With key events such as developments in the European Union (Brexit), policy initiatives by Donald Trump after he assumes office as the US President, monetary policy framework of global central banks, outcome of Assembly elections back home and the demonetisation impact on corporate earnings, progress on implementation of the goods and services tax (GST) bill, calendar year 2017 promises to be an eventful year for equity investors.
Going forward into 2017, analysts expect the Indian economy to recover from the demonetisation shock from Q2CY17 onwards, as the liquidity crunch wanes away and the pent up demand comes back to the fore. In this backdrop, they expect Indian equities to perform well.
“India’s economy is in transition: towards greater formalisation, lesser corruption, better infrastructure and improved governance. Some of these transitional reforms – the recent demonetisation and implementation of the goods and services tax (GST) – along with a reversal of the terms-of-trade gains will hurt growth in the near term but are laying the ground for a faster growth rebound in 2018,” said Sonal Varma, executive director and India Economist at Nomura in a recent report.
“We expect growth to be largely unchanged at 7.1% in 2017, but to rise sharply to 7.7% in 2018,” she adds.
With myriad investing options available with investors, here is a quick compilation of top stock recommendations for calendar year 2017 from brokerages.
Aurobindo Pharma, Bank of Baroda (BoB), BPCL, Godrej Consumer, Hindalco, HPCL, Nestle, NTPC, Petronet LNG, Reliance Industries (RIL), State Bank of India (SBI), Sun Pharma, Tech Mahindra
MOTILAL OSWAL RESEARCH
Tata Motors: Target Price – Rs 610
ICICI Bank: Target Price – Rs 337
Canfin Homes: Target Price – Rs 2,260
Sterling Tools: Target Price – 1,207
APL Apollo Tubes: Target Price – Rs 1,248
Fiem Industries: Target Price – Rs 1,315
Castrol India: Target Price – Rs 483
Wonderla Holidays: Target Price – Rs 430
Jain Irrigation Systems: Target Price – Rs 104
Asian Granito: Target Price – Rs 351
Infosys: Target Price – Rs 1,249
Jagran Prakashan: Target Price – Rs 225
Power Grid Corporation: Target Price – Rs 223
Alkem Laboratories: Target Price – Rs 1,989