Zomato, SBI, ITC among Motilal Oswal’s top 11 largecap picks
Nifty is currently trading at a 12-month forward PE of 19.4x versus LPA of 20.3x. Motilal Oswal selects 11 largecap stocks as its top ideas, Of these two are non-Nifty players
Notwithstanding a near 30% uptick over the past 12 months, Nifty's current 12-month forward P/E ratio is largely in line with its long-period average (LPA), said in a note as it picked up 11 largecap stocks as its top ideas. Of these, nine are Nifty constituents while the non-Nifty players include and Gail (India).The Nifty stocks picked by Motilal are Larsen & Toubro (L&T), (SBI), , , , Mahindra & Mahindra (M&M), , and .
Nifty is currently trading at a 12-month forward PE of 19.4x versus LPA of 20.3x. In contrast, the broader index NSE Midcap 100 index is trading at a 46% premium to the 50-stock Nifty, which is "expensive" in valuation terms according to the brokerage.
India is enjoying a confluence of best macro and micro tailwinds with moderating inflation, range-bound crude prices, easing 10-year G-sec yield, stable currency and resilient corporate earnings, Motilal said as it sees markets taking their cues from the outcome of the Lok Sabha elections and the timing and quantum of rate cuts in India and globally.
The sectors to watch out for will be PSU banks, industrials which include capital goods & cement, real estate, consumer discretionary, and NBFCs.
Motilal remains underweight on IT and metals while upgrading energy to 'neutral' and downgrading auto and pharma to 'neutral' in its model portfolio.
Motilal's mid & smallcap bets include Indian Hotels, Godrej Properties, Sobha Developers, Dalmia Bharat, IIFL Finance, Cello World, PNB Housing Finance, Lemon Tree and Global Health which operates the Medanta chain of hospitals.
Nifty's April series so far has been mixed after a volatile March where the headline index managed to end with 1.6% gains on a month-on-month basis. This was its second successive positive monthly closing where a lifetime high of 22,527 was scaled.
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Source: Stocks-Markets-Economic Times
