PL Diwali Picks
Happy Diwali - Amnish Aggarwal - Head of Research, Prabhudas Lilladher Pvt Ltd.
Samvat 2079 has seen NIFTY making new lifetime highs in an increasing uncertain and volatile global environment. Bharat (India) is the fastest growing economy globally and is riding on the multiple levers of demographic dividend, huge domestic market, Make in India, Unicorns and Infrastructure development. Global geopolitical situation remains grim and Israel war has added to already crippled global order due to Russia Ukraine war. Strong resilience of US economy despite high inflation is likely to keep policy rates high which can impact the FPI inflows in near term. We expect next few months to remain volatile given impact of EL Nino on inflation, global volatility in commodities and interest rates. Domestic demand is showing a clear divergence with strong demand from upper sections of population while the lower/ lower middle section seems under pressure. Consumer wallet spends are changing as discretionary categories are growing faster than staples and small ticket items. Bharat is the largest democracy globally and is shortly going to elect government. Lok Sabha elections are going to be the most important event for next 12 months given the growth momentum Bharat has caught up in the past decade. We believe return of a strong majority govt will re-rate the markets meaningfully from current levels.
Large Cap Picks
Hindalco Industries, ICICI Bank, Maruti Suzuki, Max Healthcare Institute, Siemens and Titan Company
Mid & Small Cap Picks
Greenpanel Industries, Navin Fluorine International, Navneet Education, R R Kabel, Safari Industries (India), Sunteck Realty and Zee Entertainment Enterprises
Model Portfolio Performance
| Model Portfolio Return | Nifty Returns | Outperformance | |
| Since Nov'18 | 84.53% | 76.43% | 8.10% |
| Since Last Report – 10-Oct-23 | -4.01% | -3.56% | -0.45% |
| Since Apr’23 | 8.50% | 7.24% | 1.24% |