There are many such factors present in the market, which can give a new direction ahead. There is a strong recovery in the country’s economy. Demand is also gaining momentum due to increase in rural income. There will be further earning opportunities.
Last month, the level of 18600 was crossed for the first time in Nifty. On a monthly basis, it had a great growth of 1150 points. At the same time, till the end of October, this year the Nifty has gained 26 percent. However, at present, the market is volatile due to global reasons, high valuations and continuous selling by FIIs. However, there are many such factors in the market, which can give a new direction going forward. Brokerage house Motilal Oswal says that there is a strong recovery in the country’s economy. Demand is also gaining momentum due to increase in rural income. After recovering from the corona virus epidemic, now companies are giving better results. Profits are increasing. In such a situation, good returns can be achieved by including some top stocks in the portfolio. The brokerage has given a report in this regard.
Increasing profits of companies
The brokerage house says that the earnings season for the September quarter is as expected. Some companies have performed better than expected during 2QFY22. Talking about the results so far, the profit of Nifty companies has increased by 22 percent on a yearly basis, while the estimate was for 13 percent growth. Overall, the profits of companies have grown by 26 per cent year-on-year, while the growth estimate was 19 per cent. Strong growth in the technology sector, recovery in loan growth, higher commodity prices and volume growth in the energy and metal sectors and unlocking led to increased profits for companies.
Talking about the major economies in October, US (+7%), Indonesia (+5%), UK (+2%), Russia (+1%), Taiwan (+0.3%) and India (+0.3%) There was growth in the markets. While markets in Brazil (-7%), Korea (-3%), Japan (-2%) and China (-1%) closed weak.
Top Performer Sector
PSU Banks, Automobiles, Media, Utilities and Private Banks have been tusop performers in the month of October. PSU Banks (+14%), Automobiles (+7%), Media (+5%), Utilities (+4%), and Private Banks (+4%) were the top performers on Monthly Basis in October. On the other hand, there has been a decline in Consumer (-5%), Healthcare (-4%), Real Estate (-3%), Telecom (-3%), and Technology (-2%).
Top Performing Stocks
Top performers in October include Tata Motors (+45%), ICICI Bank (+14%), SBI (+11%), Titan (+10%), and M&M (+10%). While the top losers include HUVR (-11%), Coal India (-11%), Eicher Motors (-11%), HCL Tech (-11%), and TCS (-10%).
Macro conditions better
Monsoon has been normal in the country for the third consecutive year. With this increasing rural income, rural demand will also increase. There is a great recovery in macro economic trends on high frequency indicators (GST collection, e-way bills, PMI and fuel demand). It is improving month by month. Exports have emerged as a growth engine. Domestic demand is strong.
Top Largecap Stocks: ICICI Bank, SBI, Infosys, UltraTech, Bharti Airtel, Titan, Divi’s Labs, Hindalco, SBI Life, Jubilant Foodworks
Top Midcap Stocks: SAIL, Zensar, APL Apollo Tubes, TCI, Ramco Cements, Indian Hotels, Orient Electric, ABFRL, Chola Finance, Endurance
(Disclaimer: The investment advice here is given by the brokerage house. This is not the personal view of dgmartpro Business. Markets are risky, so take expert opinion before investing.)