Want to create a lot of wealth? Look at these 5 PSU gems for next 6 months: 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.

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. '

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.”

“In the PSU sector, there is always a risk of divestments or other sort of factors at play. So generally, we shy a little bit away from them. But I think, you know, as we all know, when the market trades at reasonably punchy valuation, people do start looking at the PSUs again. And obviously, there are some sectors where the PSU players give you pretty good exposure as well.”

Sanjiv Bhasin, Director of IIFL Securities, is bullish on stocks like ABB, Siemens, L&T, Cummins, and Thermax. He recommends Lupin as the top play in pharma. Bhasin suggests buying MCX and IEX. In IT. he is overweight on HCL Tech, Tech Mahindra, Persistent, and Coforge. His top picks include Hero Moto, Bosch, State Bank, Canbank, PNB, REC, PFC, NTPC, and Tata Power.

Sanjiv Bhasin says: “When it comes to religious torism, the winners are going to be Indian Hotels and IRCTC. Also, add UltraTech, Ambuja and Dalmia Bharat into your portfolio on this correction. Cement will be a no-brainer right up till the elections and you will see more cause of price hike.”

Gaurav Dua said autos and financials have come out of a multi-year downturn and the upcycle is likely to last for the next couple of years. He said one should accumulate auto and financial stocks in a staggered manner.

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.

After a relentless rally for the last ten months, the mid-caps segment of the market is witnessing some profit booking/ correction/ rational shifting/ consolidation. Why slash ? Because, the way stocks are moving, there is no one trend in mid-cap space. Some are coming down just because they have moved very fast, some of the stocks where are literally hardly any fundamental, like the ones where the companies are under IBC and still quoting at half a billion dollars market cap. So there are many sub segments which are getting formed in mid-cap space and given the mix of head and tailwinds, this segmentation is likely to see an increase. So, one will have to do two things, one be bullish but be more selective and focus on managing risks.

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