Best 21 Stocks to Buy : The momentum of the stock market remains bullish and in this sequence, today on July 3, 2024, the Sensex crossed the level of 80 thousand. Nifty also crossed 24300. In the month of June alone, Nifty has increased by 6.6 percent on a monthly basis. Talking about the year 2024, during this time the rally in midcap and smallcap continues. The question must be arising in the minds of investors that what will happen next in the market after such a rally. Brokerage house Motilal Oswal believes that the outlook for the Indian markets looks very strong for many reasons. The earnings of companies are strong, GDP growth is better, the level of inflation is decreasing. The market may get a boost from the upcoming budget. The brokerage has given a list of 21 largecap and midcap stocks for investment.
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Strong factors for the market
Brokerage house Motilal Oswal says that fundamentally, India is looking at its own mini-Goldilocks moment with strong macro conditions. GDP growth of 8.2% in FY24 and 7% in FY23. Inflation has come down to 5%, both current account and fiscal deficit are within the tolerance band and there is stability in the currency. Apart from this, strong corporate earnings are also supporting the market. Nifty ended FY24 with 25% earnings growth and FY25/26 earnings growth is likely to be 14-15% CAGR. There is an increasing focus on manufacturing, capex and infrastructure construction and valuation. Sectors whose valuations have become high and which have recently seen a significant rise may see a softening before becoming attractive again from a risk reward perspective. These include industrial, railway, defense and PSU sectors.
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Budget 2024-25 Preview
The brokerage says spending is likely to increase in FY25. From a Budget 2025 perspective, we believe the new government will largely retain its tax and non-debt capital receipts (including disinvestment) projections, as presented during the Interim Budget in February 2024. If that is the case, the transfer of Rs 2.11 lakh crore by the RBI indicates additional receipts of around Rs 1.5 lakh crore in FY25. We believe a large portion of these additional receipts will be spent under various heads, while a smaller portion may be used to reduce the fiscal deficit.
Top Largecap Stocks Ideas
ICICI Bank
ITC
HCL Tech
Coal India
SBI
L&T
M&M (Mahindra & Mahindra)
Zomato
Ultratech (UltraTech Cement)
Cholamandalam Investment and Fin (Cholamandalam Investment)
Hindalco
These stocks could not even beat the returns of FD in 5 years, got returns of only 1 to 4.50%, have you invested in any of them
Top Midcap Stocks Ideas
Indian Hotels
Ashok Leyland
Godrej Properties
Global Health
KEI Industries
PNB Housing
Cello World
Senco Gold
Kirloskar Oil
How much did the market grow this year
Talking about the year 2024, so far the Sensex has gained more than 7650 points or about 11 percent. At the same time, the Nifty has gained more than 2525 points or about 11.50 percent. During this period, the midcap index has gained 26 percent and the smallcap index has gained 22 percent. Bank Nifty has grown 10 percent and Nifty IT has grown about 5 percent. The broader market i.e. BSE500 has gained about 17.29 percent.
(Disclaimer: Investing or selling stocks is advised by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)