Sanjiv Bhasin of IIFL expects at least 5 percent downside in IndusInd Bank and has HCL Tech as the top IT pick.
Sanjiv Bhasin of IIFL told CNBC-TV18, "The environment is tough and the margins are getting hurt because everyone is in that same gamut of retail lending. IndusInd Bank was supposed to be much better because of the commercial vehicle cycle. If you see commercial vehicle, particularly if you see blockbuster numbers from Ashok Leyland on a month-to-month basis. So, I think it is a bit disappointing and given the stressed valuations I would expect another 5 percent off at least on that stock."
"The real star is IDFC Bank, it is up 35 percent. So, I think there is a lot of action on mergers and you have to be really digging your heals into what is actually value and what is growth. So, it is a mix bag."
"Coming specifically to IndusInd Bank, I think the run-up is so strong on the back that any type of margin increment you see, if it disappoints slightly also from the expected level you will see some sort of weakness in the stock."
"We will keep coming out with ideas whether it is 10,500 or 10,700. Even though the Nifty looks stressed there will be certain amount of stocks. So, clearly Infosys has been darling. From Rs 900 it is up 15 percent and still looking strong. But our top pick over there would be HCL Technologies. We still think HCL Tech will beat the margins front and on the volume front also and show you better growth than the other majors," he said.