2022 has started in correction mode for the market. There has been a steady decline in the market before the budget. But the long term outlook for the market looks better for several reasons.
Best Stocks to Buy: In the year 2021, where there was a strong rally in the market, in the beginning of the year 2022, selling pressure is being seen in the market. 2022 has started in correction mode for the market. There has been a steady decline in the market before the budget. The concern is not about the domestic sentiment but the global sentiment. Inflation has increased continuously at the global level, central banks are looking strict about monetary policy. Omicron, a new variant of the corona virus, also remains a concern, while foreign investors are in a sell-off mood in bond yields. But the long term outlook for the market looks better for several reasons. In such a situation, in the current fall, investors have a chance to strengthen their portfolio. Brokerage house Motilal Oswal has given a list of 10 such largecap and 10 mid and smallcap stocks, which are expected to rise further.
Nifty is 8 percent correct from its previous high
Brokerage house Motilal Oswal says that Nifty has corrected 8 percent from its previous high. In this fall, the valuation of many stocks has once again become reasonable. On the other hand the economy in the country is in recovery mood. Corporate earnings are getting better. The profits of the companies have improved or are becoming stable. Take the current correction as an opportunity. The long term outlook of the market is strong. In such a situation, you can keep an eye on the fundamentally strong and better valuation stocks right now.
Earning visibility strong
The brokerage house says that it is strong when it comes to earning visibility. On the other hand, talking about the third wave of corona virus, most of the cases are mild. In such a situation, it does not seem to have much effect on the economy. Most countries have ruled out the possibility of lockdown. State governments have also started lifting restrictions, which have not affected the economic equity like in the first and second wave. Corporate earnings are as per expectation. There has been 32%/16%/23%/18% growth in sales/EBITDA/PBT/PAT in the December quarter. Whereas 31%/18%/24%/18% growth was expected.
Best Largecap: ICICI Bank, SBI, Axis Bank, Reliance, Bharti Airtel, Infosys, HUVR, L&T, Titan, Hindalco
Best Midcap/Smallcap: Gujarat Gas, Ashok Leyland, Oberoi Realty, ABFRL, Indian Hotels, Devyani International, Zensar Tech, Indigo Paints, Orient Electric, Transport Corp
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