In the past one year, benchmark index Sensex plunged over 5 per cent to 26265.24 on November 6, 2015. (Photo: Reuters)

Samvat 2071 turned out be bearish year for the stock market as China Yuan devaluation, weak rupee, Bihar poll outcome, corporate earnings and possibility of a December rate hike by the US Federal Reserve continued to dictate its movement. In the past one year, benchmark index Sensex plunged over 5 per cent to 26265.24 on November 6, 2015.

Markets experts believe that investors would be bullish in the Samvat 2072, which will begin from November 11. Pankaj Pandey, head of research, ICICIdirect, said, “Volatility is expected to prevail on the global front as central banks across the globe recalibrate liquidity levels, India, with its higher growth rate and least political instability will continue to remain in a sweet spot among other emerging markets and continue to attract global investors. We expect Sensex earnings to grow 13.2 per cent and 18.5 per cent in 2015-16E and 2016-17E to Rs 1,539 and Rs 1,838, respectively. We believe Nifty and Sensex can touch 9,100 and 30,300, respectively, by October 2016.”

For Samvat 2072, with the help of some brokerage houses we have identified 10 stocks which can generate superior returns over the next one year.

1) Bajaj Finance
Recommended By: Sharekhan
Why Buy: The brokerage house believes Bajaj Finance is the best play on India’s consumption theme and mortgage market. Sharekhan is positive on Bajaj Finance’s business model and strong earnings performance and expect it to trade at a premium to the other NBFCs.

2) Britannia Industries
Recommended By: Sharekhan
Why Buy: Britannia is the second largest player in the Indian biscuit market with about a 30 per cent market share. It has an aggressive growth strategy to sustain a double-digit volume growth in the biscuit segment by enhancing its product portfolio. According to Sharkhan, with its healthy balance sheet and impressive return ratios, it is a strong investment bet.

3) Sangam India
Recommended By: Sharekhan
Why Buy: Sangam (India) is a dominant player in the domestic dyed poly viscose (PV) yarn market (around 25 per cent share), it has further moved up the value chain in garmenting by entering into lucrative women’s intimate & active wear segment by setting up a garmenting facility and distributing garments under its own brand name, Channel Nine. With an expected high double-digit steady growth rate in earnings over the next couple of years and increasing contribution contribution from branded branded garments garments segment segment (B 2 C business), Sharekhan sees a potential for multiple re-rating of the stock.

4) Tata Motors
Recommended By: Prabhudas Lilladher
Why Buy: The bokerage house is positive on Tata Motors and have a ‘Buy’ rating with a price target of Rs 518. Prabhudas Lilladher believes that JLR faces a short-term negative outlook due to weakness in China. However, with its strong product portfolio, JLR is in a good position to counter the slowdown there as well as increase its sale in other geographies, thereby resulting in a positive outlook from a medium‐to-long-term perspective. In the India business, with M&HCV volumes already on the move, and a recovery expected in LCVs by 4QFY16, the turnaround in India operations would get completed in FY17.

5) JK Laxmi Cement
Recommended By: Prabhudas Lilladher
Why Buy: JK Lakshmi cement is the fifth largest cement producer in North India with around 7 per cent market share in the region with a capacity of 9mtpa. This backed by one of the most efficient operations, entry into the most profitable eastern region with a capacity of 2.7mtpa, and increasing consolidation in Gujarat (around 40 per cent of its total volumes) ranks the company as one of top pick in th sector with a price target of Rs 450 at EV/T of US$100 FY17E capacity of 12m tonnes.

6) Infosys
Recommended By: Prabhudas Lilladher
Why Buy: Prabhudas Lilladher expects Infosys to return to industry revenue growth by end FY16 and grow ahead of industry in FY17. Multiple strategic initiatives (Zero Bench, Zero Distance, ) spearheaded by Dr Sikka are at various stages of implementation and signs of early success are reflected in strong 1HFY16 revenue growth, deal wins, better client mining and efficiency benefits. The brokerage house expects full benefits to flow in by FY17-18 and that should result in Infosys leading industry growth with margin improvement. Stock is trading attractive at ~17x FY17 EPS, Prabhudas Lilladher have ‘Buy’ rating with target price of Rs 1,440.

