Eicher Motors, Archean Chemical Industries: Here's what Sunny Agrawal of SBI Securities says on these 2 stocks

Sunny Agrawal, Deputy Vice-President and Head of Fundamental Equity Research at SBI Securities, said the automobile sector could be up for a structural bull run over the next two to three years. Agrawal on Monday told BT TV that one can ride this sector through auto OEM (Original Equipment Manufacturer) as well as auto ancillary.

The market expert picked Eicher Motors for a medium- to long-term perspective, which is usually over two years. The stock is well placed in terms of risk-reward ratio, Agrawal said. The company's quarterly results were also healthy, he added.

Eicher Motors was last seen trading 0.33 per cent lower at Rs 3,338.45.

The other counter which Agrawal picked was Archean Chemical Industries. Investors can expect up to 30 per cent upside on a long-term basis, he stated. The Chennai-based company manufactures specialty marine chemicals such as bromine, industrial salt and sulphate of Potash.

Archean Chemical was down 1.65 per cent at Rs 551.90 in late-morning deals today.

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Meanwhile, Indian equity benchmarks traded higher today, led by gains in technology, metal, pharma and consumer stocks. Mid- and small-cap shares were positive as Nifty Midcap 100 rose 0.54 per cent and small-cap gained 0.52 per cent. On the global front, Asian equities were down. Most Wall Street equities closed lower on Friday.

Foreign institutional investors sold Indian shares on a net basis during the previous session, offloading Rs 267 crore, while domestic institutional investors bought shares worth Rs 339 crore, according to provisional National Stock Exchange data.

Long-term investors can use market corrections to slowly accumulate high quality growth stocks particularly in banking, capital goods and automobiles, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

13 out of the 15 sector gauges -- compiled by the National Stock Exchange -- were trading in the red. Sub-indexes Nifty IT, Nifty Metal, Nifty Pharma, Nifty FMCG and Nifty Consumer Durables were outperforming the NSE platform by rising as much as 0.73 per cent, 0.51 per cent, 0.37 per cent, 0.20 per cent and 0.54 per cent, respectively.

The overall market breadth was positive as 1,911 shares were advancing while 1,098 were declining on BSE.

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