On Tuesday, the Indian stock market saw gains, with the Sensex and Nifty 50 indices close to their all-time highs. The rise was driven by banking, financial services, and IT stocks.
Market Overview
Foreign investors are optimistic about the Indian market in the medium term but are cautious after a strong rally following the elections, as per analysts at Emkay Global Financial Services.
- Favorite Sectors: Industrials, with some interest in Autos and Banks.
- Least Interest: Staples.
- Momentum: Technology stocks.
Current Market Insights
- Nifty Outlook: Limited short-term upside due to high valuations and a lack of positive triggers.
- Market Trend: A pause in a long-term bull run, with a low chance of a significant correction.
- Investment Preferences: Favoring durable goods (like Autos) and materials, with opportunities in FMCG and Tech due to relative valuations and earnings recovery.
Top Smallcap and Midcap Stock Picks by Emkay Global
1. Jubilant FoodWorks
- Rating: Add
- Target Price: ₹525
- Expected EPS Growth: 41.6% in FY25, 29% in FY26
2. Honasa Consumer
- Rating: Buy
- Target Price: ₹525
- Expected EPS Growth: 43% in FY25
- Notable Brand: Mamaearth
3. Suprajit Engineering
- Rating: Buy
- Target Price: ₹610
- Expected EPS Growth: 50.7% in FY25
4. Senco Gold
- Rating: Buy
- Target Price: ₹1,100
5. Metropolis Healthcare
- Rating: Buy
- Target Price: ₹2,200
Emkay Global Financial Services sees potential in select smallcap and midcap stocks despite the current high valuations in the market. They are particularly optimistic about sectors like Industrials, Autos, and Banks, and also see opportunities in FMCG and Technology stocks.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
