As the ‘Aatmanirbhar’ drive in India gains steam, domestic businesses are likely to benefit immensely from it. Market expert Vikas Sethi of Sethi Finmarts zeroes in on one specific sector that will really get a big boost. Sethi picks the chemical sector in India to benefit greatly as the country gears up to corner Chinese businesses. Sethi explains to Zee Business Managing Editor Anil Singhvi why he has chosen this sector and he also went a step further and revealed the names of stocks that he is putting his money on. 

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In his chat with the Market Guru, Sethi said that in the last couple of weeks he has tried to bring in stocks from the cash markets as there is relatively lower volatility. Among his stocks to buy with a long term view are public sector company stock – BHEL. The price movement in this stock has been very encouraging and now the fundamentals are also about to change. He expects the stock to do well, going forward. 

BHEL is currently trading at a price around Rs 39. The company is into the power equipment business and will benefit from the government focus on ‘Aatmanirbhar’ India. It also caters to demands from Indian Railways. The government has also announced some big orders. He said that he was bullish on the stock and it should be part of a portfolio with a long term view. The stock is likely to gain in the next 9-12 months and should reach Rs 65, he said.

This technical analyst said that his short term bet is on the chemical sector company Bodal Chemicals. This company manufactures dyes and dye chemicals. The company has strong fundamentals. Return on capital is around 25 per cent. The chemical sector is poised to do well in India as the chorus to isolate China is growing now. The stock should be bought at current levels, he said.

The stock is currently undervalued and it should achieve a target price of Rs 75 in a very near term. The stock is currently trading around Rs 66. 

Sethi’s positional medium term call of Galaxy Surfactants last week has been doing well as the stock has already achieved its target price of Rs 1600. The stock is currently trading around Rs 1617. profits have grown at a CAGR of 18 per cent. The valuations of this stocks are currently low at around Rs 1473. The stock should be bought at the current levels, he said. The target price of this stock is Rs 1600, he added.