Top Stocks Idea to Invest: Companies are expected to grow and grow in the third quarter.
Top Midcap Stocks: After better than expected earnings season in the second quarter, now on January 8, TCS results will start coming in the third quarter results. While corporate earnings were better than expected in the second quarter, companies’ earnings are expected to grow further in the third quarter. This could prove to be another strong quarter for the pharma, metal and cement sectors. Demand recovery during the festive season was better in the December quarter. Demand growth for prevention of corona virus is expected to start soon and demand growth is expected to continue. In such a situation, the market can get a new direction due to better earnings of companies in the December quarter. In this regard, brokerage house Motilal Oswal has given a report. Top Midcap and Lorgecap Idea have also been given for further investment in this.
Corporate earnings big trigger
According to the brokerage, the first major trigger for the market in 2021 is going to be corporate earnings. Talking about the last 3 months, macro conditions have been good. Investors’ sentiments have also improved. In the second quarter, where the Nifty / NSE Midcap 100 was up 9 per cent / 15 per cent, in the third quarter it has increased to 24 per cent / 23 per cent. The market has benefited from better liquidity conditions, expectation of better earnings, lower interest rates and increased investment by FIIs.
Vaccine approved booster dose for market
The economy has now recovered from the lockdown. Corona vaccination is about to begin soon. This makes the sentiment even better. The brokerage says that the government’s approval of 2 Corona vaccines will prove to be a booster dose for the stock market and is expected to continue to rally in the midcap even further.
Metal, cement, pharma sector can lead
According to brokerage house Motilal Oswal, the sectors that will drive the earnings season for the third quarter of FY 2021 include Healthcare, Cement, Metal and Consumer durables sectors. While Earnings is going to be flat in the consumer, private bank, auto and NBFC sectors. At the same time, capital goods, retail sector can see a decline in earnings. According to the brokerage, 7 percent growth is expected in Nifty companies on an annual basis. At the same time, PBT / PAT can show 20 percent / 17 percent growth on an annual basis.
These 10 midcap stocks will earn
AU Small Finance Bank, JSPL, JK Cement, Tata Consumer, Oberoi Realty, IEX, ICICI Securities, Varun Beverages, SEIS and Gujarat Gas
Lorgecap for investment
Infosys, ICICI Bank, SBI, Muthoot Finance, Ultratech Cement, M&M, Ashok Leyland, Bharti Airtel, HUL, Titan Company, Device Lab, HCL Tech.