Here’s What KR Choksey, Raamdeo Agrawal, Ramesh Damani Have To Say Going Into Samvat 2075
Indian equities began Samvat 2075 by clocking their best Diwali gains in a decade after nearly wiping out the yearly gains on concerns over higher crude price and a weaker rupee.
As Indian stocks enter the new trading year, there are enough pockets of value to invest in, said market veteran KR Choksey.
Yet, he sounded a note of caution. “Don’t put money in stocks which have no track record.” While large-cap stocks are currently the best investments, it’s important to look at the valuations, Choksey, who’s top picks for the year include Deepak Nitrate Ltd., Nocil Ltd., JK Paper Ltd. and Jamna Auto, told BloombergQuint in an interview.
Agreed Ramesh Damani, member of BSE Ltd. “The recent correction is just a break in the bull market.”
Raamdeo Agrawal, joint managing director of Motilal Oswal Financial Services Ltd., said the markets have seen deep corrections and valuations are now very reasonable. India, he said, is beginning to see a serious capital expenditure cycle after 10 years that should benefit construction and infrastructure industries.
Indian stocks have been Asia’s top performer until recently, touching record highs in August. But surging oil prices, weaker rupee and the liquidity crisis among non-bank lenders triggered by a default at IL&FS group soured sentiments. The NSE Nifty 50 Index rose less than a percent so far this year. That compares with more than 27 percent rise in 2017.
Yet, Agrawal said the weakness in non-bank financial companies presents an opportunity for large private sector banks. “A large asset base and wider presence gives large private sector banks an edge over others.”
Also read: Ten Things I’ve Learned Since Last Diwali
The Election Factor
As BloombergQuint spoke to the trading and investment experts, the upcoming state and general elections in India seemed to be one of the biggest uncertainties.
“Election is always a very questionable issue, but (Prime Minister) Modi has done a good job,” Choksey said. Reforms like demonetisation and the goods and services tax, according to him, may have a positive impact on the minds of voters.
Going into election season, Damani bets on casino and liquor industries. “It’s a good time to buy stocks which are unfairly punished in the recent correction.”