7) ITC
Recommended By ICICIdirect
Why Buy: ICICI direct have a positive stance on ITC given its focus shifting on growing FMCG business with the target to achieve Rs 1 lakh crore revenues by 2030, which translates into a 17 per cent CAGR growth. Simultaneously, a structural decline in commodity prices has increased visibility of earnings growth in segment. Furthermore, rising unrest among tobacco farmers could halt excise hike in cigarettes in the next Budget, which could be a relief in the medium term for cigarette manufacturer.

8) Syngene International
Recommended By ICICIdirect
Why Buy: Syngene is well poised to cash in on growing global pharma R&D outsourcing trend. Global Pharma players are inclined to outsource some of the R&D budget to the contract research organisations (CROs) like Syngene to maintain the cost balance and new product introduction. As an Indian player, it has a significant cost advantage and skilled personnel compared to global CRO companies. It also enjoys high recall value due to its integrated service offerings coupled with consistent performance and high data integrity ethos.

9) PNC Infratech
Recommended By ICICIdirect
Why Buy: PNC is a North based EPC player with track record of timely/early completion of projects. With strong order book of Rs 4,000 crore (including L-1 bids), healthy order inflow pipeline from anticipated revival in road awarding, and lean balance sheet, ICICIdirect expects PNC speed up its growth trajectory. The brokerage house expects PNC Infratech’s top line and bottom line to grow at a CAGR of 20.7 per cent and 25.4 per cent during FY15-FY17E v/s 16 per cent and 17.3 per cent CAGR during FY10-15.

10 Blue Dart Express
Recommended By ICICIdirect
Why Buy: BlueDart continues to be a market leader in the air express market with around 52 per cent market share. The brokerage house expects the implementation of GST to aid shifting from unorganised (50 per cent of the market) to organised segment in the ground express market. Furthermore, upcoming deals from e-commerce companies would lead to continued higher B2C volumes for the company. With the current 1,00,000 sq feet e-fulfillment centre boding well, additional 2-3 centers are planned by FY16. Revenue growth with continued margin expansion affirms our positive stance on the company.

(Disclaimer: The stocks are recommended by the respective brokerage houses and not a recommendation from Financial Express online)

Dena Bank share price plunged as much as 6.14 per cent in the morning trade on Monday (Photo: PTI)

Dena Bank share price plunged as much as 6.14 per cent in the morning trade on Monday after the bank reported 24.85 per cent fall in its net profit at Rs 38.76 crore on November 7 for the quarter ended September 30, 2015 as compared to Rs 51.58 crore for the same quarter in the previous year.

At 12.10 pm, the share price of Dena Bank was down 3.36 per cent at Rs 41.70. The scrip opened at Rs 42.45 and had touched a high and low of Rs 42.45 and Rs 40.50, respectively, in trade so far. Sensex was down 1.23 per cent at 25,942.87.

The bank’s total income decreased by 0.46 per cent to Rs 2,872.08 crore for the quarter under review from Rs 2,885.22 crore in the corresponding quarter of the previous year.

Gross non-performing assets (NPAs) of the bank have increased to 6.84 per cent for the quarter as against 5.12 per cent in the same quarter previous year. Besides, bank’s Net NPA stood at 4.65 per cent in Q2FY16.

In the past one year, the share price of Dena Bank declined 33.35 per cent to Rs 43.15 on November 6. Sensex slid 5.75 per cent during the same period.

Sun Pharmaceutical share price dipped as much as 7 per cent in the morning trade on Monday after the pharma major reported a 46 per cent fall in its consolidated net profit. (Photo: PTI)

Sun Pharmaceutical share price dipped as much as 7 per cent in the morning trade on Monday after the pharma major reported a 46 per cent fall in its consolidated net profit at Rs 1,106.66 crore for the second quarter ended September 30. The company posted net profit of Rs 2050.22 crore in the corresponding quarter last year.

At 11.30 am, Shares of Sun Pharma was trading 4.75 per cent down at Rs 765.50. The scrip opened at Rs 763.50 and had touched a high and low of Rs 772 and Rs 745.95, respectively, in trade so far. Sensex was down 1.06 per cent at 25,986.53.

Consolidated net sales of the company declined to Rs 6,803.31 crore for the quarter under review as against Rs 7,979.31 crore for the same period a year ago.

The promoters holding in the company stood at 54.71 per cent while institutions and non-institutions held 35.62 per cent and 9.67 per cent, respectively.

