Time to Shift Focus to Largecaps, Says Expert
According to Sanjiv Bhasin, Director of IIFL Securities, it is time for crypto investors to move their investments to largecap stocks. Bhasin advises taking profits off the table and focusing on largecap opportunities in the banking sector, communication stocks, and the overall market. He believes that midcaps may experience profit booking due to inflated valuations. Bhasin also mentions the positive macroeconomic conditions in India and predicts a rate cut from the Fed in early 2022. He recommends concentrating on index stocks and names HDFC Bank, Reliance, Infosys, ICICI Bank, ITC, and Kotak Bank as potential outperformers.
The Case for Lagging Largecaps
Bhasin explains that lagging largecap stocks may finally start performing better due to easier entry and exit options, valuation comfort, and foreign buying. He suggests that instead of expecting quick gains from specific stocks like BHEL or HPCL, investors should focus on buying into the index. He believes there is still room for growth in the Nifty and Bank Nifty indices, including stocks like HDFC, Reliance, Infosys, ICICI Bank, and Kotak Bank.
Shifting Allocation from Midcaps to Largecaps
When asked about shifting allocations from midcaps to largecaps after the election verdict, Bhasin advises a significant shift of 25-30% or even 100% into largecap stocks. He reiterates the potential for growth in Kotak Bank, the banking sector as a whole, communication stocks, and largecap companies. Bhasin suggests leaving some profits on the table and allowing others to benefit if you have already made good money in midcaps. Foreign inflows are expected to primarily target index stocks.
Expert Opinion on Honasa and Other Stocks
Bhasin expresses caution regarding Honasa, the parent company of Mamaearth, due to its recent listing and lack of clarity. He prefers Devyani International as a proven brand with a track record of success. Bhasin also mentions being bullish on PB Fintech, Zomato, Paytm, and Tata Communication. He believes SW Solar is an excellent investment opportunity with potential doubling in stock value.
A Promising Stock Tip
Bhasin recommends investing in SW Solar, emphasizing the company’s debt clearance and upcoming orders from the Nigerian government. He predicts the stock will double in value by next Diwali. Bhasin also expresses optimism about Tata Communication, citing its strong performance in unified communication, cybersecurity, and cloud computing. He believes the stock could reach Rs 2000 in the next six months.
Hot Take: Positive Outlook for Largecaps and Index Stocks
In conclusion, Bhasin encourages crypto investors to focus on largecap stocks and index investments. He highlights the potential for growth in the Nifty and Bank Nifty indices and recommends names like HDFC Bank, Reliance, Infosys, ICICI Bank, ITC, Kotak Bank, Devyani International, PB Fintech, Zomato, Paytm, SW Solar, and Tata Communication. According to Bhasin, these stocks offer valuation comfort and upside potential in the current market conditions.
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