HDFC Bank to give 25% returns in one year: Srivastava

Ajay Srivastava, CEO of Dimensions Consulting feels HDFC Bank may go down by another Rs 30, but over a year it will give you 25 percent returns, he adds.

Srivastava told CNBC-TV18, “The market has got two segments of investor population and two dynamics. The big dynamics deals with the bigger players which are the index stocks. They will still give the best returns over the next 12 months and the moment there is a correction, buying comes back, like we saw in HUL where buying interest renewed once it saw a big correction.”
 
He further said, “The IT stocks haven't come down from their recent highs. The HDFC twins are close to their historic highs and Mahindra & Mahindra (M&M) is at a historic high. So you are not seeing correction in those stocks and there is a lot of money waiting to enter those stocks as well. The moment you see correction, people come into the stocks.”
 
“The other is the non-index stocks. The situation there is that you are going to really cherry pick. You can say all are bad but, I don't think that is true and not everything is bad. Some are good like MCX, Financial Technologies, Tata Global Beverages, Havells India and United Breweries. These are good stocks there,” Srivastava added.
 
He said, “What has happened is that people are taking big trading risks on an equity investment platform. Suzlon Energy, IVRCL are stocks where you need to get in and get out. If you held up on your position, you will end up making losses and that is a given in those stocks because they were not quality stocks.”
 
“However, I still say that till Foreign Institutional Investor (FII) is backing this country and the government is all out to welcome them, do not exit. In fact, the time to rebuild keeps coming and the market gives you opportunity to enter every time. That is the beauty of this market.”
 
Srivastava said, “People who get left out need to enter, you don't feel bad about entering the mainline. Let us say HDFC Bank, it may go down by another Rs 30 but, over a year it will give you 25 percent returns. So be careful, use this correction. I am saying don’t get despondent but use the correction to rejig your portfolio and move into stocks you want to be there with.”