Sheth is also excited about the bank recap plan, but said that it must be followed up with actions on Bankruptcy Code.
“The triggers are not yet visible and it looks like there is some profit taking. Uncertainty is the staple diet of the market and that should not worry us too much. To minimize risk, investors should look at stocks which offer individual margin of safety,” he said.
Dipen Sheth of HDFC Securities recommends looking for fundamentally strong stocks, even if it means looking outside the index ones. He is upbeat on Repco Home Finance and TeamLease Services.
Dipen Sheth, Head-Institutional Research, HDFC Securities is confident that with the current government in power, the politics and economics will converge. So the themes that would play out over the next two years would be housing, agriculture and rural infrastructure.
Indian IT companies have been "caught napping" by the shift in the digital space and the automation revolution but their shares reflect value on an absolute basis, believes veteran analyst Dipen Sheth.
"You can get better tax compliance, arguably lower corruption. If you have higher tax compliance, you might get lower tax rates," Dipen Sheth said.
Speaking to CNBC-TV18, Dipen Sheth of HDFC Securities says IT sector, which has been under pressure, has value over a long period of 1-3 years.
The chase of high growth has led to valuation skewness in the sectoral order of India's stock markets. So much that while investors have been out on a limb betting on NBFCs, they have been most downbeat on the IT sector.
The first quarter earnings season has started the results that are trickling in don't bear out any great news so far.
The global macro worries have been a persistent problem for India's pick-up. The Fed rate hike is looming and so is the Brexit threat, says Dipen Sheth, Head-Institutional Research at HDFC Securities. He also likes Cholamandalam Investment.
The Indian economy is a "lone bright star" in the global setup, aided by structural factors and a reform-minded government, says Dipen Sheth, Head of Institutional Equities, HDFC Securities.
We should look at Equitas as a small finance bank now and not really as a purely as a microfinance play, says Dipen Sheth, Head Institutional Research, HDFC Securities
Dipen Sheth, Head-Instl Research at HDFC Securities is of the view that one should Atul Auto on any fall.
Sheth is bullish on Infosys, saying the stock is in a bull market of its own, led by strong leadership. He feels with a steady improvement in quarterly earnings, the stock's valuation can increase from 16 times forward earnings to 20 times forward earnings.
It is difficult to be very constructive on the market but the scope for a large crack is limited, says Dipen Sheth, Head-Institutional Research at HDFC Securities.
Dipen Sheth, Head-Institutional Research at HDFC Securities feels that Maruti Suzuki may test Rs 4786.
Jyotivardhan Jaipuria, founder and MD of Veda Investment Managers, says over the next two weeks India will perform in line with global markets. The performance of global markets in turn will depend on policy actions of central banks â€” Bank of Japan and US Federal Reserve.
Dipen Sheth, head of institutional research at HDFC Securities says there is a storm brewing outside as well as inside India and this year is going to be volatile. Times are tough and the temptation to take few liberties on fiscal targets is high, but it would not be a good option, he adds.
Dipen Sheth, Head-Instl Research at HDFC Securities likes Asian Paints and feels that one may prefer Pidilite Industries.
We had bad news running for so long now--Greece,US,China,domestic economy--and it is all adding up now, says Dipen Sheth of HDFC Securities
Dipen Sheth of HDFC Securities is of the view that one may look at Majesco.
Dipen Sheth, Head-Instl Research at HDFC Securitiesis of the view that Navin Fluorine may test Rs 1800.
'Don't catch a falling knife' goes a popular investing adage that recommends against buying stocks that have fallen a lot recently. But Dipen Sheth, Head of Research at HDFC Securities, recommends you make an exception for bank stocks.
The world is slowing down and the US Federal Reserve is perhaps going to hike in December, so the markets will perhaps go nowhere for a while and that is okay, says Dipen Sheth of HDFC Securities
There is no reason why one should not grab Axis Bank at the current levels, suggests Dipen Seth of HDFC Securities. He urges investors to look at all parameters like NIMs, loan growth etc and not agonise over NPAs.