Even as you look for various ideas to give an edge to your portfolio this Samvat 2075, a few bluechip stocks including RIL and ICICI Bank could brighten up your Diwali.
Even as you look for various ideas to give an edge to your portfolio this Samvat 2075, a few bluechip stocks including RIL and ICICI Bank could brighten up your Diwali. The Sensex has managed to move up by about 5% since last Diwali, in what has been a very volatile year so far. Taking stock of the year so far, Axis Direct said in a note that US China trade tensions, rising crude oil prices, depreciating rupee, NBFC crisis caused by the recent IL&FS issue have been collectively responsible for the recent plunge in the markets, wiping away the entire gains made in the last one year in a matter of just two months. However, the country’s business environment is running strong and companies are expected to deliver robust growth driven by consumption-led demand, Axis Securities said suggesting Muhurat picks for Samvat 2075. With this backdrop, we bring to you two blue chip stocks that could lighten up your Diwali this time around.
Shares of Mukesh Ambani-led Reliance Industries have been one of the few bluechip stocks which have outperformed the Sensex in year-to-date terms. RIL shares have returned about 16% since January, while the BSE Sensex has moved up by less than 1%. Axis Direct has a target price of Rs 1,346, implying an upside of 27% from the current market prices. Axis Securities notes that Reliance Industries’ retail business will drive growth in the coming year. The acquisition of DEN and Hathway will also provide a fillip to RIL’s business. Further, Reliance Jio, which added 37 million subscribers in the latest quarter will remain a trump card for the firm. The petcoke gasification unit at Jamnagar will also boost profits, increasing GRMs by up to $2 per bbl, noted Axis Securities.
Axis Direct has a target share price of Rs 372 on ICICI Bank shares. According to the firm, ICICI Bank is making a concerted effort to shift its funding to low cost term-deposits from wholesale term deposits. This is slated to improve ICICI Bank’s funding profile, and will boost its NIM (net interest margin). Further, the bank has been successfully leveraging technology to augment the contribution of NII towards its profitability. Interestingly, Axis also notes the appointment of Sandeep Bakshi as MD and CEO of Axis Bank puts to rest the uncertainty in the bank. The focus will now shift towards growth and NPA resolution, noted Axis Direct. ICICI Bank shares are trading at Rs 348.25 on BSE this afternoon.