Mumbai: These days there is an atmosphere of decline in the stock market. Last week, the stock market was in decline during all the trading days. This week too, the market had closed with gains for the first two days but yesterday i.e. on Wednesday the market again saw a decline. Although today is Diwali in most parts of the country, there is no holiday in Mumbai today. Therefore, there will be trading in BSE and NSE even on the day of Diwali. Tomorrow is a holiday in these markets. This means that there will be auspicious trading in the stock market tomorrow itself. But there is an opportunity for you to shop even on Diwali. We are telling you the list of special shares for this day.
now is the chance
If seen, at this time the BSE Sensex has fallen by about 5,600 points from the peak. During this period, there is double digit decline in many multibagger stocks. Therefore, investors can now stay away from the momentum game and buy quality stocks at lower prices. ICICI Securities has a Nifty target of 27,500 for the next one year with sectoral preference towards Capital Goods/Infra, Private Banks (and AMCs) and select Auto, IT and Pharma packs. The brokerage house said, “Considering the key filters of quality and growth visibility, we continue to see reasonable opportunities across the market spectrum. Investors are advised to look for strong earnings growth and visibility, stable cash flows, Use equities as a core asset class for long-term wealth creation by investing in quality companies with RoE and RoCE.”
You can buy quality stocks
Since broad market valuations are rich at the moment, analysts suggest that the opportunities arising from the market correction can be used to add quality stocks with attractive valuations from a long-term investment perspective. For Samvat 2081, Motilal Oswal expects sectors related to domestic structural and cyclical themes to perform well. The brokerage is positive on sectors like financials, consumption, industrials, IT and healthcare. Here we are sharing top stock tips for Diwali from the country’s top brokerages:
sharekhan
Sharekhan said the time has come to rebalance the portfolio and increase investment in large caps while reducing investments in the small and midcap space. Also be very selective while investing in small and microcaps and exit companies where valuations are very high and the margin of safety is very low. It said it picked stocks like Allied Blenders & Distillers, Bajaj Finserv, Bharti Airtel, Caplin Point Laboratories, Dabur, D Development, Hi-Tech Pipes, HUDCO, L&T, Mastek, PowerGrid, RIL, SBI, Sunteck Realty and Tata Motors. May go.
SBI Securities
SBI Securities said Samvat 2081 could be a year of consolidation for the first few months, followed by the beginning of an uptrend after the next Union Budget 2025-26, which is likely to be presented in the month of February 2025. It recommends Coal India, Macrotech Developers, Bharti Hexacom, GlaxoSmithKline Pharma, Nippon Life AMC, Escorts Kubota, Chalet Hotels, Newgen Software, Titagarh Rail, PG Electroplast, Arvind Fashion and Kilburn Engineering among its stock picks.
Motilal Oswal
Its Diwali stock picks include ICICI Bank, HCL Tech, L&T, Titan, Zomato, IPCA, Angel One, Five Star, Amber and Zen Tech.
Axis Securities
The stocks selected for Diwali by this brokerage house include Gravita India, Arvind Smart Space, Inox Wind, KPIT Technologies, HG Infra, AU Small Bank, Lupine, Indian Hotels and UNO Minda.
HDFC Securities
Bank of India, JK Lakshmi Cement, Jyoti Labs, L&T Finance, NALCO, Naveen Fluorine, NCC, PNB Housing Finance, RIL and SBI are among the stocks selected by HDFC Securities for Diwali.
Kotak Securities
Top investment ideas include Aadhar Housing, Axis Bank, Feem Industries, Gravita India, Godrej Agrovet, JB Chemicals, SH Kelkar and Zomato.
(Disclaimer: The recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Navbharat Times)
Interview Date: November 1, 2023
Location: Time.news Studio, Mumbai
Participants:
- Editor: Shruti Malhotra
- Expert: Vikram Jha, Senior Analyst at ICICI Securities
Shruti Malhotra: Good morning, Vikram! Thank you for joining us on Time.news today. With the recent fluctuations in the stock market, it’s quite a pertinent time to discuss the current trends. The market has seen a significant drop lately, especially with a decline of around 5,600 points from its peak. What are your assessments on this?
Vikram Jha: Good morning, Shruti! It’s great to be here. Yes, the recent declines are certainly significant. What we’ve seen is part of a broader market correction that can often happen after a strong bull run. The volatility has affected many investors, particularly those in mid and small-cap segments. As we enter Diwali, traditionally a festive time for investment, the sentiment seems mixed.
Shruti Malhotra: Absolutely! There’s a notable shift in the market dynamics right now. While there have been gains in the early part of the week, yesterday marked yet another decline. With Diwali being a crucial occasion for trading, what would you recommend to investors looking to make the best of this period?
Vikram Jha: This is indeed a pivotal moment for investors. With the correction, many quality stocks are now available at attractive valuations. I would advise investors to stay away from the momentum game and instead focus on buying solid, fundamentally strong stocks. Notably, we have identified sectors such as Capital Goods, Private Banks, and select segments in Auto, IT, and Pharma, which should be on the watchlist for long-term investment opportunities.
Shruti Malhotra: That’s sound advice! It seems like a shift towards quality stocks is recommended at this juncture. What kind of growth prospects are we looking at for investors who follow this strategy?
Vikram Jha: The focus should certainly be on companies with strong earnings growth and visibility, as well as stable cash flows. We are projecting a Nifty target of 27,500 for the next year, indicating a potential upside for investors. Taking a long-term approach with equities as a core asset class can lead to substantial wealth creation if you choose wisely and thoughtfully.
Shruti Malhotra: That sounds promising! Companies often offer investors dividends; do you think that will play a significant role this Diwali, especially when selecting stocks?
Vikram Jha: Absolutely. Companies with a consistent dividend history often reflect stability and strong cash flow management, making them excellent long-term investments. As the market corrects, firms that maintain or increase their dividend payouts can signal sound management and a commitment to returning value to shareholders, which is especially appealing during festive investment periods.
Shruti Malhotra: Very insightful! As we wrap up, can you share some particular stocks or sectors that investors should consider this Diwali based on the latest analysis?
Vikram Jha: Certainly! Some stocks that look promising include Bajaj Finserv, ICICI Bank, and Infosys. Additionally, sectors like financials, industrials, and healthcare are expected to perform well moving into Samvat 2081. It’s a good time for investors to rebalance their portfolios towards large-cap stocks while being cautious with small and mid-caps.
Shruti Malhotra: Thank you, Vikram! Your insights are invaluable for our viewers curious about navigating this volatile market. We hope to see a more stabilized trading environment soon. Happy Diwali to you and all our viewers!
Vikram Jha: Thank you, Shruti! Happy Diwali to everyone watching. Let’s hope for prosperous trading days ahead.
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[End of Interview]