Got a buying list in this down cycle? Here are some of Dipan Mehta’s favourites

economictimes.indiatimes.com:

Dipan Mehta, Director, Elixir Equities, says “we are seeing a very good traction in the banking and NBFC space. IDFC First Bank came with a very, very decent set of numbers well beyond the peer group. Within the auto industry, Maruti came with a very good set of numbers and we are looking forward to Eicher Motors numbers.

In the capital goods space, we like Praj Industries as well as L&T. Broadly, we are focused on domestic-focused companies.”A very smart recovery and actual buying on dips or covering of short positions seem to be doing the trick. If indeed this correction of dip would have accelerated, this would have been one of the most anticipated and expected corrections in recent times. Is it not, people are waiting with their buying list because 90% of the people we spoke to in the last two months were cautious. So obviously expectations of a correction were high. Were you expecting a dip too?We are in the new phase of a multiyear bull market and such corrections are to be expected; timing of it is difficult to figure out but definitely if the market stops to go up, then automatically we are going to have the weaker hands trying to sell off and book profits and that is what we are seeing at this point of time.

If you scan the entire news flow, there is nothing really negative so as to warrant a correction but such is the nature of stocks; for no reason they go up or go down and this is what is being played out over here. I agree with you that the bulls have been waiting for an opportunity like this, investors who are underweight equity who could not get money to work in the last few weeks or so, will take this opportunity with both hands, especially the foreign institutional investors. I am pretty keen to know