PL has picked 7 largecap counters viz. HDFC Bank, ICICI Bank, Larsen & Toubro (L&T), Max Healthcare Institute, Maruti Suzuki, Reliance Industries (RIL) and Siemens. In the mid and smallcap universe, the top buys include the likes of Astral, Can Fin Homes, Eris Lifesciences, Grindwell Norton, Navneet Education, Praj Industries, RR Kabel, Safari Industries (India), Sunteck Realty and TCI Express.
The latest target is an upward revision from the previous target of 25,363. The new estimated target is a 3,660 points gain over the Friday closing of 22,147.
Prabhudas sees June as a turning point not just from a political uncertainty front but also on the monsoon front as it will be clearer by then as to who assumes power in the Centre along with the monsoon season turnout.
Off its lifetime high of 22,776 by 4%, Nifty’s decline comes on the back of rising geopolitical uncertainty, rising crude and commodity prices and conflicting views on expected US Federal Reserve interest rate cuts.
While India is in the midst of General Elections, which PL termed as “the most important event of this decade”, the brokerage’s analysis showed that the economy and markets have done well under both the NDA and UPA (INDIA) given strong tailwinds of demographics.The first phase of polling for 102 seats across 21 states was on April 19, Friday.While opinion polls predict an NDA win, a 2004-like election outcome – where the then government led by former PM Atal Bihari Vajpayee lost – could be a shocker in PL’s view. It maintained that the markets are not prepared for such a scenario. The BSE Sensex declined 15.5% on election result day on May 17, 2004.
The brokerage highlighted how NDA scores over the UPA in implementing key reforms and focus on infra development.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)