Samvat 2077 started with a strong uptrend on the back of outperformance in the broader market. while the benchmark nifty Having given stupendous returns of over 40% since last Diwali, there has also been a significant rise in mid and smallcap indices.
In a note, brokerage and research firm Axis Securities said that Samvat 2078 is now brighter and more promising with the prospect that growth will revive soon with higher economic activity, as can be inferred from the high-frequency indicator trends.
Factoring in all these economic and market developments, Axis Securities suggests the following themes for Samvat 2078: Small and midcaps are picking up steam and balance sheet leverage is likely to play into 2022 with a better outlook on return ratios and profitability .
Housing and banking will be the major themes in 2022 due to their better outlook and the current low interest rate regime. The infra sector is an emerging topic as the government is stepping up its spending in this sector.
Digital and cloud will continue to be a major long-term structural theme. Home improvement demand has grown and remains strong in 2022. The brokerage also expects that travel and tourism is a more promising subject, which has gained momentum following the spurt in the vaccination campaign.
Based on these topics, Axis Securities’ top Diwali 2021 stock picking These are SBI Life Insurance (target price: 1,350), ICICI Securities (target price: 940), Cholamandalam investment (target price: 690), Can Fin Homes (target price: Rs. ₹800).
Its stock picks include KNR Construction (target price: 325), ACC (target price: 2,570), Cyient (target price: 1,300), Mindtree (target price: 5,100), APL Apollo Tubes (target price: 960), Safari Industries . target price: 930).
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.