Anand Rathi advises to buy on dips, suggests picks

Though markets are lying low, experts are advising to make best of it. In an interview to CNBC-TV18, Devang Mehta, Vice President and Head-Equity Sales, Anand Rathi Financial Services suggested that the current dip can be used as an opportunity.

In the largecap space, he likes Reliance Industries. Among the auto stocks, Mehta is betting high on Bajaj Auto, M&M, and Tata Motors in the long-term. He recommends Shree Renuka Sugars and Balrampur Chini in the sugar sector while in the midcap space he is positive on stocks like Zydus Wellness, Agro Tech Foods and Jyothy Laboratories. Below is a verbatim transcript of their interview with CNBC-TV18's Anuj Singhal and Latha Venkatesh. Also watch the accompanying video. Q: What is your sense of the current state of market? For the last two days, we have seen just a bit of a fall. Would you use that as buying opportunity or you think one correction is coming and that would be a better buying opportunity? A: I guess this can be used as an opportunity to buy and any dip in this market could be used as an opportunity to buy. What I feel is Nifty can be seen in a rangebound manner or maybe sluggish for some days, but this year would be very much invested as a year where you can see some sector specific as well as some stock specific moves. So, a lot of stock picking and choosing would have to be done, if one wants to earn in this market for this year. Q: All eyes are on Reliance. There is a mild outperformance in the first few days of the new year. What is your take on the stock? A: We feel Reliance from here is poised for a greater growth as the gross refining margins across Asia are on a rise and Reliance Industries tend to benefit from it. Though petrochemical margins were little bit of a laggard in the last quarter, but we feel that the stock from hereon could on go upwards and can take market forward from here. Looks as Reliance is a good investment opportunity at these rates. Q: Bajaj Auto, over last few days has seen 10% correction, for second month running, the monthly sales numbers have been below what markets expected. What is your sense of Bajaj Auto in particular and auto space in general? A: Generally in auto space, one has to be very selective at this point though we like some stocks like Bajaj Auto. Bajaj Auto though wouldn