While sharing its top Diwali Muhurat Picks, HDFC Securities in a report said that volatility in the domestic equity market may continue in Samvat 2079, though at a slower pace. The brokerage also thinks that the resumption of growth at the global level and particularly on the domestic front is required to shake off the sluggish mood and get back on the path of a sustained uptrend in the markets.
Considering the present market situation, it is positive for domestic-oriented businesses and themes like healthcare, defence, banking, entertainment and infrastructure for the next year. With a focus on these themes, HDFC Securities recommended 10 stocks for Samvat 2079.
The list includes players like Aster DM Healthcare (Target price: Rs 278), Bharat Dynamics (Rs 1,022), Bharat Electronics (Rs 123), Birla Corporation (Rs 1,069), Cipla (Rs 1,283), Deepak Fertilizers (Rs 1,058), ICICI Bank (Rs 999), Rail Vikas Nigam (Rs 42.25), Sun TV Network (Rs 624) and TCI Express (Rs 2,169).
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Overall, Samvat 2078 turned out to be a challenging year for global equities, given the many headwinds, including rate hikes, the energy crisis, the Russia-Ukraine conflict, continued supply disruptions, FPI outflows and heightened inflation, among others.
“We saw heightened volatility in the markets – more on the downside. Indian equity markets, however, proved resilient and outperformed most developed and emerging economies. Robust retail, HNI SIPs and lumpsum inflows helped offset the large outflows from FPIs without too much damage to the indices,” HDFC Securities said.
In the first half of the Samvat 2078, firm commodity prices, high employment in the US and surging inflation, led to a clampdown by central banks, which is now resulting in some cool-off in commodity prices and slowing global economic growth.
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“The Indian economy remains in a sweet spot relative to many other economies, given the large demography, higher domestic dependency, as well as the astute handling of uncertain times by politicians and the bureaucracy. However, any prolonged delay in the resurgence of growth globally could hold back India’s growth story in the interim. This is despite the fact that India is in a very good position to withstand such times compared to a lot of other countries,” HDFC Securities said.