Prefer Bajaj Auto, Infosys: Motilal Oswal Sec

Rajat Rajgarhia, Head-Research of Motilal Oswal Sec advises to prefer Bajaj Auto and Infosys. "Bajaj Auto will be a big beneficiary if currency remains at 60/USD plus. Their forwards would definitely have contracted at higher rates and exports are doing well for them," he adds.

Rajat Rajgarhia, Head-Research of Motilal Oswal Sec told CNBC-TV18, "Infosys and Bajaj Auto would be two stocks that I would like to put money in. Infosys is something where we have retained enough in the last six months, more so after we saw some confidence being returned in investors amongst the top management."

"If you look at this company three years back they used to grow their top line at 15 percent plus, margins used to be north of 30. Both in the last three years have changed where they have been growing at single digit growth and margins despite a currency appreciation of 40 percent has been almost come down by 500 bps. I think slowly they are reverting back to those two growth rates again. In large caps the most important difference is if you get the trend in the earnings changes right because at the beginning of the trend in the earning changes you need to buy into the stock and just sit tight, Infosys is one such name," he added.

"Bajaj Auto - this was the first quarter where we have started seeing growth being quite good. They will be a big beneficiary if currency remains at 60/USD plus. Their forwards would definitely have contracted at higher rates. Exports are doing well for them and somewhere in the domestic business I think this year you will see things bottoming out for them. Stock has almost remained ranged in this band for quite some time and while it has seen some rally of late, I think both Infosys and Bajaj Auto looks set to benefit from the currency depreciation and their own business model just reverting back to normalized growth rates."