Indian stock market expected to see significant growth, with focus on specific sectors

From Hindustan Times: 2024-06-15 11:38:02

With the elections-related uncertainty behind us, a National Democratic Alliance (NDA) government is now in place with support from around 300 members of Parliament. Analysts anticipate a test for the Bharatiya Janata Party (BJP) and Prime Minister Narendra Modi in running the alliance government, with continuity in key ministries seen as a positive. Amnish Aggarwal of Prabhudas Lilladher expects the NDA government to maintain a focus on capex-led growth across various sectors. Positive outcomes are anticipated for Auto, Banks, AMCs, Capital Goods, Defence, Hospitals, Pharma, Cement, Aviation, and Discretionary consumption. The Nifty 50 is currently trading at 19.2x 1-year forward EPS, with optimism for a re-rating of the markets driven by a progressive Union Budget, normal monsoons, and strong inflows. In its base, bull, and bear cases, the brokerage firm projects targets for the Nifty 50. Weight adjustments in the Model Portfolio by Prabhudas Lilladher include cuts on certain stocks and increased weights on others across various sectors. The brokerage is overweight on Auto, Banks, Capital Goods, Consumer, Healthcare, Telecom, equal weight on cement, and underweight on IT, Metals, Diversified financials, and Oil and Gas. High conviction picks have seen changes, with additions like BEML and ITC. Remember to consult certified experts for investment decisions.



Read more at Hindustan Times: Indian stock market ready for a dream run, target Nifty 50 at 25,816, says PL; bullish on Auto, Banks, Defence, FMCG