Gautam Shah picks this stock as the trade of the year
Gautam Shah, Founder & Chief Strategist of Goldilocks Premium Research, highlighted that while HDFC Bank garners considerable investor interest as the market's largest stock, Goldilocks' focus remains on SBI.
Goldilocks Premium Research believes the State Bank of India (SBI) stock has the potential to reach ₹1,000 apiece this year (2024). Gautam Shah, Founder & Chief Strategist of Goldilocks Premium Research said, “HDFC Bank is the biggest stock in the market and therefore, everyone is invested big time and to the brim, and that is probably the reason everyone is interested in it. But for us, SBI has been the trade of the year.”
With a market valuation of ₹6.89 lakh crore, SBI occupies the fifth spot after Reliance Industries, Tata Consultancy Services (TCS), HDFC Bank and ICICI Bank. The stock of SBI has rallied as much as 20.5% in February so far, clocking its best-ever monthly return in three years. The last time such gains were seen was in February 2021, when it surged 38.3%. The state-owned lender had also reclaimed the status of the most-valued PSU by overtaking LIC in market valuation.
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On February 28, the stock closed a percent down at ₹743 per share. The shares of the country’s largest lender have gained close to 42% in the past year.
According to Shah, HDFC Bank will remain in a range. “₹1,380 on the downside and ₹1,550-1,570 on the upside. It is not going to do much. In today’s market opportunity cost is huge. So, you do not want to get into stocks like HDFC Bank when there is so much happening and there is no real momentum on the upside,” said Shah.
In a separate discussion with CNBC-TV18, Rajiv Jain of GQG Partners explained the rationale behind choosing lenders like SBI over the likes of HDFC Bank.
"We thought SBI has far better disconnect than HDFC Bank which is a very high-quality franchise," he said. "It is likely that we will own it somewhere down the line," he added.
When asked about telecom stocks, he said, “I would love to just stay with Bharti and Reliance if I want to play telecom.”
Also Watch | Dean Kim from William O’Neil + Co provides a detailed analysis of both public and private sector banks.
Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
For the entire interview, watch the accompanying video
(Edited by : Shweta Mungre)
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