Moneycontrol
Last Updated : Jan 18, 2018 11:06 AM IST | Source: CNBC-TV18

HDFC Sec’s Dipen Sheth sees tide turning for IT; likes Cadila among pharma names

Among specific names, he is upbeat on HCL Tech, with durable growth prospects and ‘mouthwatering’ valuations.

CNBC TV18 @moneycontrolcom

Another day. Another record high for the market, as Sensex soared over 300 points, while the Nifty climbed comfortably above 10,850-mark.

Financial stocks fulled the rally in early trade as investors cheered the likelihood of introduction of 100 percent FDI in banking.

Banking indices were up around 1-2 percent in the early trade, led by gains in Punjab National Bank, Federal Bank, State Bank of India and IDBI Bank, among others.

The development brought the question up on whether the Bank Nifty had found its mojo back?

“The talk of FDI is interesting. Having said that, PSU banks are still fundamentally weaker than private sector banks. They will continue to take the market share,” Dipen Sheth, Head-Institutional Research at HDFC Securities told CNBC-TV18 in an interview.

Speaking on other sectors, Sheth is constructive on the IT space as he believes the tide is turning. “US economy taking off could augur well fo the Indian IT sector… in fact largecap IT names will also catch up to the rally in midcap IT space,” he told the channel. Among specific names, he is upbeat on HCL Tech, with durable growth prospects and ‘mouthwatering’ valuations.

Meanwhile, in the pharma space, he feels Lupin has made a bottom now, while Cadila Health is best-placed stock for safe investors.

Among fast moving consumer goods (FMCG), he sees a strong trajectory for Hindustan Unilever from here. “One needs to take HUL's Q3 volume growth of 11% with a pinch of salt,” he said. Having said that, he believes the stock is a well-placed one.
First Published on Jan 18, 2018 11:06 am
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