Good time to buy on dips; like 2-wheelers, staples, banks: Elara

Domestic institutional investors are still buying in a big way and a check with foreign institutional investors also suggests they see the recent market decline as a temporary blip and are keen to pick up quality stocks, says Harendra Kumar of Elara Capital. There is possiblity of a typical pre-Budget rally in mid-January and we are also advising investors to invest on dips, Kumar tells CNBC-TV18 in an interview. He believes the demonetisation move will strengthen the rural economy as it leads to good distribution of wealth. It is time to move your investments from discretionary to staples, he says, adding two-wheelers, staples and banking are sectors they will be keenly watching for investments. Among two-wheelers, Hero MotoCorp is his top pick as it is expected to benefit from the rural play as well as upcoming UP elections. Maruti Suzuki is another auto stock he is positive on but says it may not gain as much as Hero. Watch video for more...