Investors should look at banks that are witnessing the easing of stress, says Gurmeet Chadha, Co-Founder & CEO of Complete Circle Consultants. In an interview with CNBC-TV18, Chadha said that he is bullish on Axis Bank and ICICI Bank.

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“I would prefer Axis Bank, ICICI Bank from an incremental allocation perspective. One can also look at some of the banks where we are possibly seeing the heightened stress ease out something like a Bandhan Bank despite the run-up or an IDFC First Bank. Also some of the HFCs like Can Fin Homes. So look at more value bargains where we are seeing some signs of stress easing and probably reduction of provisions,” Chadha said.

He is positive on companies that report real turnaround in volumes rather than just ‘hope trade’.

On Indian Hotels, he said, “Indian Hotels looks good, the occupancy levels have increased, they have weathered probably the worst period. If you look at their subsidiary Ginger, the occupancy is about 55 percent. The average realizations have improved, they have done some innovative steps on online food delivery, hospitality at home so that could be looked at.”

Chadha is of that view that was just the right cycle to look at the metal sector.

“Tata Steel looks good, even some of the integrated commodity players like Hindalco can be good tactical short term play,” he added.

Watch this video for more.

(Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)

(Edited by : Ankit Gohel)

First Published:Nov 25, 2020 12:23 PM IST