In conversation with Anil Singhvi, Rahul Arora says buy stocks of UltraTech Cement, Shree Cement, JK Lakshmi, Sagar Cement
Rahul Arora says target of Nifty could be in the range of 15000 – 15500, he said looking at the current Bull Run and market sentiment it seems that this target could be achieved before March 21. Markets slipped a bit prior to Budget, which was a good sign rather than being at life highs, because the downside risk would have been far more in case if the Budget was mediocre.
Rahul Arora says target of Nifty could be in the range of 15000 – 15500, he said looking at the current Bull Run and market sentiment it seems that this target could be achieved before March 21. Markets slipped a bit prior to Budget, which was a good sign rather than being at life highs, because the downside risk would have been far more in case if the Budget was mediocre. Markets moved from 13700 – 13800 to almost 15000 levels from Budget day till now. Nifty has almost doubles in less than 1 year and profit booking at current levels is not a bad idea.
There is lot of liquidity in the market at this stage. Domestic Institutional investors were buyers when Nifty moved from 7500 levels to 10000 levels and they started selling when Nifty crossed 11000 to 12000 levels. DII’s are holding good cash in hand at current levels and many institutions are holding 4% - 10% cash at current levels. Rahul Arora says he does not expect correction to be quite ferocious.
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In case market falls by 8-10% from current levels due to global uncertainty or any other issue, then market will get good support around 13000 levels and good buying can emerge at those levels. Any decent fall in the markets will give good opportunity to invest in quality stocks. Investors should increase their SIP or should deploy cash whenever they see decent correction in the markets.
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Rahul Arora thinks that this Budget 2021 was an Election Budget. Announcements related to capital spending, even if 65% – 70% of the announcements are implemented in terms of Infra Spending than it will give good boost to the Indian Economy. Manufacturing and Economy related stocks will get humongous benefit because of capital spending. All new capacities will come after 24 to 26 months. FY22 GDP of India will be extremely good due to lower base. Many analysts expect FY22 GDP to be in range of 10% to 12% while GDP numbers would normalize from FY23.
Modi Government has given excellent Budget 3 years ahead of elections, as announcements made at this stage would yield returns ahead of the elections. Money will from Pharma, IT, FMCG, Banking space to Manufacturing and Economy specific stocks. Indian Economy could be in a different orbit altogether if capital spending plans go well from here on.
Rahul Arora believes Cement sector and Auto Sector will do extremely well from here on. Cement is used from building homes, railway tracks or Ports. Cement will be used in each and every area of work. Scrappage Policy will ensure huge replacement of Commercial Vehicles, passenger vehicles, Medium and Heavy commercial vehicles. Currently, markets are witnessing CV cycle revival and Tractor sales have also been robust.
Rahul Arora recommends UltraTech Cement, Shree Cement from Large cap Space, JK Lakshmi, Sagar Cement and Birla Corporation from Mid cap space. In Auto sector, he suggests Ashok Leyland, Escorts and Mahindra and Mahindra.
Rahul Arora says Insurance sector will do extremely well from here on. Investors should look at HDFC Life, SBI Life and Max life. He likes PNC Infra and KNR Construction from road sector.
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