SBI & HDFC Bank: What Vinit Bolinjkar of Ventura Securities says on these 2 stocks

Vinit Bolinjkar, Head of Research at Ventura Securities, on Wednesday said market may continue to move higher and a dip in the domestic benchmarks could be followed with renewed buying at lower levels. On the stock-specific front, the market expert selected State Bank of India (SBI) and HDFC Bank Ltd as his top picks from the banking space.

"Both the lenders (SBI and HDFC) have got phenomenal RoE (Return on Equity) and have underperformed in the last six months. There's a nice catch-up trade happening," Bolinjkar told Business Today TV.

For SBI, he said the bank's subsidiaries are also performing well. "We believe that there could be a 50 per cent upside from current levels," the market veteran said. SBI shares were up 0.65 per cent at Rs 612.35.

On HDFC Bank, Bolinjkar said investors can buy the counter at current market price from a long-term perspective. HDFC Bank's stock was down 0.10 per cent at Rs 1,621.80.

Meanwhile, Indian equity benchmarks continued their record upward run for the third straight session today, led by gains in energy, pharma, consumer and banks. The 30-share BSE Sensex pack surged 317 points to hit a lifetime high of 69,614 while the broader NSE Nifty index moved 101 points higher to scale a fresh all-time peak of 20,957.

Foreign portfolio investors (FPIs) bought Indian shares worth Rs 5,224 crore on a net basis during the previous session. On the other hand, domestic institutional investors (DIIs) sold shares worth Rs 1,399 crore.

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14 out of the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Oil & Gas, Nifty Pharma, Nifty FMCG, Nifty Consumer Durables and and Nifty Bank were outperforming the NSE platform by rising as much as 1.47 per cent, 0.47 per cent, 0.40 per cent, 0.27 per cent and 0.33 per cent, respectively. However, Nifty Auto slipped 0.01 per cent.

The overall market breadth was positive as 1,729 shares were advancing while 1,221 were declining on BSE.

On the 30-share BSE index, ITC, Reliance Industries, Infosys, L&T, TCS, Bajaj Finance and Asian Paints were among the top gainers.

Also, Adani Total Gas, Adani Green Energy, Adani Energy Solutions, NDTV and DCW surged up to 14.52 per cent. On the flipside, Can Fin Homes, Computer Age Management Services (CAMS), Safari Industries (India), Torrent Pharma and Swan Energy tanked up to 4.44 per cent.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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