Market veteran Sandip Sabharwal views certain private banks as attractive investments at present. He describes IT stocks as heavily oversold and sees room for 12 to 15 percent gains from current levels. Sabharwal also singles out Bharti Airtel as the sole viable telecom holding while noting structural issues at Vodafone. He raises questions about the Zepto IPO, citing its $7 billion valuation and lack of a clear profit path.
Speaking to ET Now, Sabharwal said banks remain inexpensive and well positioned. He highlighted Axis Bank and ICICI Bank as preferred private-sector choices, adding that HDFC Bank and SBI also appear reasonably valued. He pointed to the potential inflow of roughly 5 lakh crore rupees through FCNR(B) deposits as a factor that could ease deposit-growth pressures on lenders.
In the IT sector, Sabharwal noted sharp corrections and limited ownership. Despite near-term challenges from AI, he believes strong cash flows support higher valuations and sees limited downside risk. In telecom, he favors only Bharti Airtel. On the power side, he mentioned companies such as GE Vernova, Hitachi, Cummins, and firms in transformers and cables, though he cautioned that valuations are elevated and better entry points may arise during market declines.
Sabharwal reserved his strongest warning for Zepto, which filed its DRHP at around 73,000 crore rupees. He questioned the sustainability of such valuations for loss-making domestic firms and advised investors to focus on these risks rather than overseas IPOs like SpaceX.
