Be wary of hot sectors; like IDFC,HDFC Bk: Sandip Sabharwal

Sandip Sabharwal of Asksandipsabharwal.com says the central bank's move to cut repo rate hints at a period of lower interest rates, and that is something investors are cheering. He believes the market is priced to perfection with a very little scope for disappointment. Given below are some stocks Sabharwal is bullish on:

IDFC & HDFC Bank I would say IDFC and HDFC Bank stand out in the financials space. IDFC is a huge beneficiary of the interest rate downcycle as it reprices its liabilities. So that is one stock which will do very well. HDFC in the run up to its qualified institutional placement (QIP) issue should do well and normally we see private sector banks when they raise a QIP, they do well prior to the QIP and post QIP also.

Ashok LeylandAshok Leyland is a clear winner in terms of the strategy it is following in terms of the success of its products and it is beating the markets. So that is one company which will do well.

Bharat Heavy Electricals Ltd (BHEL)I like BHEL because that is a company where expectations are very low and one can clearly see some signs of turnaround coming through. That is one company which will do well.