Samvat 2077 started with a strong uptrend on the back of outperformance in the broader market. Standard nifty And the Sensex touched new all-time highs for the first time in history, crossing the 18,000 and 60,000 mark respectively. Nifty has given around 43% returns so far in Samvat 2077, while Mid and Smallcap also saw a great rally as all sectors gave positive returns.
For Samvat 2078, domestic brokerage Motilal Oswal expects the travel and tourism sectors to play between the unlocking themes, allowing the leisure segment to perform well in the next 6-12 months.
The brokerage also believes that real estate is on the verge of an uptrend with several macro factors supporting such as low interest rates, benign prices and increasing affordability with low home ownership in India.
Motilal Oswal said, “The pandemic has provided long-term growth drivers for some sectors such as increased spending on technology and change in consumer behavior for QSR which is giving them long-term growth visibility.”
Based on the major themes mentioned above, which it believes that Motilal Oswal’s top Diwali stock picking For Samvat 2078, Tata Motors, SBI, Trident, APL Apollo, Varun Beverages, Infosys, Macrotech, UltraTech, Orient Electric are included.
Another brokerage Axis Securities said that Samvat 2078 is much brighter and more promising with the possibility that growth will revive soon with higher economic activity.
Factoring in all the recent economic and market developments, Axis Securities believes that housing and banking will be major topics to watch in 2022 due to their better outlook and the current low interest rate regime. Axis said 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 increased and will remain strong through 2022. The brokerage also expects that travel and tourism will be a more promising subject, which has gained momentum following the spurt in the vaccination campaign, it said.
Based on these themes, Axis Securities’ top Diwali picks are SBI Life Insurance, ICICI Securities, Cholamandalam Investment, Can Fin Homes, KNR Construction, ACC, Scient, Mindtree, APL Apollo Tubes, Safari Industries.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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