Home / Business and Economy / Banking Dip? Sharma Sees Buying Chance in HDFC, ICICI
Banking Dip? Sharma Sees Buying Chance in HDFC, ICICI
17 Jan
Summary
- Sharma favors HDFC Bank and ICICI Bank for value investing opportunities.
- Long-term IT stocks like Infosys and Birlasoft are considered strong prospects.
- Defence stocks face caution due to excessively stretched valuations.
Rajat Sharma, CEO of Sana Securities, recommends a selective investment approach, focusing on value and long-term fundamentals. He sees current dips in HDFC Bank and ICICI Bank as attractive entry points, especially with upcoming results and potential tax relief for FIIs. Sharma highlights these banks' strong franchises and favorable valuations.
His top sector for long-term investment is IT, with Infosys and Birlasoft being favored due to their AI capabilities and platforms. Sharma believes the sector is undervalued relative to its future potential, despite not being cheap by historical standards. He plans to hold these investments for five to seven years.
Conversely, Sharma expresses caution regarding defence stocks due to stretched valuations, expecting any policy-driven rallies to be temporary. He sees potential in the FMCG sector, where recent corrections and easing competition could lead to earnings-driven upside for companies like HUL and ITC.
