Tata Motors shed 37 percent in current calendar year, one of the badly hit stocks among Nifty50.
The market has been on an upmove with Sensex and Nifty hitting record highs, though there have been some intermittent correction on profit booking which is always healthy for bull market, experts said.
The 50-share NSE Nifty has surged nearly 10 percent and has been holding above 11,550 levels and the 30-share BSE Sensex has been trading above 38,000-mark, up more than 12 percent in 2018, but it's not the same case with broader space. The BSE Midcap index is still down 7.5 percent and Smallcap index lost 12 percent year-to-date.
Currently, the market is in a great place if one invests with a 2-3-year perspective, though low-hanging fruits are not there and valuations are not at comfort levels, Sindhu Sameer, Co Head - Institutional Equity Sales, Emkay Global Financial Services told CNBC-TV18. "One should invest in equities for wealth generation."
Emkay's top buys are Ashok Leyland, Nestle, Aurobindo Pharma, Oracle Financial, HDFC Bank, Petronet LNG, HUL, SBI Life, ICICI Bank, SRF, Insecticides India, Sterlite Technologies, Jubilant Foodworks, Tata Motors, KEC International, Tata Steel and NBCC.
In terms of avoiding, he said one can avoid overvaluation stocks. As all global experts said, one should go for margin of safety.
Banks rebounded sharply after June quarter earnings, on hopes of improvement in asset quality, going forward. Nifty Bank rallied nearly 11 percent year-to-date, driven by private banks that gained 13.6 percent but PSU Bank index is still down 11 percent.
If one is patient and for long-term investor, meaningful reasonable returns are likely in banks, he feels.
Financials (NBFCs, insurance, MFIs etc)
Sameer said let's not draw binary as all these sectors will be participating. In fact, breadth of BFSI (banking, financials services and insurance) space and private banks will offer nice returns, going forward.
He believes metals space is the global subject and so it will remain volatile.
The stock shed 37 percent in current calendar year, one of the badly hit stocks among Nifty50.Sameer said it is difficult to say the worst is over for Tata Motors but the price correction might be getting to near-end. "The company has to align many geographies and once that happens, then the stock will start rising again; so one needs to be patient."