Diwali 2021: Dhamkedar picks from Raamdeo Agrawal this Samvat

Equity markets had a record-breaking rally in Samvat 2077 with Sensex and Nifty crossing the 60,000 and 18,000 levels. Nifty gained close to 43 percent in Samvat 2077 so far, while midcaps and smallcaps outperformed as they are up 70 percent and 82 percent, respectively.

All sectors delivered positive returns, with top gainers being Metals (+128 percent YoY), Realty (+113 percent) and PSU Banks (+93 percent). On the other hand, Pharma (+23 percent), FMCG (+29 percent) and Private Banks (+30 percent) were underperformers as defensives took a breather.

Raamdeo Agrawal, Chairman and Co-Founder of Motilal Oswal Financial Services, has some stock picks to share for Samvat 2078:

1. SBI and Tata Motors: Raamdeo believes with an improving economy, certain pockets of the large caps are well poised to show a sharp improvement in earnings.

2. United Spirits, Indian Hotels, VIP: With India crossing 100 crore vaccination and opening up of various sectors, Raamdeo expects the leisure segment to do very well over the next 6-12 months.

3. Ultratech, Macrotech: Raamdeo believes real estate is on the cusp of an upcycle with several macro factors supporting like low interest rates, benign prices, and rising affordability coupled with low home ownership in India.

4. Infosys, SBI Life, Jubilant Food: The pandemic has provided long term growth drivers for certain sectors like increased spending on technology and change in consumer behaviour for QSR which is providing them with long term growth visibility.

5. Raamdeo said the stock selection was the key in generating returns within the midcap space, a trend which he believes could continue going ahead as well. Tata Power, Varun Beverages, Trident, APL Apollo and Orient Electric are among his midcap picks.

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