Prefer Axis Bank, SBI, KPIT Tech: Parag Thakkar

Parag Thakkar of HDFC Securities told CNBC-TV18, "In the largecap banking space we continue to like Axis Bank, IndusInd Bank, Kotak Mahindra Bank and on the PSU bank side we like State Bank of India and Bank of India. In the midcap space, you find winners and losers for example in information technology (IT) services, we like KPIT Technologies where we are sensing that worst is behind because their SAP business is turning around and that will get back to double digit margins plus they are largely present in the auto vertical which is going to provide 20 percent for them. From Q4 onwards we will see good traction in KPIT's numbers."

"On the real estate side we are seeing companies like Brigade Enterprises, Oberoi Realty, Kolte-Patil Developers. For example on Brigade has a market cap of Rs 2,000 crore, it has a rental income of Rs 170 crore that itself gives you a very comfortable margin of safety because rental income itself is Rs 170 crore and that is going to grow to Rs 230 crore, they have a development portfolio which can create pre-tax cash flow of around Rs 1,800 crore over the next three years plus they have two hotel properties in Bengaluru which does a EBITDA of Rs 70 crore. So, we clearly see 50 percent upside in Brigade Enterprises from here on," he said.

"Kolte-Patil Developers with a very clean balance sheet and very low net debt, the opportunities are there. In non-banking financial companies (NBFCs) space we like Cholamandalam Investment and Finance Company. It reported decent numbers and they are confident of a recovery beginning next quarter. In NBFC companies if the asset quality starts to recover, you will see very big delta in earnings."