In the past one year, share price of Sun Pharma plunged around 10 per cent to Rs 803.70 on November 6. Sensex declined 5.7 per cent during the same period.

Nestle India stocks will be in focus as it informed the bourses that it has begun rollout of its Maggi noodles from Monday. (Reuters)

The BSE Sensex as expected in the aftermath of Bihar Assembly elections witnessed a knee-jerk reaction on Monday and opened 456 points down at 25,809. NSE Nifty opened 166.05 points down at 7,788.25.

At 9.26 am, Sensex was down 456.73 points at 25,808.51. NSE Nifty was down 142.25 points at 7,812.05 during the same time.

Below are stocks that are likely to be in focus today:

Sun Pharma:  The drug major was the biggest loser among the Sensex companies as its shares fell by 5.3 per cent intraday. At 10.30 am, Sun Pharmaceuticals shares were trading 4.54 per cent down at Rs 767.20  after its earning for quarter ending in September failed to meet the street expectations. Sun Pharma reported a 46.02% fall in its consolidated net profit to Rs 1,106.66 crore for the quarter ended September 30, 2015.

Dr Reddy’s: Dr Reddy’s Laboratories: Decline of Dr Reddy’s Laboratories shares continued for the second consecutive session after the drug maker on Friday said that it has received a warning letter issued by the US drug regulator relating to its two active pharmaceutical ingredients (API) manufacturing facilities in Andhra Pradesh and Telangana. Its shares were trading 2.25 per cent down at Rs 3548.05.

Nestle India: Share price of the company was trading 0.15 per cent up at Rs 6181 as it informed the bourses that it has begun rollout of its Maggi noodles from Monday.

State Bank of India: Shares of the public sector bank continue to rally on Monday and were trading 1.01 per cent up(at around 10.40 am) at Rs 245.70 after the bank posted an impressive earnings for Q2FY16. SBI reported a 25.13 per cent jump in its net profit year-on-year(y-o-y) while the bank’s Net Interest Income(NII) went up by 74% y-o-y.

Glenmark Pharma: Shares of the drug major were trading 1.46 per cent down at Rs 946.90 today after the company informed the bourses that it has got a final approval from United States Food and Drug Distribution for Clotrimazole and Betamethasone Dipropionate Cream US.

Hester Biosciences (HBL): The company is expanding its footprint in Nepal and Africa to tap the growing vaccine market in the regions. The company is setting up a JV unit in Nepal to manufacture Nigerian strain PPR and other animal vaccines.

Tata Steel: Amid a crisis in Britain’s steel sector, Tata Steel has warned its suppliers that if they do not slash prices by up to 30 per cent in the long term then they risk losing the steel giant’s business.

Aurobindo Pharma: Aurobindo Pharma on Friday reported 21.4 per cent rise in consolidated net profit at Rs 451.76 crore during the July-September quarter.

Sun Pharma: Drug major Sun Pharmaceutical Industries reported 46.02 per cent dip in its consolidated net profit at Rs 1,106.66 crore for the second quarter ended September 30, 2015 on account of lower sales, volatile currency movements and supply constraints.

Essar Steel: As it tries to brace itself against the major headwinds faced by the sector, Ruias-promoted Essar Steel said it is looking for buyers to raise fresh capital to fund capital expenditure and pare some of the debt.

Reliance Communications: Reliance Communications reported a 1.9 per cent rise in consolidated net profit at Rs 156 crore for the second quarter ended September 30.

Bharat Heavy Electricals (BHEL): The company has secured prestigious orders, cumulatively valued at Rs 4,614 crore, for setting up two supercritical thermal power projects involving one unit each of the country’s highest rating 800 MW sets, in Andhra Pradesh.

Godrej Properties: Godrej Properties has cut its net debt by 25 per cent to nearly Rs 2,200 crore during the quarter ended September, helped by a big-ticket deal where it sold large office space in Mumbai for Rs 1,479 crore.

Coal India: State-run Coal India (CIL) will invest Rs 6,000 crore to set up 1,000 MW of solar power generation capacity over the next five to six years. The company will fund 70 per cent of the project cost through debt, which will come mostly from banks, while the rest will be through internal resources.

Tata Motors:  Due to a sharp decline in the profitability of its luxury segment and an exceptional cost incurred on account of damage to its vehicles due to an explosion at China’s Tianjin port, Tata Motors on Friday reported consolidated net loss of Rs 411.1 crore for the July-September quarter.