In an interview with ETMarkets, Chouhan said: “Our fundamental picks for Samvat 2081 are Aadhar Housing, Axis Bank, FIEM Industries, Gravita, Godrej Agrovet, JB Chemicals, SH Kelkar and Zomato,” Edited excerpts:
It is turning out to be a volatile October but it looks like Nifty has good support around 24500-25000 levels. What is your take on markets?
Domestic equity markets have been seen some correction led by global headwinds emanating from the geopolitical front and FII selling.In the near term, the markets may remain volatile amid geo-political conflict, upcoming US Presidential elections and Q2FY25 result season.What are your expectations for Samvat 2081? Any top picks you have on your radar?
India’s macroeconomic position remains relatively better. GST collections, IIP numbers, trade figures, fiscal deficit, strength of INR and other indicators continue to remain healthy.We expect continued improvement in the affordability equation for low-income households. Domestic inflows and non-institutional sentiment will likely cushion the impact from FII selling to some extent.As the broader market valuations are rich, opportunities arising from market correction can be used to add quality stocks (with attractive valuations) from a long-term investment perspective.
Our fundamental picks for Samvat 2081 are Aadhar Housing, Axis Bank, FIEM Industries, Gravita, Godrej Agrovet, JB Chemicals, SH Kelkar and Zomato.
What about sectors – which sectors are looking bullish till the next Diwali?
We are positive on BFSI, Realty and Pharm sectors
Any sector which you recommend investors to pare their positions?
Stocks in capital goods, oil marketing companies.
Big ticket IT firms have declared their results for Q2. The BSE IT index has risen more than 20% in the last 6 months. What is the sense you are getting from the management commentary?
Infosys reported steady revenue growth and stable EBIT margin. We believe Infosys has the elements to deliver industry-leading revenue growth once the demand environment improves.
For TCS, a balanced portfolio of services and track record of strong execution keep us constructive on the stock. IT companies reported subdued numbers, but their commentary suggests a gradual recovery ahead.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)