HDFC and South Indian Bank are good buys; avoid metals: Sudip Bandyopadhyay

In a chat with ET Now, Sudip Bandyopadhyay, President of Destimoney Securities, shares his thoughts on the market. Excerpts:

ET Now: What would you be would betting on with respect to the overall macroeconomic theme improving?

Sudip Bandyopadhyay: One thing I will not bet on is metals. China is definitely in for a lot of turbulence. Even this morning, Asian Development Bank has lowered the GDP growth forecast from 7.4 to 7.2. Hence, metals are in for a tough time.

When it comes to rate sensitives, we want the investors to selectively pick it up. Within this also, we will not advice investors to pick up some of the banks which have got global exposure, particularly in the erstwhile Soviet Block. But domestic private small banks which are not really involved in global markets are fine.

Perhaps a South Indian Bank or a Lakshmi Vilas Bank is a good buy even at current levels. You can avoid City Union today because they have got some sticky exposure in SpiceJet. HDFC is also a good buy even at current levels.

On the other hand, we are a bit cautious in the infrastructure space. But somebody with one year plus time horizon can take advantage of the correction and pick up good infra stocks like L&T and hold it for six months plus.