Buy Federal Bank, IndusInd Bank, Axis Bank and ICICI bank: Suresh Mahadevan

In a chat with ET Now, Suresh Mahadevan, Head Of Research, UBS Securities, talks about financials and infrastructure.

Why would you be negative on financials and infrastructure?

Again it is specific stocks we like. I do not think we are negative on infrastructure. In fact infrastructure we are overweight on our model portfolio. Financials, we are underweight but it is again focussing on specifics. Even within financials, we do like ICICI Bank over other large cap names. On the midcap space, we like of course Federal Bank which we recently initiated which we think is a very very strong idea. There is a new CEO, the stock is trading at a 60% discount to other private banks and of course with a new CEO and some turnaround, the stock will be quite at an inflexion point. We like IndusInd Bank, Axis Bank. So these are all stocks which are there and of course Shriram Transport. So these are 5 stocks that are there in my portfolio but I am obviously negative on some of the other large cap names. So that is why we end up as an underweight. On the infrastructure side, we are definitely positive. BHEL, L&T are there in our portfolio. Nagarjuna Construction, GVK, Lanco Infratech, Power Infrastructure are there. Infrastructure is a sector where we are overweight on actually, not underweight on. Financials we are marginally underweight but again we are very positive on select names.