Leading a Nifty rally, three among these advanced 38 to 50 per cent in the last one year. Market participants are now guessing who would be the next set of stocks leading the rally.
Apart from the entertainment industry, the stars of the economy are no less in making a buzz. Here in Mumbai: HRITIK is an acronym for index heavyweight stocks: HDFC Bank, Reliance Industries, ICICI Bank, Infosys and Kotak Bank put up a strong show in 2019.
Another section of traders which houses – SBI, Axis Bank, Larsen and Toubro, Maruti Suzuki, Adani Ports and National Thermal Power Corporation Limited (NTPC) – is betting on SALMAN — to lead the next rally.
The other face
Likewise, the Brokerages have maintained ‘BUY’ on SBI, betting on a recovery in India’s growth momentum. SBI gained over 12 per cent in the past year and closed on Friday at ₹337.25 a share. Nomura had estimated that the SBI’s Q2 asset quality beat its competitors.
The asset quality of the bank improved with gross non-performing asset (NPA) ratio coming in at 7.19 per cent, down 276 bps yearly and 34 bps sequentially.
Axis Bank, another standing ground, has also been traders and brokerages favourite. The index heavyweight along with RIL, ICICI Bank and HDFC were the preferred pick by the brokerage house CLSA.
Over the last one year, Axis Bank has gained over 15 per cent and closed at ₹739 apiece. The bank had reported a consolidated Interest Income of ₹12,183.88 crore, up 3.89 per cent from last quarter
Morgan Stanley upgraded the company’s shares to ‘Overweight’ from ‘Equal-Weight’ earlier, this foreign financial firm also set the NTPC on the rise. This came on the back of the government’s decision to approve strategic disinvestment in the power major.
It had, however, fallen 23.53 per cent in the last one year and closed at ₹114.55 a share on Friday.
The decline is real!
JPMorgan had recently reiterated ‘overweight’ rating on Maruti Suzuki and also raised its target price. The largest car manufacturer in India has, however, declined 8.58 per cent in the last one year and closed at ₹7,255 a share.
Larsen and Toubro had recently downgraded by Credit Suisse to ‘neutral’ from outperform and revised target price down to ₹1460 from ₹1750. The brokerage has downgraded the stock as macro continues to remain hostile in terms of the gap in government finances from tax shortfall and continuing credit growth deceleration.
It has fallen 8.64 per cent in the past year and closed at ₹1,310.75 a share.
Global brokerage houses are also bullish on Adani Ports and Special Economic Zone despite its quarterly results falling short of market expectations. Macquarie has also raised its target price on Adani. Adani Ports lost a little over one per cent in the last one year of trade and closed at ₹371.65 a share on Friday.