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Edelweiss advises caution despite market rebound; here's a look at its top picks

Edelweiss advises caution despite market rebound; here's a look at its top picks

Edelweiss advises caution despite market rebound; here's a look at its top picks
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By Pranati Deva  Jul 8, 2020 2:00:16 PM IST (Published)

Edelweiss Securities, in a recent report, has come out with a market strategy and its top largecap and midcap stock picks to invest in.

After a tepid start to the month, June saw an over 1000 points rally in Nifty during the latter half of the month, primarily fuelled by positive global sentiments and as governments across the world gradually eased the lockdown restrictions.

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Now that the markets seem to be in a recovery mode. Edelweiss Securities, in a recent report, has come out with a market strategy and its top large-cap and midcap stock picks to invest in.
As per the brokerage, the hopes of further stimulus from governments to battle the lockdown related slowdown and value buying in beaten-down sectors kept markets afloat this month, in spite of poor economic data and cautious commentaries by most managements.
But the brokerage advises investors to remain cautious and watchful on markets in the current scenario.
"In our view, the coming month should remain volatile and stocks which have rallied the most in the last two months would see sharp profit booking," the report stated.
It continues to maintain a positive bias for rural focussed and strong balance sheet stocks.
The top sectors to bet on going forward are two-wheeler and tractor stocks, large private banks, insurance, specialty chemicals, cement, and metals, it noted.
However, the brokerage remains watchful of commercial vehicle and passenger vehicle sector, weaker banks, infrastructure, discretionary consumption, IT, and NBFCs.
Edelweiss' large-cap portfolio includes Asian Paints, Titan, Pidilite, Bharti Airtel, Axis Bank, ICICI Bank, DF Life, HDFC, Eicher Motors, Infosys, RIL among others.
In July the brokerage has added Muthoot Finance to its large-cap portfolio while reducing weights in Axis Bank and HDFC Life.
In the midcap space, the brokerage likes Astral Poly Technik, Bata, JK Cements, MindTree, Voltas, PI Industries, Trent, Tata Consumer, SRF, among others.
It added Lumax Industries, Can Fin Homes and Godrej Properties in its midcap list this month.
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