Mr Bhasin expects crude oil prices to hit $40 per barrel by the end of this month
Indian stock markets may have hit a bottom and pre-budget rally to 7,800 levels on Nifty may soon be on the cards, says Sanjeev Bhasin, executive vice president of domestic brokerage IIFL. According to Mr Bhasin, Nifty is unlikely to break 7,250 on the downside.
"Global concerns have already played out and going forward we think lot of pain from the foreign side may be over," he told NDTV Profit.
"Oil prices could be closer to $40 per barrel by this month end... We think this is a brilliant time to build portfolios. If you can ignore this volatility, you stand to make a lot of money," Mr Bhasin said.
Sanjeev Bhasin's Stock Picks:
1. Tata Elxsi, Mindtree should be bought at every correction. BEL and NBCC are other midcap stocks that can do well.
2. Reliance Capital/Reliance Infrastructure: These stocks can offer lot of value if investors hold them for three months. They can generate at least 25 per cent return. The two companies are selling assets to reduce their debt.
3. Cipla: There is value in the stock, hold it for at least one year.
4. Zee Entertainment Enterprises: It is a brilliant play on demographics and growth in advertising revenue.
5. SBI & ICICI Bank: These are real value pick in the banking sector. SBI is trading at less than its book value. ICICI Bank, at Rs 200, is quoting a price to book value of 1.4 times. Lot of asset quality problems are priced in.
6. ABB India, L&T, Siemens: There was a lot of pessimism in the capital goods space, but we are pleasantly surprised by their earnings. There could be good order flow for these three companies from the power sector.
7. BHEL: At Rs 130 level, the stock has lot of value. It has one of the highest margins in the capital goods space.
"Global concerns have already played out and going forward we think lot of pain from the foreign side may be over," he told NDTV Profit.
"Oil prices could be closer to $40 per barrel by this month end... We think this is a brilliant time to build portfolios. If you can ignore this volatility, you stand to make a lot of money," Mr Bhasin said.
Sanjeev Bhasin's Stock Picks:
1. Tata Elxsi, Mindtree should be bought at every correction. BEL and NBCC are other midcap stocks that can do well.
2. Reliance Capital/Reliance Infrastructure: These stocks can offer lot of value if investors hold them for three months. They can generate at least 25 per cent return. The two companies are selling assets to reduce their debt.
3. Cipla: There is value in the stock, hold it for at least one year.
4. Zee Entertainment Enterprises: It is a brilliant play on demographics and growth in advertising revenue.
5. SBI & ICICI Bank: These are real value pick in the banking sector. SBI is trading at less than its book value. ICICI Bank, at Rs 200, is quoting a price to book value of 1.4 times. Lot of asset quality problems are priced in.
6. ABB India, L&T, Siemens: There was a lot of pessimism in the capital goods space, but we are pleasantly surprised by their earnings. There could be good order flow for these three companies from the power sector.
7. BHEL: At Rs 130 level, the stock has lot of value. It has one of the highest margins in the capital goods space.
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