Sanjeev Prasad, Senior Executive Director & Co-Head at Kotak Institutional Equities told CNBC-TV18, "We would be looking at IT names more favourably. Infosys and Tech Mahindra would be my two picks, which will do well in this quarter result season."
He further added, "On the sell side we can take any of the banks which have a lot of exposure to corporate debt. My sense would be look at Axis Bank, ICICI Bank, YES Bank; any of those guys will have some amount of issue this quarter. More importantly, everybody knows things are bad as far as corporate India is concerned and the amount of debt issues, non-performing liabilities (NPL) issues outstanding over there. The more the bank continues to delay showing the real numbers, whatever there maybe in terms of NPL issues, the more the market is going to derate the stock."
"If you look at some of these private corporate oriented banks, you can see a large amount of derating which has taken place over there. So the market is obviously concerned about potential NPLs. Maybe this is a quarter when you will finally start seeing some stress in the balance sheets of these banks," Prasad said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
