Apurva Sheth, Head of Research at SAMCO, has identified two standout stock selections for the current day: HDFC Bank and Kotak Mahindra Bank.

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Sheth began with a bullish view on private sector banks, specifically highlighting HDFC Bank and Kotak Mahindra Bank. Both these financial institutions have been considered underperformers for some time, but Sheth saw substantial potential. HDFC Bank, for instance, has a formidable support level at Rs 1,500, making it an attractive investment opportunity.

From a fundamental perspective, HDFC Bank is available at enticing price-to-book valuations, making it a mouth-watering prospect for long-term investors. Sheth emphasised that the bank is currently on a branch expansion spree, a move that bodes well for its future prospects. HDFC Bank and Kotak Mahindra Bank are two stocks to watch closely at the current levels.

Read Here | HDFC Bank, Kotak Bank, SBI continue to get analyst backing despite underperforming in 2023

Speaking about Reliance Industries Ltd (RIL), Sheth highlighted that Reliance has been trading in a range of Rs 2,000 to Rs 2,600 for nearly two years. Currently, it hovers around the middle of this range, at around Rs 2,300. According to him, this is an opportune moment to consider investing in RIL.

He suggested that the stock is at an attractive level and underscores the potential for growth. Large-caps, according to Sheth, are currently the most exciting segment of the market. While small-caps have experienced significant rallies, large-caps are poised to drive the Nifty forward, particularly leading up to the elections.

Sheth also shared his views on the IT sector. He noted that IT stocks have bottomed out after a period of stagnation. A significant point of interest is the divergence between the NASDAQ and the Nifty IT index, which moved in tandem following the initial wave of COVID-19 but decoupled around October last year.

While the NASDAQ continued its upward trajectory, Nifty IT did not participate to the same extent. According to Sheth, this discrepancy represented an opportunity for investors. He suggested that Nifty IT and large-cap IT stocks should see an upward trend, as most of the negatives affecting the sector have already been priced in.

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