Two-wheelers, private banks, consumption story to play out well: Ajay Bagga

In a chat with ET Now, market expert Ajay Bagga shares his views on his top investment ideas.

ET Now: What are your top investment ideas?

Ajay Bagga: You will see a continuation of foreign inflows, but one thing that I should flag off is the Fed meet next week. Let us see what comes out of that.

Overall, I would say the momentum looks upward. Downside in Nifty should to be capped at around 8,000-8,200. It seems to be a good time to initiate some long-term allocations.

I would say autos and especially four-wheeler stocks look very good. Private sector banks, select housing finance companies (HFCs) are looking good. I would still say that any leverage should be avoided because rates are not going to go down in a rush.

The RBI seems quite firm in its belief of first delivering the January number and then looking at any rate cut.

So, I am not expecting that August 4 review will see any rate cut. It could be a pretty hawkish commentary. Thus, investors must stay away from leveraged companies. Those are not turning around swiftly.


Go for companies which are not asking for capital. IT, pharma clearly they throw out a lot of cash. They do not guzzle cash at all; they are going to do well. I mentioned auto, private banks. I would also look at FMCG.

The consumption story is going to improve especially with the Seventh Pay Commission and you can look at two-wheelers. Again valuations are looking good as FMCG stocks have underperformed quite a bit.

It is a one-year story, it would not turn around very fast, but the market will turn faster. So, the market will revive in anticipation. Two wheelers can be looked at again for an investment.