What are you eyeing? Banks, metals or auto?

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What are you eyeing? Banks, metals or auto?

In an interview with CNBC-TV18's Sonia Shenoy and Ekta Batra, Radhika Gupta, director at Forefront Capital Management gives her fundamental view while Hemen Kapadia gives his technical view on various stocks/sectors.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

The 50-share NSE Nifty extended losses on the back of further sell-off in financial, FMCG, realty, capital goods and select metal companies' shares. TCS, Tata Motors and Reliance Communications were also down. The index was near to 5,950 level while the Sensex shed more than 100 points amid volatility.

Heavyweights SBI and ICICI Bank lost 2-3%. However, indices were getting support from oil & gas, select technology and auto company shares along with Bharti, Sun Pharma, Hindalco, ACC and Dr Reddy's Labs, with limited losses.

In an interview with CNBC-TV18's Sonia Shenoy and Ekta Batra, Radhika Gupta, director at Forefront Capital Management gives her fundamental view while Hemen Kapadia gives his technical view on various stocks/sectors.

Here are the expert views on various stocks/sector:

On SBI:

Gupta finds that even though there has been a lot of talk that because of FII interest, banking is a little bit overvalued, which it is, but even if you look on the PSU side, if you look at the historical valuations its trading at and the one that most of the stocks are trading at, the premium is not that substantial and she still sees enough upside for investors out there to capture.

Gupta believes that if you have a kind of time horizon relatively and want to invest in this sector then there is more upside to be captured in the PSU sbanking space because there is a substantial valuation gap today between PSU and private sector banks that should be bridged. She says, "I would recommend on the PSU side, SBI is a little on the expensive side. I recommend booking out of SBI and move into some other smaller PSU banks where he will see that upside over the next three-five years, into something like an Andhra Bank or Canara bank."

On Hindalco :

Kapadia sees a price target of around Rs 238 and says the investor should keep a stop loss. "One can expect a price target of Rs 238 by the end of the series or even maybe before that," he says.

On Tata Motors :

Gupta goes as far as saying that if an investor had to hold on to one stock in the auto category today, she would hold Tata Motors. "Autos have run up as a pack so it's natural to get worried about the valuations but from a valuation perspective and from a company fundamentals perspective, particularly, given the way JLR which everyone was concerned about has worked out." She adds the stock is a no brainer to hold onto if you have got a long-term horizon.

Kapadia says we are in a longer-term uptrend so he doesn't think there is much to worry about. "We are at all time highs so we don't have any known levels to look out for but yes, if you use Elliot Waves projections, one can look at a price target of around Rs 1,800 in the next two-three years so it's a clear hold," he predicts.