Buy UPL, Advanta, Dr Reddy's, Sun Pharma: Deven Choksey

Indian stock markets have witnessed a sharp correction over the last few months amid a selloff by foreign investors ahead of the possibility of a rate hike in the US. Analysts say the correction provides investors with a good opportunity to enter stock markets. Veteran investor Deven Choksey, managing director of K R Choksey Securities, spoke to NDTV Profit about his top picks.

Stock Talk

Buy UPL, Advanta: The UPL-Advanta deal is a powerful one in a sense that on one side there is agri-business of the UPL and the reach that it has created. Similarly, Advanta has also created its own reach. Going ahead, both the companies together will have operational synergies. Secondly, the consolidated entity will have larger amount of benefit in terms of financial numbers. (Watch video)

Buy Dr Reddy's Labs, Sun Pharma: Some of the concerns are overplayed for pharma stocks. Fundamentally, DRL has the capacity to go ahead and launch new products in a given period of time and at the same time it gives clear visibility for the company. We remain positive on Dr Reddy's Labs, Mr Choksey said. While, Sun Pharma is passing through its own challenges of merging Ranbaxy with itself and as a result couple of more quarters could remain subdued due to cost absorption and that could be time period in which Sun Pharma completes its integration. Sun Pharma could emerge as a winner with Ranbaxy acquisition. At lower levels one can invest in these companies with prices going down.

Buy Infosys: Fundamentals remain the same and given the strength of Infosys, one can buy this stock at lower levels. The kind of business model they have adopted shows that Infosys will be a safe bet going ahead.

Buy housing finance and auto stocks: These stocks can gain from the recommendations of seventh Pay Commission. Coupled with low interest rates, this theme will play out well for investors.