Nifty earnings yield may not fall below 5% even as RBI goes on quantitative tightening; check stock picks
时间:2024-06-26 12:34:55 阅读(143)
Earnings yield of domestic stock markets is now less likely to fall below the 5% mark even as central banks continue their quantitative tightening process, said analysts at ICICI Securities. “… despite the ‘easing of nerves’ on interest rates, we believe we are still in a QT cycle, hence it is less likely that equity valuations will yield less than 5% or trade above 20x on a 1-year forward basis,” ICICI Securities said in a note. Analysts at the domestic brokerage firm believe that profit, credit and Capex cycles will continue to expand, helping valuations ahead.
Valuations in control
Also Read: Paytm share price rallies 15% in 5 days; coverage initiated by Axis Capital with ‘Buy’ rating, check target
Profit, credit and Capex in an uptrend
The domestic brokerage firm has further said that India’s profit to GDP ratio will remain in an uptrend, accompanied by an expanding credit cycle with under-control bad loans, and growing capital expenditure from the public as well as the private sector. The three key cycles — profit, credit, and Capex — are believed to be key for stock markets and analysts at ICICI Securities see them comfortably placed, boding well for equity markets. The combined Capex of government and listed corporates has risen from Rs 10-12 lakh crore range to more than Rs 21 lakh crore range in FY23. Meanwhile, profit to GDP may breach 4.5% in the current fiscal year.
Also Read: RBI Monetary Policy retains growth forecast at 7.2% for FY23 on urban demand, normal monsoon
What sectors and stocks to bet on?
“We continue to prefer the themes related to improving credit growth, investment rate and discretionary consumption,” ICICI Securities said. The brokerage firm has listed the following as its top stock picks; SBI, IndusInd Bank, SBI Life, L&T, NTPC, GAIL, UltraTech Cement, Tata Communications, Gujarat Fluorochemicals, Tata Motors, TVS Motors, Brigade, Phoenix Mills, Sapphire Foods, Titan, Greenpanel industries, and Centuryply.
上一篇:US stocks- S&P 500 snaps four-session losing streak with payrolls on deck
下一篇:ZEEL shares surge over 8% after NSE withdraws decision to exclude Zee Entertainment from F&O segment
猜你喜欢
- Nifty to head towards 18900, Bank Nifty may hit 44600; Reliance Industries, HDFC Bank, L&T among top bets
- Cold, Flu, or COVID-19- Here’s how to differentiate between similar symptoms
- US Stocks- Wall Street set to decline as rally in growth stocks falter
- Nifty may fall in near-term if 17946 support breached; Buy these 2 stocks to pocket gains, charts show upmove
- Nifty set to touch 16,100, Bank Nifty may hit 36,200 in June 2021; TCS, SBI strong on charts
- Uniparts India IPO share allotment- Check status online, grey market premium; listing on 12 Dec
- US stockmarket wrap-up- S&P 500 ends lower as Tesla falls, while energy rallies
- US inflation spooks global markets- Stocks plunge, Nifty closes below 16,000-level
- US Stocks- Futures tick lower ahead of monthly jobs report