Nifty May Hit 11,000 In 2017, Says Sanjiv Bhasin. Here Are His Top Bets

NDTV Profit Desk

23 Feb 2017, 07:10 PM IST

Sanjiv Bhasin says Karur Vysya Bank could offer 20% return this year.

Sanjiv Bhasin, executive vice president at IIFL, says Indian markets look over-bought in the short term after a 9 per cent gain in this year so far but another 10 per cent upside in Nifty in next 6 months is also possible.

"We are of the view that Nifty at the end of this year could be closer to 10,500-11,000 given that the under-ownership and improving macros playing out in the next six months," said Mr Bhasin.

Better than expected Q3 earnings, no negative surprises in the Budget and positive global markets have boosted investor sentiment and have led to buying in the market, analysts say. Foreign institutional investors, who were net sellers of Indian stocks for last four months, have turned net buyers this month supporting gains in the market.

Mr Bhasin further said that next 3-4 years will be extremely bullish for Indian equities as an asset class, so investors should stick to SIP (Systematic Investment Plan) route to reap benefits from the market rather than trying to time it.

Here are his top picks:

Karur Vysya Bank (Rs 98.85): With improving net interest margin and a very good franchise in South India, Karun Vysya Bank could see 20 per cent upside this year.

Godrej Properties (Rs 369.75): It has been one of our top pick since Rs 290 levels. With an excellent quarterly earnings and pedigree management, the stock could offer 30 per cent upside in next 1 year.

Satin Creditcare Network (Rs 436.75): The stock could touch Rs 650 in next one year.

Suprajit Engineering (Rs 202.30): It has 65 per cent market shares in the cable market on the two-wheeler side and it is now diversifying into the four-wheeler side. The acquisition of Phoenix Lamp will increase its market shares in the automotive lighting segment.

In addition to the above stocks, Sanjiv Bhasin is also bullish on the telecom sector as he believes that after the on-going consolidation in the sector, telecom companies will see improved earnings. He also advised buying cement, materials and banking stocks on corrections.