“PSU banks are amongst the brightest spots within the banking and NBFC space. Their internal growth dynamics are now equal to or better than private banks,” Mehta said. He added that switching to stocks like SBI, Bank of Baroda, Bank of India, and even PNB makes sense for investors looking for better growth visibility.
On the metals sector, Mehta remained cautious. While he avoids most commodity plays, he highlighted Jindal Steel & Power as a trading opportunity. The company has recently commissioned one of India’s largest 5-million-tonne blast furnaces at Angul, doubling capacity and leveraging strong backward linkages with captive mines.
IT stocks: Be selective amid global slowdown
Turning to technology, Mehta flagged concerns around KPIT Technologies, noting that order flows have slowed due to global auto industry shifts toward China. “The EV and auto centre of gravity is moving to China, and European and US automakers are rethinking strategies. That is impacting KPIT’s growth,” he explained.
However, he sees better prospects in other selective midcap IT names. Tata Elxsi, with order wins from Suzuki Motors and European automakers, offers better earnings visibility, Mehta noted. He also remains positive on Coforge, Persistent Systems, and Newgen Software, citing their strong growth in niche verticals.
“Midcap IT companies have an edge because even smaller projects can deliver 10–13% growth on a low base. Their management quality and ability to scale in turbulent times stand out,” Mehta said.Meanwhile, Mehta remained cautious on largecap IT companies due to their higher dependence on large-scale orders and slower growth momentum.So, Mehta sees PSU banks and select midcap IT companies as key investment opportunities, while maintaining an avoid stance on most commodity and largecap IT stocks.
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