“This market is a stock pickers paradise, and sector rotations are very active. IT index has joined the bandwagon and is within striking distance of its all-time highs.”
Singh finds the power and pharma sectors most promising at the moment, but consumption, not so much. He believes some new-age companies are also coming of age.
Brokerage house InCred Equities sees FY24 Nifty target at 21,103 and maintains an ‘overweight’ stance. Meanwhile, it recommends booking profits after a 20.8 percent return from the Nifty Infrastructure index in the last six months.
The Nifty 50 index is now trading at 20.3x FY24 and ~17.6x FY25 consensus EPS. Valuations look fair now on an FY25 basis and risk-reward is balanced, said HDFC. Its preferred sectors are large-cap banks, industrial and real estate, power, autos, pharma, OMCs, gas, and capital markets.
Indian market has taken all headwinds in its stride and the action has been very stock-specific as Mid/small caps continue to outperform large caps, Prabhudas Lilladher stated. It lists its top large, mid and smallcap picks for model portfolio.