IIFL's Sanjiv Bhasin is very bullish with one-yr view, here's why

The only fly in the ointment will be this electoral results which can cause volatility for a few days, Sanjiv Bhasin, Executive 66859460 66848762 66842607 VP-Markets & Corporate Affairs, IIFL Securities, tells ET Now. Edited excerpts: How should one approach the market now? Crude is down, Fed could be changing its stance, the macro fears are behind us. Is it time to go all in for a big bet? One month back, on 29th October, the Nifty hit 10,020 on the lower side and everyone was talking about 9,500. That was the key, buy the fear. It has been my year down prognosis, buy the fear each time you get these type of falls because locally the domestic investor has been the backbone of this market and all the positives are in the oil price, bond yields. Today the rupee breached even 70 as the dollar is weakening. So, we are in for very good times in 2019. The only fly in the ointment will be this electoral results which can cause volatility for a few days. But surely, with a one-year view we are very bullish and equity should be the outperforming asset in 2019. How would you approach the steel stocks? We are relatively bullish. We have used this fall in the last few days again to accumulate. Tata Steel, JSW, Hindalco and Vedanta offer immense value. If the dollar weakens, we should see some more stability coming into the Chinese market which we think is very heavily oversold with lower inventory. Metals could be an outperforming sector in 2019 and global growth should be the catalyst which can drive metal prices higher. If the Fed is becoming dovish, it purely signals that there will be much more capex at a lower cost which globally will be played out through the metals stocks. Tata Steel and JSW would be two of our top picks and on the aluminium and ferrous side, we would be more bullish on Hindalco and Vedanta. Should one buy IT stocks? It has become a case of glass half filled or half empty. If you want an India exposure, IT has seen a relatively sharper than expected correction in the last few weeks or months because the rupee tailwind is now headwind. But we can see that huge amounts of foreign buying is returning and it will generally have some of the blue chips in IT in their portfolios. TCS, Infosys take the cake. If I could suggest two names, it would be Mindtree and HCL Tech which as a house we are very bullish on. How are you looking at the REC-PFC duo from the power space right now? We were positive on PFC at Rs 75 and REC at Rs 100. When we heard of the merger, we asked clients to book profit closer to Rs 125 on REC. We still think there is a little bit of murkiness on receivable from the discom but that could be a temporarily hiatus. Power is going to be a very strong space. At Rs 22, nobody was willing to touch Adani Power. Today the stock is hitting a two-year high. We still think that power generators are going to be in for good times. So is the case with utilities. A short-term hiatus will play out on PFC- REC. Right now, till we get more coverage or more news flow, for us it would be an avoid at these prices.

from Economic Times https://ift.tt/2DQLUMX