Prefer L&T, look at GMR Infra, GVK Power: Ambareesh Baliga

Ambareesh Baliga, independent market expert told CNBC-TV18, "Basically it is the India building story and that includes the infrastructure where most of the stocks and their balance sheets are in a quite difficult situation. Surely there are number of them where the balance sheet can be cleaned up going ahead. I am looking at couple of stocks in that sector, looking at power which has to grow otherwise India really cannot grow. There is a price correction if for example Mahindra or the Munjals which were being talked about had also come in at the same price possibly you could have seen the stock moving further."

"In power, I have been recommending NTPC and since I have recommended it has done decently well, may not be clearly in line with the markets. However I was recommending at the levels of Rs 130-135 and currently we are seeing levels of about Rs 150 plus," he said.

"In infra to capital goods, I will recommend stocks like Larsen & Toubro (L&T) which has performed decently well but other than that I would look at stocks like GMR Infrastructure and GVK Power & Infrastructure where I believe that the balance sheet can be repaired and they are available at decent levels. At the same time you also have certain pockets where you have stocks which have underperformed. For example I had recommended something like Fortis Healthcare just about a two and a half months back at levels of Rs 110-160 that had an extremely good sort of a return."

He further added, "In the cement pack I had recommended Ambuja Cements which was an underperformer at levels of Rs 210 -215 and after that we had seen the stock also performing. I would not buy Ambuja at these levels. You still have those pockets where valuations are still decent and stocks have underperformed. So you can pick up those stocks in a market like this where valuations are getting too expensive."