Here are a few stock ideas from Deven Choksey

As I see it, in some of the cases there is a distinct possibility of good quality borrowers finding the rate of interest at a bargain level for them which in a way is a good process although I am slightly disappointed with what the Reserve Bank of India's decision has been. I for one have believed that RBI had to take a decision to bring down the cost of funds in the economy in order to spur the investments and unfortunately that is not happening easily. However, the call is now on the banks. So we believe that some of the good quality banks in the corporate banking space could have relatively higher age compared to the peers in the public sector banks. So stay focused with quality names there.Sonia:  How would you approach Hero Motocorp?

A: The demonetisation pains are over. The results are better than the expectations for sure, even on the margin front, so that gives the confidence that going forward in this quarter and the subsequent quarter when the economy is doing well, you should be seeing higher amount of offtake and the numbers coming in from the two-wheelers and Hero would gain most out of that, so remain confident about it though not very sure as to what kind of price target we assume for this quarter but there is a possibility of around 5-7 percent upside in this particular stock in the coming months.Sonia: Do you expect any upside on Manappuram Finance?

A: The way in which the company has expanded its loan book and the capitalisation has taken place in the books, I think they hold a good case on growth side though on sequential basis we do believe that the company could end up recording a growth between 5 and 10 percent and with net interest margin (NIM) and cost remaining under control, one should see better bottomline performance from a company like Manappuram Finance and maybe other non banking financial companies (NBFCs) as well with the kind of success that they have found with the digital marketing of the loan portfolios as well as subvention pricing in the consumer goods. However, likes of Bajaj Finance and Capital First kind of companies could also remain relatively stronger in the NBFC space.Latha: Is there anything you want to pick in the auto ancillary space?

A: It's going to be three years of bull run which would start if the scrappage policy comes in full force because the new vehicle demand which gets generated probably it is not going to give the kind of a thrust to larger commercial vehicle companies but at the same time some of the auto ancillary companies are likely to remain in a strong supply kind of a situation.

However, we continue to like companies like Bosch and Bharat Forge from investment point of view. We believe that each of these companies over three year period horizon, if one looks at it holds a decent chance of giving a handsome rate of appreciation. So stronger the company better it would be in the auto ancillary space in this kind of a scrapping policy which is coming up though in general it may benefit many but stronger companies would get larger benefits out of this particular move that the government is bringing on scrappage side. Latha: Banks and NBFCs, any preferences now?

A: We continue to hold good view on some of the corporate banks  as well as NBFCs and we believe that companies like Bajaj Finance and Capital First within the NBFC space look interesting. They have shown a remarkable ability to reach to the consumer, in extent the credits in an effective manner. So in a way they are reaching to the market faster and at the same time their cost to reach to the customer is also relatively lower plus ability to garner funds at a relatively cheaper cost. Therefore, they are better placed among the NBFC space, so we continue to like them.

However, in corporate banks we like IndusInd Bank and we stay invested in this company.