Sensex, Nifty may hit new all-time highs by Diwali; Sanjiv Bhasin bullish on bank stocks - IIFL Interview

Sensex, Nifty may hit new all-time highs by Diwali; Sanjiv Bhasin bullish on bank stocks | IIFL Interview

BSE Sensex, NSE Nifty 50, and Bank Nifty may see up to 7 per cent correction from the current levels in near-term, but may make new highs by Diwali 2022, Sanjiv Bhasin, Director, IIFL Securities, said. Last week, BSE Sensex crossed 60,000, NSE Nifty topped 17900, and Bank Nifty ruled above 39,750. In an interview with Surbhi Jain from FinancialExpress.com, Sanjiv Bhasin said, after a fall of 5-7 per cent, all these indices will make new all-time highs. He is bullish on banking stocks and suggested a few names like ICICI Bank, and Kotak Mahindra Bank, to pocket gains by end of December 2022. Sanjiv Bhasin has also chalked out a few stocks that investors must avoid. Here are the edited excerpts.

Also read: Nifty may fall to 16300, Bank Nifty to 36300 by Aug-end; Sanjiv Bhasin bets on these sectors | IIFL Interview

Humungous feeling of left out is now triggering the return of foreign investors which is seeing the best run in over 14 months. Financials, realty, auto, and infra continue to outperform while IT lags the index.

As FIIs return to D-St, what should investors do with bank stocks? Which bank stocks can be looked at?

Banks were the favourite whipping boys in the sell off of the last 6 months as foreign ownership was overweight. Now with higher rates banks with better CASA ratio are seeing excellent results as re-rating & foreign buying returns in the same banks they sold aggressively till 15200. ICICI Bank, Kotak Mahindra Bank, IDFC First Bank, Bank of Baroda, and DCB Bank could be good baskets to buy for year-end returns

Also read: Value stocks favoured, but some tech shares could do well; time now for long-term investment, says UBS

Is NSE Nifty 50 in an overbought zone?

Definitely overbought but huge FOMO (feeling of missing out) can see extremes on both sides which is why we extended the fall to 15180 as pessimism was highest there and now can extend till 18300 as optimism returns.

What are your top stocks to buy and sell?

Top stocks to buy are DLF, Apollo Hospital, Hero MotoCorp, UPL, and SAIL. One can avoid pharma & IT stocks which could lag the index.

What is your near-term view on BSE Sensex, Nifty 50, and Bank Nifty?

Sensex, Nifty & Bank Nifty can see correction in near term of 5-7% from recent highs, but Diwali may see new highs in all three indices.