Tips for Trade: Budget to boost market; stick to pharma, auto stocks
Sanjeev Prasad, Executive Director & Co-Head of Kotak Institutional Equities feels that inflation may go back to around 7 per cent by the end of next year.
India’s equity benchmarks closed with minor weakness on the expiry day as realty stocks extended losses on Thursday. The Sensex ended 66.75 points or 0.37 per cent lower at 18,078.50, while the broader Nifty index declined 22 points to close below the 5,500 levels.
Metals and auto stocks added to the losses as the Nifty was up over 6 per cent in the February series.
Reliance Power, Reliance Infra, HCL Tech were the index gainers, while Cipla, Ranbaxy, Coal India were the losers today.
On our show Tips for Tomorrow, Prakash Diwan, Head- Institutional Client Group, Asit C Mehta and Lancelot D'Cunha, CEO, Sharyans Wealth Management, discussed the market performance.
MARKET OUTLOOK: BUDGET IMPACT
According to Prakash Diwan, FII flows will continue to come in. “Expect the Nifty to touch 5800 levels in March; it will touch 5800 before the budget “he said.
Lancelot D'Cunha feels that the market will remain sideways until budget and budget will give direction to markets.
“Positive announcements in the budget will boost markets, however, the trend will depend on the liquidity flows” he added.
SECTOR BETS
In Diwan’s view, pharma, metals, capital goods look attractive. He expects restructuring exercise to be positive for both Sesa Goa and Sterlite Industries.
D'Cunha likes private sector banks and housing finance companies. “LIC Housing Finance, Yes Bank look attractive,” he said. According to him, Cairn India looks fundamentally strong. “Overhang of Sesa Goa-Vedanta deal continues for Cairn India. I advise investors to book profits in Sterlite and Sesa Goa,” he explained.
STOCK PICKS
Prakash Diwan suggests buying DRL, Glenmark Pharma, Lupin, Bajaj Auto and Lumax.
Lancelot D'Cunha suggests buying Tata Motors, M&M, Lupin and Glenmark Pharma
