It is a confusing picture of the market for investors where on one hand various numbers are pointing to a macro weakness, while on the other hand there are expectations of bold reforms on the back of thumping majority for the government, said Dipen Sheth, head-institutional research, HDFC Securities, adding that global uncertainties around trade are keeping the market in check.

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“As brokers, the house would recommend buying autos. Hero MotoCorp looks like a very good longer-term bet or at least a medium-term bet,” he said in an interview with CNBC-TV18.

HDFC Securities is also upbeat on midcap stocks within amines and fluorochemicals sectors. SRF and Navin Fluorine look interesting in the fluorochemical space and from the amine space, the brokerage prefers Alkyl Amines and Balaji Amines, said Sheth.

According to him, Alkyl Amines is a multi-year hold even at current levels because the outputs that they manufacture feed into both agrochemicals, as well as pharma and so are set of many years of growth.

The house is also upbeat on mid-sized banks like DCB and City Union Bank along with Karur Vysya Bank. He said DCB and City Union Bank are very tightly-managed banks with own individual franchises in their SME lending. City Union Bank has a very strong footprint in southern India and DCB in western India, said Sheth. “Both these banks are very well set of their relatively small basis to grow sustainably over the next few years as the SME sector becomes a preferred target of credit as it finds its mojo in emerging India, as GST compliance improving with urbanisation improving and these banks have built up strong franchises there,” he said.

From the midcap IT services space, they like Zensar Technologies, Sonata Software. “Midcap IT by definition companies below USD 1 billion revenue will exhibit volatility in terms of their deal wins and their order flows and way they execute revenues,” he said. One has to look at companies with high-quality management, he added.