Sensex, Nifty close to life-time high. Experts recommend these 10 stocks to buy
Stock market next week: Indian stocks witnessed sharp upside move on Friday session negating negative pattern of bearish engulfing on Thursday. In fact, NSE Nifty and BSE Sensex ended at its life-time highs on last session of the week gone by. NSE Nifty closed at 18,826, which is near 61 points away from its life-time high of 18,887. BSE Sensex finished at 63,384 levels, near 199 points away from its life-time high of 63,583 levels. After last week’s participatory rally on Dalal Street where small-cap and mid-cap indices hit life-time high, market is sensing that Nifty and Sensex may also climb a new peak following Bank Nifty, small-cap and mid-cap indices.
On factors that helped Nifty and Sensex to end near record highs, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, “The stock market rally was driven by strong cues from the global markets, as well as by several domestic factors, including strong FII flows, a growing risk appetite, and the FTSE Index rebalancing. The FTSE Index rejig has helped to boost investor sentiment and could boost foreign investment into Indian equities by around $250 to $270 million. In the latest rebalancing, the FTSE Group included a number of Indian stocks in its indices, which has made Indian stocks more accessible to foreign investors.”
“Further fuelling the euphoria, market participants are anticipating that the US Fed is nearing the end of its monetary tightening campaign. The combined market capitalization of all listed companies on the BSE has risen by ₹2.03 lakh crore to reach a record ₹292.8 lakh crore, significantly favouring bullish sentiments. There has been broad-based participation from almost all the sectors in this leg of the up move, where Nifty Infra, Nifty FMCG, and Midcap Index hit a new high on Friday,” Sugandha added.
Will Sensex, Nifty climb a new peak?
On whether Sensex and Nifty would be able to climb a new peak, Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, “The near term uptrend of NSE Nifty and BSE Sensex remains intact and the one may expect it to register new all time highs in the coming week.”
Expecting stock market rally to continue further, Siddhartha Khemka, Head – Retail Research at Motilal Oswal said, “Indian equities are set to make an all-time high on the back of a strong rally in global markets supported by healthy domestic cues.”
Stocks to buy next week
In sectors that may fuel Nifty and Sensex to record highs after other indices, Sandeep Pandey, Director at Basav Capital and former Deputy Vice President of HDFC Bank said, “After hawkish ECB and Bank of Japan, other central banks across world are expected to follow suit. In such a scenario, US dollar is expected to remain under pressure and continue to fuel auto and manufacturing stocks.
Batting in favour of consumer durable and FMCG stocks, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Due to weakness in the US dollar, domestic consumption oriented segments like real estate, consumer durables and FMCG segment is expected to dominate Indian stock market in near term.”
Buy or sell stocks
On stocks to buy next week, stock market experts recommended 10 stocks belonging to auto, real estate, FMCG, consumer durable and manufacturing segments and those 10 stocks are Mahindra & Mahindra (M&M), Tata Motors, Ashok Leyland, Maruti Suzuki India Ltd, Dabur, HUL, Polycab, Deepak Nitrite, DLF and Sobha.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 17 Jun 2023, 12:26 PM IST
