Suzlon Energy, YES Bank, GMR Airports top high-beta stock picks; metals, PSUs also in focus: Analyst

Sebi-registered analyst Mitesh Panchal believes certain high-beta counters are set for a strong comeback from a returns perspective.

"If you look at the chart pattern of Suzlon Energy Ltd, YES Bank Ltd and GMR Airport Ltd, all these stocks are looking phenomenally great on charts and we are of the view that going forward, these small ticket charts -- which are there in the F&O space -- will likely outperform," Panchal told Business Today on Thursday.

On the primary market, Panchal noted the heavy rush of initial public offerings (IPOs). "It is difficult to recall these IPO names because there's too much of a rush. Since the primary market is buzzing, we are expecting domestic benchmarks to hit fresh highs during the Deepavali time," he said.

The analyst also expressed optimism over the metal segment. "I think metal will come back strongly. So, all the eyes are on Hindalco, Nalco, JSW Steel, SAIL and Tata Steel," Panchal remarked.

Turning to the public sector space, he suggested investors adopt a selective approach. Among PSU stocks, Panchal said he found the charts of Bharat Heavy Electricals Ltd (BHEL), NMDC, NTPC, Coal India, Power Finance Corporation (PFC) and REC Ltd attractive.

From state-run banks, he stayed positive on State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB) and Canara Bank.

On the pharma sector, Panchal advised patience. "In the next one to three months, we'll get a clear-cut idea about any breakout in the pharma index. Till then, we'll have to sit on the sideline patiently and wait for the signal," he said.