JM Financial's Abhijeet Bora Releases Diwali Picks, Expects Single Digit Growth from Nifty

Strategic Insights -

JM Financial Services Ltd.'s Abhijeet Bora has released his Diwali picks, a list of 10 stocks that he believes offer reasonable valuations and growth potential. Bora's list includes a mix of large and mid-cap stocks across various sectors, with a focus on companies that have reasonable valuations and growth prospects. However, Bora warns that the market may remain volatile, with a possible single-digit growth from the Nifty 50 in the current fiscal year.

Key Takeaways:

  • Bora's Diwali picks include Reliance Industries, Power Grid, Jindal Steel, Bajaj Finance, Gravita, and Ashoka Buildcon, among others.
  • The analyst expects a single-digit growth from the Nifty 50 in the current fiscal year, with a possible correction in the broader market.
  • Bora believes that the market has become more aligned with the earnings growth expectations, which are expected to be around 7-8% in the current fiscal year.
  • The analyst is cautious about the banking sector, citing issues of deposit and loan growth, and expects a systematic growth in the loan portfolio for banks.
  • Bora has a target price of Rs 1150 for Jindal Steel and Power, expecting a significant rerating due to margin recovery and capacity expansion.

Statistics:

  • 10 stocks are part of Bora's Diwali picks.
  • Reliance Industries has a target price of Rs 3500, with a buy rating from the analyst.
  • The earnings growth for Nifty 50 companies is expected to be around 7-8% in the current fiscal year.
  • The analyst expects a correction in the broader market, with a possible single-digit growth from the Nifty 50.

Sources:

  • Interactive session with Abhijeet Bora, Head of Institutional Equities at JM Financial Services Ltd., on Times Content.