ET NowET Now caught up with Sudip Bandyopadhyay, President, Destimoney Securities Pvt Ltd, for his views on the markets as well as some sectors and stocks. Excerpts:
ET Now: What is in store for the markets for the rest of the week given, in view of the important numbers that are to come?
Sudip Bandyopadhyay: This week will really start getting activated from day after tomorrow when some of the numbers come in. The balance numbers will come on Friday. IIP, WPI and CPI are extremely critical as they will give a clear indication as to whether we are headed for an interest rate cut by the RBI on December 2 or not.
So it is going to be an important week for India. Of course, we will have to see how the other developments in the domestic economy pan out. The winter session is supposed to start soon and a lot of expectations are being built around GST, the IRDA Bill, etc. Somewhere the markets will start working on those numbers and developments, and start taking cues.
Having said that, I will add that the market is having a positive bias. There are not too many negatives — whether in the global market or the domestic one. The signals are positive as far as Indian economy and Indian capital market are concerned.
ET Now: What are your top three stock recommendations from a near-term perspective?
Sudip Bandyopadhyay: If you look at the stocks on the large cap side, we like ICICI Bank. We like Reliance Industries. We also like Hero MotoCorp.
If you want to venture into the midcap from an aggressive investor’s viewpoint, we will recommend to you Mangalam Cement. Cement is one sector which will give excellent returns and this stock is really interestingly poised.
We also like Exide Industries, because the value unlocking possibility on the insurance business is significant, apart from improvement in routine operations. These are the two midcap bets we are gunning for.
ET Now: Both Engineers India and L&T have come out with very poor numbers. Both these companies are clearly indicating that it is too early to be hopeful about the investment cycle. What should those who bought capital goods stocks, investment-related stocks, cyclical stocks, do now?
Sudip Bandyopadhyay: If you have one-year plus time horizon, you can buy L&T and some of the other cap good stocks. But if you are expecting to make money over the next two months, three months or six months, then they are not the right choices. You are absolutely right. The investment cycle has not yet kick-started in the true sense of the term. So, you will have to be patient.
L&T is also facing problems on execution in the international business space. The order inflow is good — both domestic and international — but the execution on the international market is facing some difficulties. It will take a little while before L&T gets that resolved and overcomes that.
But having said that, it is an excellent company with good management. In the long term, we are bullish on L&T. But in the short term, it is a stock you better avoid.
ET Now: What is in store for the markets for the rest of the week given, in view of the important numbers that are to come?
Sudip Bandyopadhyay: This week will really start getting activated from day after tomorrow when some of the numbers come in. The balance numbers will come on Friday. IIP, WPI and CPI are extremely critical as they will give a clear indication as to whether we are headed for an interest rate cut by the RBI on December 2 or not.
So it is going to be an important week for India. Of course, we will have to see how the other developments in the domestic economy pan out. The winter session is supposed to start soon and a lot of expectations are being built around GST, the IRDA Bill, etc. Somewhere the markets will start working on those numbers and developments, and start taking cues.
Having said that, I will add that the market is having a positive bias. There are not too many negatives — whether in the global market or the domestic one. The signals are positive as far as Indian economy and Indian capital market are concerned.
ET Now: What are your top three stock recommendations from a near-term perspective?
Sudip Bandyopadhyay: If you look at the stocks on the large cap side, we like ICICI Bank. We like Reliance Industries. We also like Hero MotoCorp.
If you want to venture into the midcap from an aggressive investor’s viewpoint, we will recommend to you Mangalam Cement. Cement is one sector which will give excellent returns and this stock is really interestingly poised.
We also like Exide Industries, because the value unlocking possibility on the insurance business is significant, apart from improvement in routine operations. These are the two midcap bets we are gunning for.
ET Now: Both Engineers India and L&T have come out with very poor numbers. Both these companies are clearly indicating that it is too early to be hopeful about the investment cycle. What should those who bought capital goods stocks, investment-related stocks, cyclical stocks, do now?
Sudip Bandyopadhyay: If you have one-year plus time horizon, you can buy L&T and some of the other cap good stocks. But if you are expecting to make money over the next two months, three months or six months, then they are not the right choices. You are absolutely right. The investment cycle has not yet kick-started in the true sense of the term. So, you will have to be patient.
L&T is also facing problems on execution in the international business space. The order inflow is good — both domestic and international — but the execution on the international market is facing some difficulties. It will take a little while before L&T gets that resolved and overcomes that.
But having said that, it is an excellent company with good management. In the long term, we are bullish on L&T. But in the short term, it is a stock you better avoid.
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