Synopsis
While dividend yield is a key parameter that aids returns of PSU stocks, the absolute price performance does not tell a very compelling story.
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While BSE Sensex has risen more than 79 per cent from its March lows, BSE PSU Index has added 39 per cent in the same period. Also, while Sensex has gained 11.5 per cent year to date, BSE PSU Index has dropped 20 per cent.
MUMBAI: Value is emerging in the PSU (public sector undertakings) pack as we enter 2021, and select stocks from this space should draw attention as valuations appear stretched elsewhere.
That seems to be the consensus view of a dozen analysts who took part in the ETMarkets New Year Survey.
NEW DELHI: Every year, a certain theme decides market movement on Dalal Street and helps a certain sector outperform the others. If one can spot the dominant theme of a year, chances are she will have the widest smile at the end of it.
The themes of 2020 were digitisation and healthcare. In the years before that, the themes of financialization or consolidation in industry decided the winners and losers on Dalal Street.
So, what can be the dominant theme for the next calendar? Analysts who took part in this year s ETMarkets New Year Survey picked themes that were as varied as their investment styles.
Synopsis
Sensex and Nifty have risen 14 per cent and 13 per cent, respectively, for the year to date, while BSE midcap and smallcap indices have risen 19 per cent and 30 per cent, respectively.
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Garg expects midcap and smallcap stocks to continue their momentum on the back of expected double-digit returns, attractive valuations, strong earnings revival and robust institutional flows.
MUMBAI: Midcap and smallcap stocks may continue their outperformance in 2021 as well, after beating the benchmark indices in the calendar year gone by. That’s the near-consensus view of a dozen analysts who took part in the ETMarkets New Year Survey this past week.
Synopsis
Bharti Airtel seems to be a consensus favourite, with many analysts naming it as their top stock pick for 2021.
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These stocks largely belong to the insurance, IT, pharma, chemicals, banking and telecom sectors. Many of these have already seen heavy buying in last one year.
NEW DELHI: Most value investors believe it is better to have a portfolio of a handful of stocks that one can easily track than investing in a dozens of stocks and suffer unwanted losses due to lack of focus.
But it may not be an easy task to find those handful of names from among the 3,000-odd stocks that are actively traded on BSE. So, as a New Year gift to you, we asked a number of Dalal Street analysts, as part of ETMarkets New Year Survey, to do that job for you.
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The BSE Sensex has gained nearly 14 per cent year-to-date till December 17 while BSE Midcap Index has advanced 20 per cent and BSE Smallcap Index 30 per cent.
After a lull of two years, the broader market indices have managed to outpace the benchmark indices this Calendar, as some of the foreign institutional investors’ money flowed into midcaps and smallcaps on attractive valuations.
The BSE Sensex has gained nearly 14 per cent year-to-date till December 17 while BSE Midcap Index has advanced 20 per cent and BSE Smallcap Index 30 per cent.
Analysts said the ongoing momentum in second-rung stocks is likely to continue in 2021.