Play NBFC theme through commercial vehicle financiers: Ajay Bagga

In a chat with ET Now, Ajay Bagga, market analyst shares his contrarian bets.

ET Now: Can you suggest us some contrarian bets?

Ajay Bagga: Contrarian bets are fruitful when you have a time horizon of two to three years. Unfortunately, this very easy for us to say, but difficult for investors to digest.

So far, I do prefer FMCG sector, which is basically a domestic consumption story. The sector has not done well. The sector has returned mere 11 per cent in the last one year. But, a broader FMCG pack of Indian FMCG names can be looked at for a steady growth.

One can also look at pharma sector. The sector will remain in the sweet spot for a number of years. Stay with sector leaders and select midcaps.

I would also like to recommend IT sector. IT stocks have been beaten down a lot. We have seen IT counters outperforming on NASDAQ, though it is now a very different market,comprising of financials as well.

IT stocks returned 30 per cent in the last one year vis-à-vis pharma's 65-70 per cent gain.

Hence, IT stocks could be looked at. Fiinally, I would be interested in commercial vehicles (CV) story. Here, I am more interested in financiers of CVs. These NBFCs can grow faster than the CV manufacturers.