2021: Stocks to Buy
Ending the year at highs records, Indian share markets staged a smart recovery in the calendar year 2020.
On a YTD basis, broader indices delivered 15% returns after staging a smart recovery of 84% from the March lows. In terms of YTD, Nifty Pharma topped the rank among other sectors, growing 60%, followed by an almost 55% rise in the Nifty IT index. Nifty metal grew by 16%, while Nifty FMCG was up 15% since the start of the year 2020.
Sensex closed shy of 47,800 while the Nifty50 ended a tad below the 14,000 marks, in a session today.
Follow the top trading list for the next year from brokerages:
Listing the IT major as one of the top stock picks for 2021, the brokerage said," Infosys announced large deal wins with a total contract value of $ 3.15b, which is the highest ever recorded in Q2FY21 (includes mega-deal with Vanguard); 16 large deal wins were reported in Q2FY21. The IT deal pipeline has been continuously improving despite cost-cutting and cash conservation measures by clients. "
2. Bandhan Bank
"In the next five years, it aims to transform itself into a one-stop solution for all banking requirements of mid and low- income group customers," HDFC Securities added in its report.
Angel Broking also has given a buy rating to the stock, with a TP at Rs 525 and said," Strong deposit base & low cost of funds coupled with diversification away from West Bengal and MFI along with stable NIM's and RoE will lead to a retaining for the bank."
3. Bharti Airtel
ICICI Direct has given a 'Buy' call for Bharti Airtel and has chosen the counter in its quant picks for 2021.
Ajit Mishra, VP of Research, Religare Broking said,"It has become increasingly clear that Arpus need to increase from here on for the telcos to continue investing in new technologies. Therefore, a rise in Arpu will help profitability for Bharti Airtel. Further, the valuations appear attractive at these levels."
Axis Securities in its report suggests TP at Rs 676 and said Bharti Airtel Ltd. (Airtel) is India's largest telecom player having a strong presence not only in India but also in Africa. It also has a strong presence and highest penetration in India in DTH services, broadband services etc."
4. Sun Pharmaceutical Industries
HDFC Securities in its report said,"Sun Pharma is the largest Indian pharma company that commands ~8.2% market share in the Indian market. The company has 31 brands amongst the top- 300 brands in IPM. It is ranked No.1 in CNS, Cardiac, Orthopaedic, Dermatology, Nephrology and Urology in the domestic market. Sun Pharma has made Rs 12,600 cr worth of cumulative R&D investments over the past six years (FY15-20), which bodes well. It has earned $ 410mn in revenue from the global specialty business in FY20."
"This counter appears to have registered a clean break out with a close above its multi-week consolidation zone on the weekly line chart. A strong bullish candle with decent volume is showing more upside moves in the coming sessions," said Ashis Biswas.
5. HDFC Life Insurance Company
Anand Rathi suggested a buy rating at TP of Rs 680 and said," The stock has provided a breakout from a falling channel on the daily chart and the conservative target for the same is coming around Rs 680 levels. The momentum indicator RSI has also reversed from its oversold territory which hints at further positive momentum in the counter. It is also trading well above its short-term and long-term moving averages. Based on the above rationale, we can expect fresh momentum in the counter."
6. Gujarat Gas
Angel Broking suggested a target price of Rs 450 for the stock and said," The company is witnessing strong demand growth from the Industrial sector due to fall in gas prices and also due to environmental concerns of using pet coke as a feedstock in the manufacturing sector."
Angel Broking sees 7% upside in the stock and suggests a buy rating at a target price of Rs 518, The brokerage said," Biocon did not stay behind as we witnessed a good price-volume breakout last Wednesday from the multiple resistance zone around Rs 480. Looking at the upward sloping RSI-Smoothened oscillator, we expect the stock to do extremely well after entering uncharted territory."
8. Amber Enterprises India
Axis Securities in its report suggested a buy rating at TP of Rs 2,800, with an 18% upside for the stock, and said, "The company caters to 9 out of top 10 AC brands in India which together have 75% plus market share in India. Amber also manufactures AC/NON AC components in its endeavor to be a total solutions provider for the RAC industry in India. Amber being a one-stop solutions provider is likely to benefit as more companies set up domestic manufacturing/ sourcing locally, as it is equipped to meet the components supplies as well as fully built units."