IDBI Bank, HDFC Bank, ICICI Bank: Here's what Sunny Agrawal of SBI Securities says on these 3 stocks
Top stock picks for today: Sunny Agrawal, Deputy Vice-President and Head of Fundamental Equity Research at SBI Securities, on Monday told BT TV that investors need to be stock specific rather than looking at the broader indices for trading in the month of August.
- Aug 14, 2023,
- Updated Aug 14, 2023 11:12 AM IST
Sunny Agrawal, Deputy Vice-President and Head of Fundamental Equity Research at SBI Securities, said investors need to be stock specific rather than looking at the broader indices for trading in the month of August. Agrawal on Monday told BT TV that lenders are the backbone of any economy and if we poised to grow at 7-8 per cent in a real-term GDP (Gross domestic product), banking credit will at least grow by 10-12 per cent, assuming 1.4-1.5 multiplier effect.
In the private banking space, he picked HDFC Bank, ICICI Bank and Axis Bank. For HDFC, he said there might be some overhang in terms of the merger uncertainties but the lender offers a decent value at current juncture. "ICICI Bank and Axis Bank have corrected after June quarter numbers. That said, one can expect up to 10-15 per cent returns in ICICI Bank and Axis Bank," he added.
In the PSU (Public sector unit) banking space, Agrawal said a lot of value lies in Bank of Baroda and Canara Bank at the current juncture.
"We also like semi-PSU IDBI Bank in terms of valuations. Its asset quality has improved significantly over the last 2-3 years. All the operations metrics, such as NIM (Net interest margin), CASA (Current account savings account) and ROA (Return on asset), have improved," he mentioned.
The market expert also said the automobile and automobile ancillary sectors are witnessing a strong rebound.
His top picks in the auto space were Maruti Suzuki India, Ashok Leyland, Eicher Motors and TVS Motors. In the auto ancillary segment, Agrawal's top bets were RK Forging, Gabriel India and Bosch.
PNC Infratech, RVNL, RailTel, Ambuja Cement and UltraTech Cement were also among his other top picks.
Meanwhile, Indian equity benchmarks opened lower today, taking cues from the global markets. Mid- and small-cap shares were down as Nifty Midcap 100 fell 1.32 per cent and small-cap dived 1.80 per cent. On the global front, Asian markets struggled today.
Back home, investors would be keenly watching retail inflation data, due later in the day, for cues during this holiday-truncated week as earnings season draws to a close. Corporate earnings season would likely end today, with consumer giant ITC and several other companies scheduled to report quarterly results.
All the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the red. Sub-indexes Nifty Metal, Nifty Bank, Nifty Financial Services, Nifty Auto and Nifty Consumer Durables were underperforming the NSE platform by falling as much as 2.39 per cent, 0.82 per cent, 0.97 per cent, 1.37 per cent and 1.06 per cent, respectively.
On the stock-specific front, Adani Enterprises was the top loser in the Nifty pack as the stock cracked 4.25 per cent to trade at Rs 2,431.50. Adani Ports also fell 3.22 after Deloitte has resigned as auditor. Further, Apollo Hospitals, JSW Steel and Tata Motors fell up to 2.74 per cent.
In contrast, ONGC, Dr Reddy's, Infosys, Sun Pharma and Hindustan Unilever were among the top gainers.
The overall market breadth was negative as 1,970 shares were declining while 1,009 were advancing on BSE.
On the 30-share BSE index, HDFC Bank, SBI, Tata Consultancy Services (TCS), Tata Motors, ITC, Bajaj Finance and Bajaj Finserv were among the top laggards.
Also, Carysil Ltd, PNC Infratech, Nykaa, MSTC, Muthoot Finance, Finolex Cables and Tarsons Products slipped up to 9.96 per cent. On the other hand, DB Realty, PTC Industries, Kirloskar Oil Engines and GRSE jumped up to 8.06 per cent.
Also read: ITC to share Q1 results today. Profit to growth in double-digits, margins to expand
Sunny Agrawal, Deputy Vice-President and Head of Fundamental Equity Research at SBI Securities, said investors need to be stock specific rather than looking at the broader indices for trading in the month of August. Agrawal on Monday told BT TV that lenders are the backbone of any economy and if we poised to grow at 7-8 per cent in a real-term GDP (Gross domestic product), banking credit will at least grow by 10-12 per cent, assuming 1.4-1.5 multiplier effect.
In the private banking space, he picked HDFC Bank, ICICI Bank and Axis Bank. For HDFC, he said there might be some overhang in terms of the merger uncertainties but the lender offers a decent value at current juncture. "ICICI Bank and Axis Bank have corrected after June quarter numbers. That said, one can expect up to 10-15 per cent returns in ICICI Bank and Axis Bank," he added.
In the PSU (Public sector unit) banking space, Agrawal said a lot of value lies in Bank of Baroda and Canara Bank at the current juncture.
"We also like semi-PSU IDBI Bank in terms of valuations. Its asset quality has improved significantly over the last 2-3 years. All the operations metrics, such as NIM (Net interest margin), CASA (Current account savings account) and ROA (Return on asset), have improved," he mentioned.
The market expert also said the automobile and automobile ancillary sectors are witnessing a strong rebound.
His top picks in the auto space were Maruti Suzuki India, Ashok Leyland, Eicher Motors and TVS Motors. In the auto ancillary segment, Agrawal's top bets were RK Forging, Gabriel India and Bosch.
PNC Infratech, RVNL, RailTel, Ambuja Cement and UltraTech Cement were also among his other top picks.
Meanwhile, Indian equity benchmarks opened lower today, taking cues from the global markets. Mid- and small-cap shares were down as Nifty Midcap 100 fell 1.32 per cent and small-cap dived 1.80 per cent. On the global front, Asian markets struggled today.
Back home, investors would be keenly watching retail inflation data, due later in the day, for cues during this holiday-truncated week as earnings season draws to a close. Corporate earnings season would likely end today, with consumer giant ITC and several other companies scheduled to report quarterly results.
All the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the red. Sub-indexes Nifty Metal, Nifty Bank, Nifty Financial Services, Nifty Auto and Nifty Consumer Durables were underperforming the NSE platform by falling as much as 2.39 per cent, 0.82 per cent, 0.97 per cent, 1.37 per cent and 1.06 per cent, respectively.
On the stock-specific front, Adani Enterprises was the top loser in the Nifty pack as the stock cracked 4.25 per cent to trade at Rs 2,431.50. Adani Ports also fell 3.22 after Deloitte has resigned as auditor. Further, Apollo Hospitals, JSW Steel and Tata Motors fell up to 2.74 per cent.
In contrast, ONGC, Dr Reddy's, Infosys, Sun Pharma and Hindustan Unilever were among the top gainers.
The overall market breadth was negative as 1,970 shares were declining while 1,009 were advancing on BSE.
On the 30-share BSE index, HDFC Bank, SBI, Tata Consultancy Services (TCS), Tata Motors, ITC, Bajaj Finance and Bajaj Finserv were among the top laggards.
Also, Carysil Ltd, PNC Infratech, Nykaa, MSTC, Muthoot Finance, Finolex Cables and Tarsons Products slipped up to 9.96 per cent. On the other hand, DB Realty, PTC Industries, Kirloskar Oil Engines and GRSE jumped up to 8.06 per cent.
Also read: ITC to share Q1 results today. Profit to growth in double-digits, margins to expand