Maintaining its Nifty target of 20,200, Axis Securities said that the earnings momentum would be the critical factor for the market performance moving forward. The near-term focus will be on the Q3FY22 earnings and Union Budget 2022, it said in a note.
Based on the above themes, Axis Securities has recommend the following stocks as its top picks for January 2022, which includes State Bank of India (SBI), Rakesh Jhunjhunwala portfolio stock Federal Bank, ICICI Bank, HCL Technologies, Bajaj Auto.
Tech Mahindra, Maruti Suzuki India, Bharti Airtel, Dalmia Bharat, Varun Beverages, Ashok Leyland, Bata India Ltd, Krishna Institute of Medical Sciences, Equitas Small Finance Bank, Mold-Tek Packaging, Amber Enterprises India are also among the brokerage house’s top stock recommendations for this month.
“The IT is sector likely to post another robust quarter after a positive outlook posted by the global IT major Accenture. Overall demand scenario would be a key monitorable. Price hikes are expected in certain pockets to offset rising costs while some margin improvement is likely to be visible with some cooloff in raw material prices,” the note stated.
Axis Securities is overweight on sectors like IT, specialty chemicals, metals and mining whereas has an equalweight stance on pharma, real estate, consumer staples sectors.
Value and Quality stood as our top-performing styles in the last one month while Growth continued to lag. Largecaps is likely to catch up in the near term. The momentum theme has seen good traction in recent months followed by Value and Quality themes, the brokerage note added. “Though, large caps have outperformed small and midcaps in the last 3 months, Value seems to be emerging in the small and midcap stocks, providing attractive investment opportunities in the broader market.”
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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