ICICI Direct on Monday said it's upbeat on domestic stories like City Union Bank, Apollo Hospitals, Ramco Cement, Somany Ceramics and Jyothy Laboratories for 2019.

In an interview to CNBC-TV18, Pankaj Pandey, head of retail research, said, "We are entering 2019 with good macros bodes for the market, although the election anxiety could have some impact on markets. Moreover, the market too is an oversold territory and so this trend could reverse and get better as election-led anxiety ends."

The house is penciling in an earnings growth of 14.5 percent for this year and 22 percent for next year, which will largely be anchored by corporate banks.

"Overall, structurally things look positive for the market and if domestic macros are good, then the midcap and smallcap as a space should do well,” Pandey said.

"For City Union Bank, the house has a target price of Rs 225. Historically, it has been a consistent performer," he added, "however, outlook for some sectors like metals is not clear."