Infy a preferred bet in IT; Tata Motors, Ashok Leyland top auto picks: Rahul Shah

economictimes.indiatimes.com:

Rahul Shah, VP-Equity Advisory, MOFSL, says “we have seen a few pockets here and there and most of the midcap IT companies have rallied. A lot of them have hit a 52-week high as well. I feel that largecaps need to catch up. So I prefer Infosys and HCL Tech in the entire basket.”What has been your takeaway from the auto sales data clocked in so far? How are you anticipating that players from this space are likely to perform in the long haul?The way the markets have been and if you look at the auto sales numbers in the last four-five months, the trend has been quite good and this month's number also comes as per Street estimations. I do not see any major correction or any major trend. Post Q4 numbers, most of the stocks have rallied 10-15% and we continue to remain bullish on stocks like Tata Motors with the combination of EV plus passenger vehicles plus the commercial vehicles. All these three factors remain quite strong. In commercial vehicles, it looks like a revival is coming back and that is where Ashok Leyland remains a top bet. Q4 numbers were also quite encouraging. So, these two stocks remain preferred bets in the entire auto pack.Why is Hero MotoCorp disappointing? Just when we thought things are turning around, the numbers continue to disappoint. If you look at the two-wheeler play, two things come to mind. One, Hero's numbers have been quite modest vis-à-vis its peers and secondly, the EV play which will now come back into Hero as well and valuations are as per 15-16 times earnings. So, the risk versus reward gives a favourable play but the preferred bets would be in passenger vehicles.

Missed the bull rally? You still have chance in IT, pharma stocks: Sumeet Bagadia

Infosys is down about 8%