2 stock picks to make money for next 1 year: Sudip Bandyopadhyay, Inditrade Capital

In a chat with ET Now, Sudip Bandyopadhyay, Inditrade Capital, says pretty much the whole world is of the opinion that dollar will keep strengthening and somewhere that will be tested.

Edited excerpts


Do you believe that every rise will be sold into this market because the view is predominantly bearish?

Pretty much that is what it is. In fact, unfortunately at this stage, there are more guys who are willing to sell than buy. For a long term, investors have been looking at the market but still they are in the sidelines. We are also not confidently advising them to get into the market at this stage. Even for them instead of catching a falling knife, it is probably better to wait for some more time before they start taking positions. Of course. there are opportunities but as I have just mentioned, it is probably better to watch and see where things settle down before getting into it.

Of course, you have the spectre of US Fed increasing rates and the way the currency has been already moving s also a little alarming from the point of view of investors. So we will have to wait and watch for the time being definitely there is a bearish trend.

We were talking about the safer bets in the markets. Would that largely be because of the rupee’s fall IT and may be extending that trade out pharma?

Yes, to an extent you are absolutely right. The way we have seen the rupee correct or fall today and the way the prognosis is coming for rupee, I think IT looks a safe bet and that is pretty much getting reflected. I have been reasonably positive on a largecap IT stocks like TCS and Infosys. That is definitely a good place to hide at this stage. Some of the pharma companies are absolutely right. I would like to mention particularly Lupin. It has got a great US business, excellent pipeline in US. Good kind of status vis-à-vis USFDA particularly post their Goa plant getting a clean chit. So that is a good buy at current levels.

Also I would say do not lose sight of some of the banks particularly State Bank of India I think somewhere things are turning positive for the banks and I would not be surprised if there is a significant rally in the banks at some point of time in the near future.

May be on the dollar index, the world is panicking because the cosy correlation has got rebooted.

You are absolutely right and I am completely with you as far as what is happening today in the market. I think pretty much the whole world is of the same opinion that dollar will keep strengthening and that obviously leads us to believe that somewhere that will be tested. That is a point when emerging markets like India which for a minute if you leave out the demonetisation, is a huge issue.

I think Indian markets were fundamentally strong. We have to see the repercussions of demonetisation but eventually I think things will settle down. It is a matter of one or two quarter and growth will come back to Indian markets. So if you are positioned right at that point of time I think you will make money so you have to decide as a long term investor when you want to start buying the shares, start buying good quality shares rather whether you want to start it next week or you want to start may be couple of weeks down the line but it is only a matter of time.

I think we have seen a significant correction the valuations have become more reasonable, I am not saying it will not become little more reasonable but somewhere I think things will start turning around and I think it is a question of deciding and taking your point when you start investing back in the market. I am not saying US markets will not go up, I am not saying that US growth will not comeback but having growth in US probably is good for India and lot of sectors of Indian economy will start benefiting if US gets into a different gear.

I just about enough time to get one investment idea from you I will keep the time frame market cap open. You can pick and choose from 6000 stocks but one stock where you think money will be made in next one year?

Well I think that I will go with State Bank of India I think I believe investor must get into State Bank of India at current levels, it is a great story in the making. It has seen enough and more pain. Things are slowly falling in place so State Bank will be my one pick if you allow me a second one I will probably go with Lupin. Again it is a safe and pretty steady bit and Lupin also can be bought at current levels.