Homemarket Newsstocks News

    Motilal Oswal says challenging time ahead for market, IT sector best defense

    market | IST

    Motilal Oswal says challenging time ahead for market, IT sector best defense

    Mini

    Talking about top stocks on the list, he said, “Our preference is more driven towards financials, a bit of consumption and some bit of discretionary lifestyle related stocks.”

    Next couple of months are going to be difficult for the markets as there are more headwinds such as delayed monsoon and poor auto sales numbers, said Gautam Duggad, head of research at Motilal Oswal Financial Services.
    IT comes out as a strong defence right now given that consumer is a very expensive sector and in pharma, there is no earnings growth plus there are many headwinds in pharma, according to Duggad.
    "Therefore, IT remains the sole defense pack right now with a reasonable valuation and within that our preference is more towards tier-I names like Infosys, Tech Mahindra,” he added. Duggad said Mindtree will continue to be volatile until Larsen & Toubro (L&T) open offer gets completed.
    “IT will give 8-10 percent growth plus decent capital returns, which is going on be it through dividend or share buyback. So IT sits well in our portfolio as a defensive pack and we are positive on IT,” he further added.
    Talking about top stocks on the list, he said, “Our preference is more driven towards financials, a bit of consumption and some bit of discretionary lifestyle related stocks.”
    > Financials: Federal Bank, AU Small Finance Bank and RBL Bank
    > Consumption: Aditya Birla Fashion and Retail (ABFRL), Trent, Indian Hotels Company.
    > Agriculture: Godrej Agrovet
    Real Estate: Oberoi Realty Brigade Enterprises
    > IT: Zensar Technologies
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    next story

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng