Nifty Set To Hit Record High, Buy State Bank of India: Sanjeev Bhasin

Sanjeev Bhasin, executive vice president - markets & corporate affairs with IIFL, says investors should buy on dips in markets as the Nifty is likely to scale new highs by the end of this calendar year. Midcap and small cap stocks will outperform in this rally, he added. (Watch)

Stock Talk 

Buy oil marketing companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum, which reported excellent numbers. These companies are getting leverage as far as pricing goes, which has resulted in better gross refining margins. HPCL numbers stood out among the OMCs. Investors should look to buy these stocks on declines. 

Buy Bharat Electronics: This stock has been our top pick around Rs 1,000 and it can go up to Rs 1,500. Numbers on EBITDA front are far ahead of the Street estimates. It is a monopoly stock and will be a key beneficiary if government's 'Make in India' plan plays out well. Investors can buy this stock around Rs 1,050-1,100 for target of Rs 1,500. 

Buy Engineers India: This stock is a good buy around Rs 171. 

Accumulate PSU Banks: We are unlikely to see high provisioning for non-performing assets going ahead and come FY17, these banks should see write backs on back of bankruptcy law. Investors should buy these stocks on dips as value is emerging in PSU banks. Canara Bank, Punjab National Bank, Bank of Baroda and State Bank of India should be accumulated on any decline for time frame of one year. 

Buy IndusInd Bank, Yes Bank: There can be outperformance in these two shares. We have been bullish and given the balance sheet performance and outperformance on net interest income (NII) and net interest margins (NIMs) front, these two stocks can be re-rated. Investors should look at buying these stocks on decline as these can be in sweetest spot going into FY17.