Be overweight on 3 largecaps now; bet on 2 midcap dark horses: Sanjiv Bhasin

economictimes.indiatimes.com:

Sanjiv Bhasin, Director, IIFL Securities, says “ this is the time to start to get overweight on Reliance, Apollo Hospital and ICICI. Apollo Hospital is seeing peer groups which are getting listed and their market cap move up whereas this stock has done nothing. Bhasin further says Tata Tele would be the first of two midcaps which are dark horses. The midcaps may be a little frothy, but there is a lot of value. The other dark horse is JP Power. JP Power last quarter came out with an EBITDA profit of 450 crore.

Is it getting a bit more difficult to find gems and dark horses because a lot of these stocks have already seen a massive runup?
Well it will always be a glass half full or half empty. Ask those people who are sitting and waiting for that inevitable correction. Corrections do not happen by choice and money is not made by default. It is only made by staying invested. There could be a lot of froth on the midcaps but who is to answer? The type of flows we are getting into mutual funds are all directed towards that.

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After Prime Minister Modi specified PSUs, now obviously the best play has been seen in defence, power and railways. There could be a lot of froth but our job is to find stocks which make money and we still have two dark horse ideas which we will give you. But now is the time for largecaps to definitely outperform. Firstly, I am bullish, I think 20,000 is coming in this month itself. And you could see some consolidation/profit booking in mi-caps.

20,000 this month