PSU banks top pick: Neeraj Deewan

Neeraj Deewan of Quantum Securities told CNBC-TV18, "We are looking at financials, they are top pick for us, then comes infrastructure, auto ancillary and capital goods. In banking space we are very clear that public sector undertaking (PSUs) is the one where you will make money over the next couple of years. So PSU banks would be top of the list including Canara Bank and stock like Bank of India. Though everyone would prefer State Bank of India (SBI) and Bank of Baroda, these two definitely are the top preferred banks but if you come little lower down the list then Bank of India and Canara Bank is also in our buy list."

"In infrastructure space, Larsen & Toubro (L&T) corrected a lot in the last few trading sessions, so L&T would be the top buy there followed by stock like Crompton Greaves. In finance companies. Power Finance Corporation which saw a good correction rebounded today. This short-term volatility may continue in this stock. However for the longer-term perspective these are still not expensive and with interest rates happening and investors coming back, these stocks should do very well in next couple of years," he said.

"In auto ancillaries, stocks like Ahmednagar Forging which are in our list, JK Tyre is giving good returns now. So, all these stocks, as a disclaimer that we cover them as a research idea, even our clients are invested in this. Even I and my other directors could be invested in these stocks."