Indian Stock Market Hits Record High: SBI Securities Recommends Top 14 Stocks for Investment
The Indian stock market is currently at a record high level, with both the benchmark indices, Sensex and Nifty 50, reaching new peaks. This surge in the market sentiment can be attributed to strong domestic macros and increasing optimism over central banks easing monetary policies and potentially cutting interest rates soon.
On March 7, the Sensex set a new all-time high of 74,245.17, while the Nifty 50 also hit a fresh record high of 22,525.65 in intraday trade. Despite the premium valuation, the Indian market is still trading at a cheaper valuation compared to developed markets like the USA and Japan.
Analysts at SBI Securities believe that the premium valuation is supported by robust earnings growth, stable government policies, a recovery in the capex cycle, and a significant focus on infrastructure development. They also predict that India will continue to trade at a premium valuation due to its stable economic and political environment, strong corporate earnings growth, improved asset quality, and healthy return ratios.
SBI Securities has identified 14 stocks as their top picks based on Q3FY24 results, with potential upside ranging from 15% to 26%. These stocks are recommended for investment with a horizon of 12 months. Some of the top picks include Mahindra & Mahindra, Ambuja Cements, Cipla, Tata Consumer Products, and JSW Infrastructure.
The stock selection philosophy of SBI Securities focuses on companies with strong management, solid corporate governance, supportive industry outlook, business growth visibility, attractive margins, return ratios, healthy balance sheets, and a strong historical track record.
Investors are advised to consult with certified experts before making any investment decisions.
