Several brokerage houses have recommended banking as well as auto stocks as safe betS during the current volatile period being witnessed in the Indian equity market.
In a poll of analysts, conducted by IANS, other sectors such as infrastructure, capital goods, and realty stocks are also recommended. These are likely to outperform ahead of the Union Budget FY23, which will be tabled in the Parliament on February 1, 2022.
During the recent sessions, Indian benchmark equity indices have corrected from highs on concerns over the new variant.
To put it in perspective, Sensex and Nifty have declined around 3 per cent each in the past one month.
“KNR Construction, PNC Infra, Action Construction Equipment are our top picks in infra space, whereas Carborundum Universal, L&T, and Siemens are among the top picks in capital goods space,” said Santosh Meena, Head of Research at Swastika Investmart.
“Sobha, Brigade Group, and Prestige Group look strong as direct real estate players while Can Fin Homes, Polycab, HIL, Kajaria, Century Ply, Pidilite are some other strong stocks to play real estate theme.”
Besides, CapitalVia Global Research, recommended Tanla Platforms, Home First Finance, and Tata Teleservices as some of the ‘buy’ recommendations.
CapitalVia Research recommended Tanla Platforms’ stocks at Rs 1,680 with target price of Rs 1,980.
Additionally, it recommended Home First Finance stocks at above Rs 885 with target price of Rs 970.
For Tata Teleservices, it recommends buying at Rs 145 with target price of Rs 185.
Furthermore, Vinod Nair of Geojit Financial Services recommended HUL, Biocon, Tata Power, and Tech Mahindra stocks.
“We are positive on HUL considering its pricing power, distribution expansion and product innovation initiatives,” Nair said.
“Revival in urban demand, given the re-opening of markets, and resilient rural demand aided by good monsoon & sowing, higher MSPs and GoI’s initiatives to revive the economy including PLI scheme will support HUL.”
On Biocon, Nair said: “New product launches and higher operational efficiency should support long-term earnings growth prospectus. Strong relationships with clients and new product launches will carry forward Biocon’s profitability.”
In addition, Deepak Jasani of HDFC Securities bets on ITC, ICICI Bank, and NRB Bearings.