Auto demand set for festival boost; BSE, CAMS good long-term bets: Neeraj Dewan

So, next two-three quarters we can see that improvement happening in the credit demand.

“>

Market experts are closely tracking Infosys after the IT major announced a fresh buyback. According to market expert Neeraj Dewan, the current environment makes this buyback more attractive than the previous one.

“The last buyback was at ₹1,850, but the stock didn’t do much after that. This time, valuations are better, and the stock has been at low levels for a while. Depending on the buyback premium, there’s an arbitrage opportunity, and the stock should form a base here with attractive long-term valuations,” Dewan told ET Now.

Railway stocks, particularly RailTel, have also been in focus with fresh order wins, including a ₹700 crore order from the Education Council of Bihar. Dewan believes the sector is positioned for a healthier phase after a prolonged consolidation.

“Railway stocks had rallied sharply last year and became expensive, so consolidation was needed. RailTel and others corrected a lot, but with improving order books and better valuations, there’s now a case for stock-specific investment. Over the next year or so, upside potential looks good,” he explained.

On the broader fundamentals, Dewan noted that the base has already been established. “These stocks have made a base, so a big downside looks unlikely. Consolidation is done, valuations are attractive, and last quarter results were not as bad as feared. With a couple of good quarters, growth will be clearer. In the short to medium term, there’s a case for accumulation.”The auto sector has also been buzzing after GST rate cuts, strong monsoons, and hopes of festive season demand. Dewan highlighted that recent corrections created solid entry points.

“In recent months, we recommended Bajaj Auto and Hero Moto after sharp corrections. Those were good entry points around ₹8,200 for Bajaj Auto and below ₹5,000 for Hero. Even now, long-term investors can look at M&M and TVS, which have shown strong performance. GST cuts, good monsoons, and lower rates should boost demand, especially during the festival season,” he said.

Turning to capital market-linked stocks, Dewan pointed to BSE, NAM, and CAMS as attractive long-term bets.“These stocks corrected due to expiry-related talks, but volumes should normalise. I like BSE at current levels for the long term. NAM has also done well, and CAMS, now at a reasonable PE after correction, looks attractive. A basket of BSE, NAM, and CAMS would be a good long-term investment,” he added.From IT majors like Infosys to railway plays and auto leaders, Dewan sees attractive opportunities for long-term investors across multiple segments of the market.