Top picks for Diwali 2020: 11 stocks for Samvat 2077, with up to 50% upside1 min read . Updated: 13 Nov 2020, 01:21 PM IST
'Samvat 2077 to see vaccine theme playing out,' says Axis Securities
Samvat 2077 now looks much brighter and this Diwali has brought festive cheers to many, but still there is a long way to go. Analysts believe that growth is likely to come back strongly looking at the high frequency indicators. The Indian banking system has coped well with the pandemic challenges and it is now flushed with liquidity. Interest rates are low and lending is much likely to pick up strongly in the forthcoming quarters, say analysts. Analysts at Axis Securities believe, housing and banking will be growth themes for Samvat 2077." New home registrations are seeing a solid pick up across the metros and housing loans are surging across the banking system," says Axis Securities.
Samvat 2077 to see vaccine theme playing out
Currently, there are ten good covid vaccine candidates in phase 3 trials and a vaccination can be expected by early 2021 if not earlier. So, Samvat 2077 will also see the vaccination theme playing out across the sectors. "Successful vaccination drive will mean complete opening up of the economy and the most affected sectors like travel and tourism will get a boost. More offices, malls and recreation centres will open up and stocks associated with these themes will pick up steam," says the brokerage.
Axis Securities' themes for Samvat 2077
> The brokerage believes the small and midcaps are picking up steam and they should deliver solid returns in 2021 as economic uncertainties will reduce and volatility will decline.
> Housing and banking will be major themes to watch out for in 2021 because of correction in real estate prices and lower interest rate regime.
> Digital and telecommunications will continue to remain major long term structural themes.
> Vaccination drive and complete opening up of the economy will be key factors for growth.
> Growth is now a more certain theme, but growth at a reasonable price will be an even bigger theme to invest which will deliver solid returns over the next one year.
Top stock picks for Diwali 2020
Based on these themes, our Diwali picks are: ICICI Bank, Canfin Homes, SBI, Bharti Airtel, Tech Mahindra, SIS, Eicher Motors, Dalmia Bharat, Varun Beverages, Dhanuka Agritech and Aarti Industries.