As the US, China and Asia-Pacific trends suggest that the demand for the base metals will go up, stocks in this segment are expected to do well, bucking the trend, according to Deven Choksey of KRChoksey Securities.

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Besides Titan, he was also positive on Tata Consultancy Services (TCS), SBI) and ICICI Bank stocks.

Choksey told CNBC-TV18 that: “Economic environment in US, China and Asia-Pacific is suggesting that the demand for the base metal is going to be relatively stable to higher."

"At the same time, even except this situation which is currently on, I think the relatively stable prices for the input as far as the energy prices are concerned, from that perspective too, I think stable input prices and better demand scenario resulting into higher amount of production and that is where the cycle has turned in favour of the metal commodities,” he said.

He added: “The cyclicality of these cyclical stocks, definitely I think should be read properly. If I am seeing the metal as a commodity and the prices along with, I find that they are in an up cycle already now.”

Recommending to buy Titan on dips, Choksey said: “They have seen a relatively better demand in the festive season in Q3. As a result of which the jewellery segment particularly is showing a better performance."

"So, going forward, I do not see too much of a change happening in this particular situation because currently being in the wedding season in the country, I think they continue to attract higher amount of footfalls. Q4 should also be equally better for the jewellery business in particular for Titan.”

Speaking about Infosys and Tata Consultancy Services (TCS), he said: “TCS already remains a strong company. For the large amount of growth that you can see in the market capitalisation, I think the larger investor would like to see the proxy in form of TCS."

Talking about the preferred choice between State Bank of India (SBI) and ICICI Bank, Choksey said: “SBI in the near-term looks clearer, ICICI Bank for the long-term continues to remain good. So, I think both these stocks should be there in the portfolio.”

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First Published:Jan 7, 2020 5:54 PM IST