Look at Hero Motocorp, Hindustan Unilever: Harendra Kumar

Harendra Kumar of Elara Capital told CNBC-TV18, "We have been backing the urban discretionary theme right from January. General news is that the biggest theme that we are pushing, while the urban recovery in terms of job growth has already started trickling in. You can see that number in data consumption in four-wheeler sales. I think the rural recovery along with the monsoon regained traction. So the two sectors that are leading the market or supporting the markets are four-wheelers and you have consumption stocks which are doing extremely well now if you look at the fast moving consumer goods (FMCG) index.""So what we are seeing is that the urban recovery is getting priced in, the rural recovery start to get price it. So the mis-pricing out there is on Hero Motocorp from auto pack. So I think valuations are extremely comfortable, they have gone out and reported good margins, if you have a volume number that is meeting the street expectation, the stock could rerate significantly out there," he said."I think the other rural consumption theme very largely would be Hindustan Unilever despite all issues on valuation, that is one company that is going to monetize its huge big consumption book. So that is also currently very under-owned at this point of time and I think as they report the next quarter numbers, the stock will tend to rerate from here on."