stock market portfolio: Kotak Equities drops Samvardhana Motherson, adds 2 new stocks to portfolio

Kotak Institutional Equities (KIE) has removed Samvardhana Motherson International from its recommended portfolio as it sees a moderate upside to its 12-month fair value of Rs 105. The stock has rallied 37% over the past six months and missed its price target by a whisker on September 5, when it hit its 52-week high of Rs 103.50 on the NSE.

The stock has corrected by over 12% from the peak in just two sessions.

However, Kotak remains optimistic about Samvardhana Motherson’s fundamentals and long-term prospects even as it sees near-term headwinds from global growth challenges. The stock carried a weight of 160bps before getting ejected from Kotak’s portfolio.

The domestic brokerage instead included Colgate Palmolive and Cummins India in its recommended portfolio, with a weight of 150 bps each while reducing positions in Axis Bank by 35 bps to 7.2% and Mahindra & Mahindra by 40 bps to 200 bps. Titan, a Tata Group company also saw a cut in its weight by 60 bps to 150 bps.

There are nearly three dozen stocks in Kotak’s model portfolio from banks, automobiles & components, IT services, capital goods, consumer staples, pharmaceuticals, and real estate. Some of them are HCL Technologies, Infosys, Mahindra & Mahindra, Canara Bank, HDFC Bank, Britannia Industries, Power Grid, Apollo Hospitals, DLF and Reliance Industries.

Kotak altered its strategy from a bull market to a bear. “We see better investment opportunities and reward-risk balance in the top largecap names than in other parts of the market with varying degrees of optimism to euphoria,” the note said.

The largecap laggards of 2022-23 are expected to do better over the next 6-12 months while other large-cap and quality midcap stocks could see a period of time correction, Kotak said. “Narrative-based mid and smallcap stocks will eventually see large price or lengthy period of time correction,” the note added.It further sees the Indian economy moving into a riskier phase as macroeconomic fundamentals have shifted adversely in the past few months. Growth prospects remain modest but stable, with a few areas of concern.

“Adverse risks have increased for inflation (longer time required to reach the 4% target), fiscal situation as pressures from the election cycle and consolidation mounts and external balance with higher crude prices and higher-for-longer global rates remain at play,” the brokerage noted.

It has adopted a cautious stance amid near-to-medium-term macro risks.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Top Trending Stocks: Sensex Today Live, SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Secular Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – seculartimes.com. The content will be deleted within 24 hours.

Leave a Comment