Prefer top pvt banks; see ITC under pressure: Taher Badshah

In an interview to CNBC-TV18 Taher Badshah of Motilal Oswal AMC shared his thoughts on the way forward for the market and some stock specific action.According to him the market could find it tough to make gains going forward until there is news on reform front or there are some other triggers, which start the investment cycle till then earnings could remain a bit concentrated.

However, he thinks the market ended on good note from point of view form FII data.

Stock specific, when asked if he would look at buying ITC on declines, he said the stock is likely to face pressure going forward because the regulatory issues will ensure that the valuations remain capped. Moreover the earnings growth too has moderated in recent quarters for the company.

Answering a query on his approach towards HDFC and HDFC Bank post the MSCI overhang, he said some of the recent developments around the HDFC Bank are positive both from the point of their limit getting regularized plus the fact that they are now planning to look at QIP which could be incrementally accretive to book value. According to him HDFC Bank is ready for the next round of growth. So from fundamental as well as technical view if this overhand on FII limit is resolved, it would be one of the best banks to buy. It is also significant part of their portfolio holdings, he addedHe is very upbeat on top private sector banks like ICICI Bank, Axis Bank, Kotak Mahindra Bank and they are the place to be in despite valuations.On the midcaps front, he has a bottom-up approach.Other interesting space could be the specialty chemical segment he said.