Sanjiv Bhasin on his top 4 power plays; says ONGC can be added on every dip

Sanjiv Bhasin says: “There is enough room for ICICI Bank now to go to new highs. Do not play it for the next few days. This is one stock which should be in your portfolio for that 20% upside which will take it to that $100 billion club. This will be, by the way, the first fourth $100 billion entry.”

Sanjiv Bhasin recommends top power picks like NTPC, REC, PFC with bullish outlook on ICICI, Axis, HDFC, Kotak. Diversification and market insights shared across different sectors for optimal portfolio performance. In metals, Bhasin says, it is SAIL, NALCO, Vedanta and the Jindal twins. We think those are the best stocks to buy.

“If you look at what Honasa has reported, in terms of profit growth and all, given the market cap, it is not anything great. And when you do an IPO etc., post that after fundraising, some improvements etc. will happen, but longer term sustainability is going to be a big issue, as we have seen with Nykaa also.”

The PSU sector has gained attention, but the market cap and valuations of individual stocks are not overheated in the long-term context. Now we can expand the story to many of the other stocks in the PSU space. While many PSU stocks have seen significant gains in the past year, caution is advised in blindly buying at current levels.

On a year-to-date basis, the top gainer in his Rs 1,500-crore portfolio is smallcap civil construction stock Om Infra which has rallied 271%.

Sanjiv Bhasin highlights the strength of the cement sector, particularly UltraTech, ACC, and Ambuja. Cement is going through the roof. Look at the price. There is a cartel. 53% of market share is with five players. UltraTHe recommends buying Dalmia Cement on declines. Bhasin believes these stocks will continue to be re-rated and perform well in the current market.

India may see a rotation out of IT stocks and into defensives like Hindustan Unilever, Nestle, and Procter & Gamble, said Vinit Bolinjkar, head of research at Ventura Securities. Bolinjkar claimed that the financial services and insurance market for Reliance, which is expanding its business in the sector, is already crowded with 24 players, meaning Reliance will take time to dominate, and will need a good strategy and growth plan.

Top PMS fund manager Saurabh Mukherjea, whose firm Marcellus handles HNI money worth around Rs 10,000 crore, has picked 4 new smallcap stocks in his Little Champs portfolio. In his bank-focused Kings of Capital portfolio, Home First Finance has been replaced with MAS Financial Services while SKF India is the new stock pick in midcap-heavy Rising Giants portfolio. Mukherjea told investors in a note that positive developments in interest rate cuts by the Fed can improve consumer sentiments and benefit stocks with global market exposure.

Sanjiv Bhasin, Director of IIFL Securities, advises investing in PSUs, OMCs, insurance companies, and largecaps like Reliance and HDFC Bank. He also suggests considering stocks like Vedanta, Hindustan Copper, Devyani, HDFC Life, and Asian Paints for potential returns. Bhasin says: We remain in a bull market but fundamentally and technically, we have reached a peak from where we can see some consolidation/correction. '

We have the choice to hold a mishmash of stocks acquired with inadequate information, or a portfolio made up of the largest, liquid, profitable, actively traded, widely held stocks. It beats me why the sensible choice of holding an index doesnt appeal, compared to a poorly collated portfolio.