Motilal Oswal's top stocks for Diwali 2020 with up to 35% upside
The brokerage house believes, further strong global markets can keep the liquidity abundant in the system, thus providing support to the overall market.
As we enter Samvat 2077, the markets have seen a complete recovery from the Covid lows, in-line with the improving data points and positive corporate commentary. More importantly, covid-19 cases have seen a meaningful decline. Improved corporate earnings have also buoyed the market sentiments. "We expect Nifty EPS growth of 4% in FY21 while expecting a sharp rebound in FY22. Thus, the overall structure of the market remains positive. At 18x FY22 earnings, Nifty valuations is also not very expensive as it is trading closer to its long-period averages. With the economic activity recovering fast, more earnings upgrade cannot be ruled out," says Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!Let’s get started