Top Stock Picks October 2020:
After the fall of March, there has been a strong recovery in the stock market. The stock market has gained 50 percent since the March low. In this boom, the first half of FY 2021 (April 2020-September 2020) has proved to be one of the best terms of Nifty. However, it has also got the benefit of low base. At the moment, experts are assuming that the coming of the fifth phase of unlocking, now the country’s economy is coming in a new shape. Demand is also better than before. In particular, the midcap and smallcap, which have been underperformers for a long time, are now showing momentum. In view of this, brokerage house Oslal Oswal, in its report, has chosen 18 large-cap and midcap stocks as the best pick in October.
According to the report of Motilal Oswal, macro data has started to recover now. As the unlock phase is progressing, the industrial activity is improving. Markets are now opening up and the demand is also increasing with Phalle. Demand recovery is being seen in many top sectors. All these are good signs for the market. Even though the low base has benefited, the first half of FY 2021 has been one of the best half of the last 10 years of Nifty. Midcap and Smallcap have been major contributors in this. This Momentum seems to continue going forward.
Government reform also got support
In September, the central government made 2 major reforms. In this, the Agriculture Bill and the Labor Reform Bill were passed by Parliament. Both of these are supportive of the reformed market. He was also waiting for a long time. Talking about the rally of the last 6 months, the best thing is that one is not based on the pace of just one segment. The overall broadcaster market has performed well.
Keep an eye on which shares
Largecap: Hindustan Unilever, Infosys, Bharti Airtel, ICICI Bank, HCL Tech, Titan Company, Device Lab, Hero MotoCorp, Muthoot Finance
Midcap: Motherson Sumi, Alchem Lab, Ipca Lab, AU Small Finance Bank, ICICI Securities, Multi Commodity Exchange, India Energy Exchange, Team Lease Services
All these large caps are trading up to 29 per cent from their 1-year high, while midcap stocks are trading at a discount of 42 per cent from their 1-year high.
Sectoral Performance (MoM) in September
Midcap 100: 2%
Smallcap 100: 4%
Oil and Gas: -4%
Real Estate: -5%
Private Bank: -9%
Nifty PSE: -12%
Bank PSU: -16%
#Place #bets #largecap #midcap #October #ahead