995.25, down 277.05 points or 0.63% from the previous close.

After a very short phase of a correction, several PSU bank stocks were the top gainers in Tuesday's trading session. Today on Wednesday they are trading with minor cuts and some of them have seen intraday recovery. This is worth noting for two reasons. First, all PSU banks are sitting with a decent amount of gains for the last five months, and even then they have not witnessed a sharp decline. Second, on Tuesday, the breadth of the market was weak. Suddenly PSU turns into an outperforming set of stocks. It signals a couple of things. First, because the banking sector is probably the best proxy play to the Indian economy. It appears the view on the street is positive on economic growth. Second, rather than taking exposure to an individual sector, taking exposure to PSU banks which are still among the lot that are available at relatively cheaper valuations is a trade on the street. But should one ignore the private banks? Probably not. They have their trajectory and just because they have not performed on the street it does not mean their core business model has some issues.. It's just another phase that shall pass.

The PSU Bank Index has risen by more than 56% in the last 1 year, the Nifty Private Bank Index rose by just 14%, and in the same period Bank Nifty by 13%, making PSU Banks the leader of the segment.

“I think we are set for an industrial revival and as I keep telling people, it may sound a bit boisterous, but I get a déjà vu feeling of the 2003-2008 bull market because the sectors and themes that are moving are very similar to what had happened then. We are extremely overweight are: electrical equipments, capital goods, infrastructure. ”

Buy or sell stocks: Ruchit Jain of 5paisa has recommended two stocks to buy this week - Tata Chemicals Ltd and Max Financial Services Ltd.

Several investors and analysts have voiced their opinions on the possibility of the Indian stock market benchmark Sensex hitting the 100,000-mark. Vijay Kedia expects good midcap stocks to double or triple in two-to-three years, while Samir Arora has a simple rule for compounding at 13-14% to determine the possibility of the index reaching the milestone. Atul Suri believes that there is every chance of the Sensex hitting the target within four to five years, as it has already attained a 50-60% gain from previously being at around 1,000.

Kunal Shah highlights Nifty Smallcap's LIFO model and market volatility. Nifty index remains bearish, with strong support at 21900-21850. Nifty Bank sees resistance at 47000 and support at 46500. Consider SIP for investment strategies in the market. Shah also says: The support zone at 8200 could serve as an excellent opportunity to add new long positions across the entire basket of stocks.

While RBI is expected to hold rates, the global factors like the rising bond yields and higher interest rates have led to negativity in the banking space, said Andrew Holland, CEO-Avendus Capital Alternate Strategies. The support levels for the banking index are hovering over at 42,000 levels. The Nifty Bank index closed at 43,964.

“I am sure that as the global volatility settles down, whether it is in three months, two months or six months, nobody knows, India will again stand out and do very well because there is no other market in the globe which can offer India's profile at this point in time.”