Brokerage firm Motilal Oswal Financial Services expects rise in other large-cap stocks including HDFC, SBI, Wipro, HCL Technologies, L&T and Tata Motors.
Stock Tips: Indian equity markets have fallen by more than 5 per cent this year. This decline has been seen amid rising geo-political tensions and prospects of a hike in interest rates by the US Federal Reserve. The market was shocked by the decision of Russian President Vladimir Putin to launch a military operation in Ukraine. However, in the midst of this correction, investors have an opportunity to invest in those companies, which have the potential for better growth going forward. Brokerage firm Motilal Oswal Financial Services expects rise in other large-cap stocks including HDFC (Housing Development Finance Corporation), SBI (State Bank of India), Wipro, HCL Technologies, L&T and Tata Motors.
According to analysts, after the recent correction, Nifty is currently trading at 19x 12-Month Forward P/E, which is slightly below its 10-year average for the first time since November 2020. If Russia-Ukraine tensions prolong and energy prices rise for a long time, it could affect earnings estimates of companies. If the Ukraine crisis prolongs, the earnings estimates of Nifty 50 companies may drop due to higher energy costs.
Billionaires in India: After America and China, the number of billionaires in India increased by 11% in one year
You can bet in these large cap stocks
These large cap stocks have corrected 10-20 per cent from their 52-week high.
- State Bank Of India (SBI)
- HCL Technologies
- Larsen & Toubro (L&T)
- Tata Motors
- HDFC Life Insurance
- Dabur India
- Godrej Consumer Products
- Apollo Hospitals
- Gland Pharma
- Macrotech Developers
You can invest in these mid/small-cap companies
These stocks have corrected 20-30% from their 52-week highs.
- Canara Bank
- Jubilant Foodworks
- Ashok Leyland
- Dalmia Bharat
- Zee Entertainment
- Whirlpool India
- ICICI Securities
- GR Infraprojects
- Zensar Tech
- Mahanagar Gas
- Transport Corporation
Investors can take advantage of this correction by including these quality stocks in their portfolio. Motilal Oswal has selected those stocks which have potential for growth.
Russia-Ukraine War Impact: LIC IPO may be delayed, Finance Minister said, ready to reconsider timeline if needed
Rise in crude oil prices can affect the market
Motilal Oswal says that higher global inflation and the possibility of a hike in interest rates by the US Federal Reserve can affect the Indian stock markets. Due to the Russia-Ukraine war, the equity markets are also undergoing a correction and volatility has increased. The movement of the market will depend on how long this struggle continues.
The brokerage firm says, “From India’s point of view, a sharp jump in crude oil prices can affect the market. If high crude oil prices persist for a long period of time, inflation in India could increase and it could also affect the current account deficit, bond yields and interest rates. According to Motilal Oswal, FIIs have remained net sellers in India due to inflation concerns, higher bond yields and global rate hikes due to global tensions. Since October 2021, FIIs have sold shares worth $14.1 billion in the Indian market.
(Article: Harshita Tyagi)