Indian equity benchmarks BSE Sensex and NSE Nifty50 ended in the green touching a record high. Nifty ended above 18,400 and the Sensex ended up 249 points, led by auto, oil and gas, and financials. This was anticipated by market veteran and BSE member, Ramesh Damani. “I feel that this is a good time to invest. And instead of talking about — well the Queen recently celebrated a Platinum Jubilee before she died — and I think it's time to talk about those kind of numbers in the Sensex too. So I think I remain bullish, the undertone remains extraordinarily strong, according to me,” he said.

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At the current juncture, Damani believes there is a great opportunity in defence and rail stocks in the Indian market as well.

“The defence stocks had a great run-up. So I trimmed my positions, added to the cheaper ones, sold the more expensive ones. A couple of stocks , which have been long-term compounders in my portfolio, will continue to do well, Damani told CNBC-TV18. He pointed out how some PSU stocks have compounded over a 20-year period from market caps of a few hundred crore rupees to almost Rs 60,000 crore,”

Citing the example of Bharat Electronics, Damani said, "It was a Rs 20 stock with a Rs 2 dividend built in and Rs 160-crore market cap. Now it has a Rs 60,000-crore market cap and it could double from these prices too. So it has created long-term wealth. The mistake people often make is to bunch FMCG stocks versus all PSU stocks."

Damani added that “some of these even today are trading at single-digit multiples and almost 5-6 percent dividend yield. So, there's a very good picking there. And since the market now has gravitated towards those kinds of stocks, I think there could be a good upside in some of them,”

He also shared his mantra to be successful in the Indian markets: "Be a pig when conviction is high." A pig in market parlance refers to a high-risk — often impatient — kind of investor.

Also read: Ramesh Damani bullish on tech and railway-focused stocks in Samvat 2079

Talking about the stocks that he is betting on, he said that some new-age companies will do well over the long term. “We might have some exposure to some of the new-age companies but broadly speaking I would be more comfortable after even a further correction,”

Stocks are out of bloom now, as you call them, and will settle at more attractive levels. It is not my intention to dismiss them all. The food delivery business, the e-commerce business — these are very attractive businesses that create value over the long term. Nevertheless, I don't think investors should bet aggressively on them at this price point, he added.

Also read: 'The eighth wonder of the world is'— Ramesh Damani shares his mantra for success on Dalal Street

(Edited by : Shoma Bhattacharjee)