Sanjiv Bhasin believes new highs are here to stay and expects PNB, Canara Bank, Union Bank, and Dhanalakshmi Bank to perform well. He also highlights the positive numbers from ICICI and suggests now is a prudent time to buy HDFC Bank. Bhasin mentions the potential for a 200-300 point rally in the Nifty due to value-buying and short-covering. He suggests looking at PSU banks, FMCG, select auto stocks, and Nestle for outperformance.
Steady demand, lower input costs and stable interest rates supported the performance of corporate India in the September quarter. The energy and automobiles sectors contributed the most to India Inc.’s profitability. As many as 490 companies of the Nifty 500 index reported an aggregate revenue and net profit (adjusted for extraordinary items) growth of 1% and 43%, respectively, on a y-o-y basis. Excluding the financial sector stocks, the aggregate EBITDA of 405 stocks grew 40.7% y-o-y.