In an interview to ET Now, Sudip Bandyopadhyay, President of Destimoney Securities, says the Indian market has suffered due to basket selling in emerging markets, though India cannot be painted with the same brush as China. He shares his top investment ideas at this stage. Excerpts: ET Now: When it comes to blue chip private sector banks, the kind of relentless selling that we have seen by the FIIs in recent times, what is that the charts are telling you? Sudip Bandyopadhyay: You summed it up pretty well. There has been a risk aversion as far as global investors are concerned. The China issue is teaching them probably a lesson, and they want to go out and reduce exposure to emerging markets. So, even as India should not probably be painted with the same brush, we are getting impacted. It is a case of basket selling. As FII holding is significant in the blue chip private banks, they are bearing the brunt of this selloff. Having said that, private sector banks really look attractive. The kind of valuations at which ICICI Bank is quoting now is what PSU banks were quoting some time back. Therefore, if you have a slightly longer-term view, private sector banks — particularly the largecap private sector banks – look attractive for buying. Now, I do not think investors should start investing straight away. Probably, 10-20 per cent of their funds can go into these stocks. They should wait and watch how things unfold over the next couple of weeks – till say the Fed announcement on September 16-17. ET Now: Aside of aligning with world markets, what else are you going to look out for domestically in terms of cues? Is the market looking for any commentary from RBI because just last week, there was heightened talk about whether or not RBI is going to come out and cut rates even outside the policy review framework. Sudip Bandyopadhyay: Absolutely right. The domestic market can definitely look forward to some policy rate changes from RBI. A lot of views are being expressed by different quarters from the centre, which very clearly indicates that a rate cut is the preferred option for the Indian economy at this stage. If RBI bites the bullet and there is a rate cut, that is going to be very good for the Indian market. It can be a positive trigger for the Indian market to decouple from what is happening in global markets and start moving forward. ET Now: Would you still be in wait-and-watch mode or do you think at the current levels there are some conviction buys? Sudip Bandyopadhyay: Well there are conviction buys at this level. All we have been saying is that you should stick to the largecaps; do not try to be adventurous and get into midcaps and smallcaps. This is a time of extreme volatility. One must stick to counters where there is strong conviction. Maybe, if you have 100 bucks, put 20 or 30 bucks to work at this stage and wait for some more correction, if at all there is, and then put the balance money. As far as sectors are concerned, we like IT, pharma and automobiles. In the IT sector, we will definitely recommend buying Infosys at current level. In pharma, we like Sun Pharma after all the correction that has happened. In the automobiles, we like Maruti Suzuki. It is a great company and is back at the leadership position. With the festive season coming, with things hopefully improving in the Indian economy, the company will be among the big beneficiaries. But remember, all these three stocks if you are buying, you should buy with a one-year time horizon at least to reap at least 20 per cent-plus returns.