SP Tulsian still upbeat on these private sector banks and consumption names

Among private sector banks, it is a foregone conclusion that two banks are the best - HDFC Bank and Kotak Mahindra Bank in terms of safety and comfort on the asset quality they seen to be the best, said market expert SP Tulsian of sptulsian.com.

"On the second rung, you could place three banks in this category - ICICI Bank, Axis Bank and third is State Bank of India. ICICI Bank has already seen a big fall in the last 3 or 4 days and probably that is also seen partly happening in Axis Bank and to some extent in SBI as well. So now I would really be worried more on further destruction of sentiment on these three banks."

"In morning, HDFC Bank was down 10 percent, Kotak Mahindra Bank was down by about 13-15 percent but now both these stocks are in green, so probably the same thing could happen with Axis Bank tomorrow or day after as well because you have some kind of technical factors. However fresh investments should be looked more into the HDFC Bank and ICICI Bank at this stage," said Tulsian in an interview with CNBC-TV18.

Speaking about consumption sector he said, it is the most preferred sector. "For the  last 3-4 days all of them have corrected severely. Today Asian Paints was down by about 12-13 percent but now it has recovered. So consumption is definitely a theme and if you wish to take a call you have at least 8-10 stocks available. I think it is time to take a call on the stocks like may be Colgate Palmolive, Godrej Consumer, Dabur India, Bata or may be HUL."

He further added, "Moreover, this is a time to look for valuation. There is no point in looking for just the herd mentality that go and buy the stocks which are having a PE multiple of 60 or 65 because that was the biggest mistake that investors had committed by investing in richly valued consumption stocks."

"So, the theme remains of consumption but not the theme of investing in the stocks of having high PE multiples," he said.