Discom scheme positive; experts now upbeat on NTPC, PSBs

Market experts, Sudip Bandopadhyay, Neeraj Deewan, Quantum SecuritiesBanking, SP Tulasian of sptulsian.com and technical expert Rajat Bose of rajatbose.com spoke about the way forward for the market post Bihar election outcome on Sunday.According to Deewan, if the Bihar election outcome is in favour of NDA then the market is sure to rally but in case it is not then it will be a knee-jerk reaction for a day or two and then it will back to tracking the fundamentals.Talking on the positive outcome from the discom revival package announced by the government yesterday, Bandopadhyay is upbeat on NTPC. It is a welcome steps which is likely to clear lot of issues for the distribution companies and banks exposed to their debt, he says. The company with its backward and forward linkages is a hold in ones portfolio, he adds.Giving his picks for the upcoming Diwali festival, Bandopadhyay says, one should look at Larsen and Toubro, and Persistent System from the IT space which is an excellent company and a buy at current levels.He also thinks Bosch is a good long-term bet.From the PSU banking space Deewan pick Bank of Baroda, State Bank of India and Punjab National Bank in that order. He is positive on them because the downside risk is less comparatively now, and upside can be prudentially very high over the next one-one and a half year. It could also be an end of non-performing assets (NPA) cycle which has been going down consistently and there should be some uptick happening there. “PSU banks should be part of the portfolio,” he adds. It also looks like worst is already priced in to Bank of Baroda.Bose says, State Bank of India (SBI) at current levels is definitely a buy. Buy for medium-term for target of Rs 295-315. SBI technically looks pretty good. Talking on SBI earnings, Bandopadhyay says, the banks seems to have found a grip on the asset quality issues at this stage. So, one could look at State Bank of India (SBI) maybe from a slightly long-term view but Bank of Baroda (BoB) is a stock where probably worst is already behind and it may be definitely worth buying into BoB at current levels.For more on their stock specific ideas watch video