RVNL, Bharat Electronics: Here's what Avinash Gorakshakar of ProfitMart says on these two stocks

Avinash Gorakshakar, Director of Research at ProfitMart Securities, said that market is now getting back to the value creation mode. "We would be seeing selective buying across sectors such as railways, infrastructure, defence, capital goods and automobile. Investors need to give a little more time and patience. Risk reward would come over a period of time," Gorakshakar told BT TV on Thursday.

"There are many companies which contributed to the success of Chandrayaan-3. A lot of action would be seen in these counters," the market expert added.

On the stock-specific front, Gorakshakar picked Rail Vikas Nigam Ltd (RVNL) as one of his top picks. "The company enjoys a strong order book of over Rs 50,000 crore. In the last financial year, it generated a revenue of more than Rs 20,000 crore and profit after tax of 14,000 crore. This year, it could see profit of around Rs 16,000-17,000 crore as the risk-reward looks decent," he said.

This could be a good portfolio pick over a period of 12-15 months for a target of around Rs 155 to Rs 160, the market expert mentioned.

The other stock which Gorakshakar suggested was Bharat Electronics Ltd (BEL). "The stock is comparatively undervalued than other defence companies. BEL has contributed in a meaningful way to the Chandrayaan-3 story. It has order book of Rs 45,000-50,000 crore with a debt-free balance sheet. Next two to three years would be extremely strong for the company. A price target of around Rs 170-175 is pretty much possible," he stated.

Meanwhile, Indian equity benchmarks rose sharply in early trade, led by gains across all sectors. Mid- and small-cap shares were positive as Nifty Midcap 100 climbed 0.80 per cent and small-cap gained 0.56 per cent.

On the global front, Asian markets were up today following an overnight rise in Wall Street equities.

Back home, foreign institutional investors (FIIs) bought Indian shares on a net basis during the previous session, adding Rs 614 crore, while domestic institutional investors (DIIs) bought shares worth Rs 125 crore, according to provisional National Stock Exchange data.

All 15 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty Bank, Nifty Financial Services, Nifty Metal and Nifty IT were outperforming the NSE platform by rising as much as 0.93 per cent, 0.87 per cent, 0.97 per cent and 0.76 per cent, respectively.

On the stock-specific front, Adani Enterprises was the top gainer in the Nifty pack as the stock jumped 2.44 per cent to trade at Rs 2,592. Adani Ports, UltraTech Cement, IndusInd Bank and L&T gained up to 1.93 per cent.

In contrast, Jio Financial Services, Hindalco, Divi's Labs and Eicher Motors were among the top laggards.

The overall market breadth was positive as 2,146 shares were advancing while 798 were declining on BSE.

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