Nifty may hit 19000 by March next year, Q1FY23 trends remain robust; ICICI Sec bullish on rate sensitive shares, picks 25 stocks—Full list
Despite calendar year (CY) 2022 starting on a negative note with Omicron scare, fear of nuclear war between Russia and Ukraine, inflation and rising bond yield, the trends for Q1FY23 remain robust.
Despite calendar year (CY) 2022 starting on a negative note with Omicron scare, fear of nuclear war between Russia and Ukraine, inflation and rising bond yield, the trends for Q1FY23 remain robust.
"High-frequency indicators for Q1FY23 so far appear robust and indicate economic recovery is on course," said ICICI Securities in a note on Monday.
It said that along with these multiple headwinds, more than expected hawkishness of the US Federal Reserve and India’s RBI resulting in an increase in the ‘risk free rate’ as sovereign bond yields spiked and acted as a double whammy for equity valuations.
However, with sharp reduction in omicron cases, stabilising commodity and bond yields, Ukraine-Russia war scaling down from global nuclear brinkmanship to a local conflict, economic recovery appears on course and they put a put a floor on equity valuations too, said the brokerage.
"Dip in the latest PCE inflation data for the US, general cooling down of commodity prices and the expected increase in oil output by OPEC+ will likely add credence to the peak inflation argument," said ICICI Securities.
Based on its evaluation, the brokerage sees Nifty hitting 19,000 in March 2023. "Incorporating these factors and trends, our Mar’23E target for the NIFTY50 stands at 19,000," it said.
The brokerage was overweight on stocks driven by investment rate, savings rate, credit growth, exports and pent-up discretionary consumption.
ICICI top 25 stock picks:
SBI, Axis Bank, HDFC Bank, Aditya Birla Capital, SBI Life, Larsen &Toubro, NTPC, NHPC, GAIL, Oil India, Coal India, UltraTech Cement, Bharti Airtel, Tata Communications, Gujarat Fluorochemicals, Phoenix Mills, Brigade Enterprises, Greenpanel Industries, Indian Hotels, Jubilant Foodworks, Metro Brands, Sapphire Foods, Inox Leisure, TVS Motors, Eicher Motors.
Meanwhile, equity benchmarks Nifty 50 and Sensex have managed to give a positive return of 2-2.5% in the past three months as on June 6, 2022. During the same period, Auto, FMCG and Energy stocks have gained the most as Nifty Auto and FMCG rose 14% and nearly 11% respectively, while BSE Energy gained around 12% so far on Monday.
At around 2pm on Monday, the broader Nifty50 was trading flat with positive bias and was approaching 16,600-mark, while 30-share was trading 20 points higher to around 55,800.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
11:19 AM IST