Prefer PSU stocks, says Siddharth Bhamre

Siddharth Bhamre of Angel Broking told CNBC-TV18, "If you look at how this government has been functioning with the reforms, they are targeting some basic stuff like oil & gas. Power is something which one should look at whether some power reforms would come or not; that is one sector which one should look at."

"A lot of people are bullish on FMCG. We are not so bullish on FMCG at current level. Some extra taxation should come over there; that should be looked from a negative perspective. I am not optimistic anything which would come on banking. Banking should be looked from a negative perspective," he said.

"One should stay light in infrastructure because FIIs are not going long. In power or related space if I have to look at something then Tata Power is one stock which I feel has been hammered because of what was happening in Delhi and the perception about people that would happen in Delhi. I think the stock deserves to be in Rs 95 or probably three figures. Disclaimer, that we have recommended to our clients aggressively this stock around Rs 84-85 levels. That is one stock which I would like to play with positive bias."

"There are a lot of natural resources companies like NMDC and others where we would suggest there maybe something which would come in this Budget. That is where Coal India, NMDC are the stocks which can give you good returns."