Infosys is still UBS Sec's preferred bet. Learn why

The market of late has been whisking in either direction on the back of mixed news. Suresh A Mahadevan head of India research at UBS Securities feels that the indices have been afloat on resilient S&P, carry trade and the belief that negatives have been priced in earlier, but that is not the case. "They have been ignoring marginal negative news like crude and disappointing earnings, which may cause a slight (5-10%) pullback," he told CNBC-TV18 in an exclusive interview.

However, these declines, Mahadevan said, should be used to buy select stocks. "Investors need to have a stock-specific approach. The broad market may have only 10% gain left, perhaps by end of the year, whereas, specific stocks could do much better than that."

Advising clients to buy Infosys on declines, he says, "Their disappointment is quarter specific, so we are not too worried. Also now that TCS trades at 13-15% premium to Infosys, maybe Infosys is still the stock to buy."

He is positive on L&T and BHEL in the infrastructure sector and Nagarjuna Construction and GVK Power in the mid-cap space. Heavyweight Reliance Industries holds a