Pick YES Bank, Tata Motors, SBI: Deven Choksey

Deven Choksey, MD of KR Choksey Securities told CNBC-TV18, "We are seeing that some of the banking names and non-banking financial companies (NBFCs) appear to be more promising. In a falling market, once again they give you an opportunity. What we have seen in the month of August is typical capitulation in the banking space and a bounce back thereafter around 25-30 percent in many cases. Now once again they have corrected yesterday and they are likely to correct a little more. In that fall probably you could pick up some of the private sector banks like YES Bank, IndusInd Bank and for that matter, even ICICI Bank and Axis Bank.”

“Within the public sector bank space, State Bank of India (SBI) looks more promising but remember I am saying these names more from the point of view that these companies are available closer to its good valuation, which is closer to book valuations in many cases and where the companies are having a lot of potential going forward,” he added.
“If we expect the policy levels to get corrected on the Reserve Bank of India (RBI) side going forward enabling the growth back into the system then in such situations banks will be the first beneficiary and they should possibly get the highest level of inclusion into the portfolio. So from that perspective also I am looking at some of these banks are battered down banks and I think the numbers are also giving comfort for investing given the margin of safety that offer in the current levels.”
“Likewise some of the NBFCs like IDFC and LIC Housing Finance also offer a good opportunity. Within auto space, Tata Motors kind of companies offers good opportunity. You have to select few companies across the sector within the lot and probably make the portfolio in the falling market."