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With keeping the Nifty target at 19,079 as stock markets are factoring in strong recovery, brokerage firm Prabhudas Lilladher expects further upgrade in its estimates if there is weak/no third covid wave in India. Although some of these factors will play out in long term, India looks set for new growth horizons in coming years, the brokerage said in a note. 

Prabhudas is increasing weights for M&M, Avenue Supermart, Sun Pharma, JSPL, BAF while it cut weights on Ambuja and Ultratech cement, Tata Steel, HDFC and SBI cards. It is adding Affle, Titan Company and BAF in top picks while removing Rallis India. “We are adding Titan, BAF and Affle in top picks and remove Rallis post recent run up, although we remain structurally positive on the company."

Meanwhile, the brokerage is overweight on sectors like banks, insurance, IT, autos whereas it has an underweight stance on oil and gas. Though, it remain positive on Reliance Industries (RIL) led by focus on green energy and acquisition of platform companies. It has retained IGL as a preferred play on Gas segment post underperformance of last year.

Under autos, Prabhdas remains cautious on MSIL (Maruti Suzuki) due to its weak model pipeline and ability to pass on prices. Its top picks are Ashok Leyland and M&M.

Its top banking stock picks includes ICICI Bank, HDFC Bank as front line picks and Federal Bank amongst mid cap banks.

The brokerage expects HCL Tech, Infosys to outperform in Tier-1 pack and hence remain as its preferred picks. It also likes Mindtree, Mpahsis, Coforge in Tier-II & LTTS, Cyient in ER&D space.

"Although post Covid focus on healthcare will sustain, major re-rating seems behind. We retain overweight on Healthcare while we increase weightage on sun pharma," Prabhudas Lilladher stated.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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