Hemang Jani on 8 large and midcap banks and IT stocks to go for now

economictimes.indiatimes.com:

Independent market expert Hemang Jani says, «among largecaps, continue to like SBI, ICICI Bank and HDFC also which after a long time is showing a little bit of traction. These are the names when it comes to the large cap names. In midcaps, we should focus on two names; IDFC First Bank, where we had an entry of a big investor. Also Federal Bank is delivering consistently good performance. IT is a value play. There is a little bit of a zigzag here and there based on what is happening in the US markets. But TCS on the largecap front and to some extent, some of the small midcap names, Tech Mahindra, Naukri, are the names where we continue to have a positive bias.»



The standout performers in trade yesterday were the PSU stocks which had a pretty strong run up. What is your assessment as to how they have moved and what is the outlook?
We have seen a big correction the day before and stocks actually corrected anywhere from 5% to 15% and the index itself was down about 3%. Yesterday it was a smart pullback. Our take is that one really needs to watch for some sort of a consolidation when it comes to the broader market because when an index has gone up by 35-40%, a 3% or 4% correction is actually very small.

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There is always some possibility of consolidation or correction and one needs to be a little mindful of that. However, at the same time, the index or the largecap stocks continue to show a lot of resilience even when we have volatility. For the time being, it would make more sense