Pharma, insurance and power could be the dark horses of 2019, Sanjiv Bhasin, Executive VP-Markets & Corporate Affairs, India Infoline, tells ET Now. Sun, ITC, L&T, Hindalco and UltraTech are the five stocks that will prop up the market.
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We were just talking about the new leadership in the rising market. It has been about ICICI Bank, a comeback by Axis Bank and Reliance also has had a fair share of contribution. Do you think the next 500 points we be led by a new set of leaders or would leadership remain with corporate banks?
We are going to have a very early Diwali and Christmas and a Happy New Year, 12000 may be achieved before Diwali! Also 30,000 on the Bank Nifty seems very much seems on the cards.
The leadership has clearly changed. You mentioned three stocks but we have been placing our bets on Sun, ITC and L&T. Those are now going to be the next prop up.
ITC is leading the FMCG pack. It has gained almost 20% from the Rs 260-265 level where we have been extremely bullish. Sun is again in the eye of the storm as FDA investigations go on in the Halol plant.
L&T has come out with a buyback and they are sounding extremely positive on the economy. So, with those three, you can add a Hindalco and UltraTech and you will have the perfect five that will give the leg up to the market. And yes, like you said, Reliance, ICICI are taking it from the front.
Which stock to your mind will lead the surge on the Nifty, so far it has been a rotation between Reliance, ICICI Bank and Axis Bank, will this so-called trio of three horsemen will they continue to take the charge forward?
Correct. And these have been– Reliance for five years was in a hiatus and now in one and a half year it has been the best performing stock with a Rs 8 lakh crore market-cap, looking set for a Rs 10 lakh crore market cap next year. If the going is good, follow the strength.
And ICICI, Axis have been rerated after the change of guard and looking very good on the corporate side.
State Bank of India chairman says most of the NPA resolutions are over, you should see write-backs. So for the first time, corporate India and corporate lending is on the cards. State Bank itself will be a very good contributor. We are also placing bet on three of the underdogs — Sun, ITC, L&T. Hindalco looks set on the back of the Novelis buyout and that has been playing out brilliantly. We have seen a firming of both alumina and copper prices globally.
Do you have a view on Zydus Wellness?
No, I do not cover Zydus Wellness but I would say look at Pfizer. That stock has been on a tear and some of the MNC pharma are looking extremely good. Pharma, insurance and power could be the dark horses of 2019 and pharma will be an equal if not an outperformer contributor on the Nifty.
You can look at the midcap MNC stocks but I have not covered Zydus Wellness in the near term.
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