Market Stability Forecasted: Sanjiv Bhasin Highlights Strong Fundamentals and Defensive Positions

According to Sanjiv Bhasin from IIFL Securities, the market looks good fundamentally. Public Sector Undertakings (PSUs) have done well, and the overall economic conditions are favorable. With oil prices down and bond yields falling, along with robust Indian demographics, the market seems stable.

Bhasin suggests staying invested in the market. Despite recent volatility due to election rumors, he believes the market will bounce back after the results. Even if the ruling party doesn’t get the same majority as before, a clear win should boost the market.

Focus on Quality Stocks

He recommends focusing on quality stocks during this correction phase. Bhasin is particularly positive about insurance stocks like LIC, ICICI Pru, SBI Life, and HDFC Life, which offer stability and good value.

Additionally, he expresses optimism about banks, especially HDFC Bank, and sees potential in mid and small-cap stocks like Rattan Power.

Regarding portfolio strategy, Bhasin suggests considering stocks with names like “Hindustan” or “Bharat” if the current regime continues. He advises being cautious with PSUs, as they might have already factored in future capex. Instead, he favors private sector stocks like HDFC, ICICI, and insurance companies.

Auto Sector Insights

In terms of the auto sector, Bhasin’s top picks include Maruti, Ashok Leyland, and Bajaj Auto. While he was bullish on M&M previously, he suggests taking profits now. However, he still sees potential in Maruti, Ashok Leyland, and Bajaj Auto, with expectations of significant upside.

In the Original Equipment Manufacturer (OEM) segment, Bhasin also mentions Motherson Sumi as a stock with potential for re-rating and strong performance.