05 Nov , 2021 By : Kanchan Joshi
Nifty continued to reach new highs in October with the index up 26% this year so far. Midcaps too outperformed and contributed to the gains significantly in the recent bull market rally. The increase in volatility was on the back of weak global cues, stretched valuations, and FIIs turning net sellers, said Motilal Oswal.
Among the sectors, PSU Banks, autos, media, utilities and private banks were the top performers in October 2021. Consumer, Healthcare, real estate, telecom, and technology were the key laggards last month.
Tata Motors, ICICI Bank, SBI, Titan, and M&M were the top performers among individual stocks. On the other hand, Coal India, Eicher Motors, HCL Tech and TCS led decliners.
For midcaps, brokerage house Motilal Oswal has suggested SAIL, Zensar, APL Apollo Tubes, TCI, Ramco Cements, Indian Hotels, Orient Electric, ABFRL, Chola Finance, Endurance as its top stock recommendations.
“The country saw the third consecutive year of normal monsoons, with the southwest monsoon season ending 0.7% short of the long-period average. Macroeconomic trends saw good recovery, with high-frequency indicators (GST collections, e-way bills, PMI readings, and fuel demand) improving month on month. Exports have emerged as a growth engine – India reported more than USD100b worth of exports in 2QFY22, the highest ever in a single quarter. The normal monsoon season is likely to further spur rural demand, and with the government balance sheet in good stead, we expect the government to press the fiscal pedal to drive growth in 2HFY22," the brokerage said in a note.
Meanwhile, ICICI Bank, SBI, Infosys, UltraTech, Bharti Airtel, Titan, Divi’s Labs, Hindalco, SBI Life, Jubilant Foodworks are its top stock picks for largecaps.
The 2QFY22 earnings season has thus far been above estimates, benefitting from strong growth in the Technology sector, steady recovery in loan growth, the economic unlock driving growth in Consumer and retail, Motilal Oswal added.