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market | IST

Next 6 months is going to be a breather time for most IT stocks, says IDFC Securities

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According to Anish Damania, CEO & head of Institutional Equities at IDFC Securities, companies which will exhibit strong earnings growth trends will dominate the outperformance scenario.

According to Anish Damania, CEO & head of Institutional Equities at IDFC Securities, companies which will exhibit strong earnings growth trends will dominate the outperformance scenario.
“We see consumption stories continue to dominate the trend. In the capital goods space as well companies have reported very good numbers, so we have recently upgraded Larsen & Toubro (L&T) to a buy. The stock has also corrected reasonably well over the last one year, so that gives a lot of cushion,” said Damania on Monday.
Talking about the banking sector, Damania said, “Corporate banks is something where one needs to focus on now given that the valuations are reasonable and probably a lot of the problems are behind them and retail banks are anyways okay. Therefore, from that perspective all companies which will exhibit earnings growth now are the companies where we need to focus on."
On the individual stocks front, Damania said, “Maruti is our top pick. It has corrected about 30 percent odd from its peak. The good time to buy auto stocks will be when the cycle is weak and Maruti stands out in that.”
“The other stock where exist some scope given that the valuations have also fallen is Hero Motocorp,” Damania added.
 
 
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