Buy on corrections; like Kotak Mah Bk, TCS: MOS AMC

Yesterday's stellar rally seen on the Dalal Street could have been on back of some better than expected quarterly numbers after a disappointing start to the earnings from the IT space, says Taher Badshah of Motilal Oswal AMC. However, the advice to market participants is to buy on corrections and especially, large corrections if any, he says in an interview to CNBC-TV18's Latha Venkatesh and Sonia Shenoy.According to him, some of the midcaps too performed better in the quarter although may not have beaten street estimates.Talking stock and sector specific, he says the house is upbeat on the largecap IT stock like TCS, and MindTree and Tech Mahindra from the midcap space because they are well positioned for new transformation and to manage growth in the interim.From the private banking space the house has an exposure to Kotak Mahindra Bank. He expects the March quarter numbers for the bank to be in line with most other private banks. It is likely to report consolidated growth of around 22 percent for the quarter, he adds.However, he is not so bullish on the FMCG space that has been dragged by rural dynamics and weather conditions. So it is won't be easy to see a great upside for them, he adds.Badshah says two-wheeler companies have already corrected sharply and do not trade at high valuations, so make a decent picks from long-term perspective. Bajaj Auto showed some improvement in their April sales number but it is yet too early to say if the growth is sustainable. However, the company has shown good growth in three-wheeler space which is important to offset their sluggish export growth, he adds.