'Prefer Infosys, Indraprastha Gas, Dabur, Power Finance and REC'

In a chat with ET Now, Amit Khurana, director research, Daulat Capital, talks about the stocks he is recommending to his clients.

What you are advising clients right now at 5400?

We have a stock-specific approach. Our take is not so much driven by sectors per se. For example, in IT services, we like the mid-cap. We like Infosys because that's one of the rare stocks that we believe will accelerate on growth over the next 2-3 quarters. It is a significantly back-loaded growth assumption for FY11 that we projected for. We like Tech Mahindra, considering it is too compelling evaluation. We are looking at 8-9 times price earnings, so that looks too compelling to us again.

In oil and gas, we are more in favour of the city gas distribution models. We like Indraprastha Gas, considering it showed immense pricing power and we have seen the government already interfering in spite of the steep price hike that they have taken for their retail distribution network.

On the FMCG side, we are positive on Dabur. We believe that valuations are rich now with a little room for error but we still like the long-term story pretty much there.

In financials, we actually like Power Finance and REC. We think that's a very strong combination of infra and power and sort of financials as a sector thrown in, so those are some of the names that we like. From a market perspective, we have our own upward bias but we do not think this is going to be a runaway rally. This is going to take a pause every 50-100 points on the Nifty and keep consolidating and we actually like that way because any runaway rally will bring back those concerns on the valuations again.