The Indian market has been exhibiting extreme volatility and uncertainty as brokerages and experts believe short-term outlook remains bleak. Even though, the domestic equity market extended the losing streak to continuous months they remain bullish on the domestic equity market in the long-term.
“In India, the near-term texture of the market is ‘sell on rallies’. FPI’s sustained selling has become almost predictable,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He was of the view that FPI selling in banking stocks has led to depressed valuations in this segment, particularly in high quality banking majors. “This is an opportunity for medium- long- term investors,” the expert said.
As per brokerage firm Angel One, the market direction is likely to be dictated by the global inflation for the next few months. Aggressive rate hikes by global central banks on the back of continued inflationary pressures are the near-term risk while earlier than expected peaking of Inflation would drive the market.
“The continuous stress in the supply chains and high volatility in the commodity prices, which are at the elevated levels, have resulted in centrals banks aggressively tightening monetary policy and liquidity conditions to tackle inflation,” says the brokerage.
It remains cautious in the short-term due to multiple headwinds, but is bullish on the market in the long-run.
Based on its analysis, the brokerage has picked 15 stocks ranging from Auto, Chemical, Banking, IT and other sectors.
From Auto space, AngelOne favourite June picks were Ashok Leyland, Sona BLW Precision, Ramkrishna Forgings and Suprajit Enggineering. It picked Federal Bank, HDFC Bank, AU Small Finance from banking segment. P I Industries and Jubilant Ingrevia were it two picks from chemical sector, while it recommended HCL Technolgies from IT sector. Stove Kraft, Sobha Limited, Amber Enterprise, Oberoi Realty and Devyani International were other recommendations.
Stocks to buy or long-term
1. Ashok Leyland | CMP: Rs 138 | Target price: Rs 164 | Upside: 19%
2. Sona BLW Precision| CMP: Rs 579 | Target price: Rs 843| Upside: 46%
3. Ramkrishna Forgings | CMP: Rs 165 | Target price: Rs 256| Upside: 55%
4. Suprajit Engineering | CMP: Rs 326 | Target price: Rs 485| Upside: 49%
5. PI Industries | CMP: Rs 2679 | Target price: Rs 3440| Upside: 28%
6. Jubilant Ingrevia | CMP: Rs 491 | Target price: Rs 700| Upside: 43%
7. HCL Technologies | CMP: Rs 1037 | Target price: Rs 1348| Upside: 30%
8. Stove Kraft | CMP: Rs 540 | Target price: Rs 805| Upside: 49%
9. Sobha Limited| CMP: Rs 521 | Target price: Rs 750| Upside: 44%
10. Amber Enterprises| CMP: Rs 2489| Target price: Rs 3850| Upside: 55%
11. Oberoi Realty| CMP: Rs 764| Target price: Rs 1000| Upside: 31%
12. Devani International| CMP: Rs 164| Target price: Rs 219| Upside: 34%
13. Federal Bank| CMP: Rs 91| Target price: Rs 120| Upside: 32%
14. HDFC Bank| CMP: Rs 1378| Target price: Rs 1700| Upside: 23 %
15. AU Small Finance Bank | CMP: Rs 1268| Target price: Rs 1695| Upside: 34 %