THE MOMENTUM OF MARCH – Bulls Charge Ahead
The Bulls of Dalal Street are on a rampage and nobody can stop them.
Even novices, who were till last month bemoaning their fate, have got their swagger back and are strutting around like Millionaires.
In fact, now the Indian Indices are outperforming their foreign counterparts.
The MSCI India Index is up a mammoth 9.4% in March 2019 while the Dow Jones and MSCI Emerging Markets Index are down in the dumps.
The Bank Nifty, which comprises of Blue-Chip Private and PSU Banks, is the star of the show.
It has surged a massive 3600 points equal to 13.6% on expectation that the interest rates will be slashed in a dramatic manner.
— Surabhi Upadhyay (@SurabhiUpadhyay) March 29, 2019
BULLS were teased & they CHARGED!!
IN MARCH 2019 SERIES
*Nifty +778 pts: As Good a series as Jan-15 series
*Best Ever ‘March’ series!!!
IN THE MARCH 2019 SERIES
‘NIFTY BANK’ was the real star
*Nifty Bank +3630pts (+13.6%)
*Best series ever in absolute terms pic.twitter.com/pUCZjdvlsO
— Nigel D'Souza (@Nigel__DSouza) March 28, 2019
Nifty Bank is up 13.6% with global central bankers hinting at rates easing. Here are the top gainers of March. pic.twitter.com/g5JVNRsbMJ
— ET NOW (@ETNOWlive) March 29, 2019
A few novices are still waiting on the sidelines, afraid to dip their toes in the water.
Basant Maheshwari mocked them and advised that they rush in ASAP before the bargain deals get taken.
Q) Now what are they waiting for ?
A) New High on the Nifty. ? https://t.co/PNjdXYM1Gc
— Basant Maheshwari (@BMTheEquityDesk) March 28, 2019
Most of the NBFCs/ PSU banks/ Infra surging because of low participation & now gush of money coming in. Imagine what will happen to good quality mid & small cap companies when liquidity comes in.
— Varinder Bansal (@varinder_bansal) March 29, 2019
Nifty will surge to 14,000, Mid-caps will quadruple
Sanjiv Bhasin, the veteran stock picker, has been inspiring us to buy stocks since time immemorial.
In his latest interview, he opined that the maximum money is to be made in the place which has the maximum despondency, namely, mid-cap stocks and PSU Bank stocks.
“I am sure by middle of April, you should be closer to 12,000 and 13,500-14,000 by the end of the year,” he said.
He also confidently asserted that midcaps are going to double, triple or even quadruple in the next two years.
“Stay with players where you have confidence and visibility. It will be construction, real estate and consumption. Select auto and metals, where you have been contrarian will pay out because consumption is going to come back strongly,” he advised.
Top 5 stocks to buy now
Sanjiv Bhasin also handed over 5 potential multibagger stocks to us on a platter.
IDFC First Bank – the “Next HDFC Bank”
IDFC First Bank needs no introduction to us because Sanjiv Bhasin has already declared it to be the “Next HDFC Bank“.
The reason for the confidence stems from the fact that V. Vaidyanathan, the dynamic promoter of Capital First, is now in charge of affairs.
He has described it as a “huge wealth creating opportunity for investors“.
It is notable that Morgan Stanley and Deutsche Bank are both pessimistic about the prospects of IDFC First Bank.
IDFC FIRST BANK
Underweight, Target cut to Rs 30 from Rs 35
Valuation is expensive and leaves no margin for error; risk reward is poor
— Ashish Verma (@AshVerma111) March 7, 2019
DB On IDFC First Bank
Sell, Target Raised to Rs 44 from Rs 35
Find the risk reward extremely unfavorable for the stock
Focus will be to build CASA – but this will be a long and costly journey@CNBC_Awaaz #AwaazMarkets
— Varun Dubey (@VarundubeyCNBC) March 28, 2019
However, it appears there are not many takers for this view in Dalal Street.
On 7th March, Morgan Stanley had downgraded the target of IDFC FIRST BANK from 35 to 30, the stock closed at 49 on the same day. On 23rd it was trading at 53, almost 8% up from the downgraded day. I think in the dictionary of MS, downgrade means Upward direction and vise versa?
— Rahul (@Path_of_Nirvana) March 25, 2019
It's like Sour Grapes. Save the tweet…Morgan will overweight IDFC First Bank at 150 rs next year 🙂 https://t.co/pNlgEfobnj
— Pulika Nath (@nalandacapital) March 7, 2019
L&T Finance – blue-chip pedigree
L&T Finance also needs no introduction to us.
The stock was personally recommended to us by none other than AN Naik, the legendary honcho of L&T, the blue-chip behemoth.
Needless to say, the targets have been achieved.
They say the chairman is the best analyst of a stock and thats true for L&T FINANCE HOLDINGS LTD. atleast…TP came early 😉
— Nigel D'Souza (@Nigel__DSouza) October 14, 2016
L&T Finance Holdings hits 150….Mr AM NAIK predicted in Sep 2016 it could reach 150 by December 2017….sure he will be very happy man 🙂
— Varinder Bansal (@varinder_bansal) July 6, 2017
The stock is presently in the doldrums owing to its LPAs (Loans against property) to a developer named Supertech.
However, Dinanath Dubhashi, the CEO, assured that there is no cause for concern because L&T Finance has thousands of crores in liquid investments and sanctioned credit line of Rs 6,146 crore from its parent L&T, and banks.
Godrej Properties – beneficiary of GST reforms
Godrej Properties was recommended to us by Porinju Veliyath in September 2018 when it was languishing at Rs. 560.
Oberoi Realty @ 410 & Godrej Properties @ 560, two well-corrected high-quality stocks in the sector with solid assets, brand & business model.
Discl: no vested interests, not holding
— Porinju Veliyath (@porinju) September 24, 2018
The timing was brilliant because NAMO soon announced solid concessions for the realty sector which has sent all realty stocks surging into orbit like rockets.
Godrej Properties is up 44% (CMP Rs. 814) while Oberoi Realty is up 30% (CMP Rs. 527) since Porinju’s recommendation.
Bonanza coming for home buyers? PM @NarendraModi & FM @ArunJaitley in favour of cutting the 12% GST on housing to either 8% or a flat 5% with no input tax credit for builders. Read this #Exclusive by @NayantaraRaihttps://t.co/G96853EchC
— ET NOW (@ETNOWlive) December 19, 2018
According to CLSA, the time is opportune to buy realty stocks because the entire sector is undergoing a transformation.
BSE Realty Index gained most , 3% up
CLSA says India’s property sector is undergoing a transformation
Weaker players exit, quality players will benefit, doubling their market share to 20% by FY24.
Godrej Prop, Sobha, Prestige, Oberoi, IB Real, DLf benefits
— Deepali Rana (@deepaliranaa) March 12, 2019
— Business Standard (@bsindia) March 24, 2019
NBCC & Nagarjuna Construction – beneficiaries of Infra boom
NBCC & Nagarjuna Construction are not familiar to me though they also appear to be powerhouses.
We will have to study the prospects of these stocks also ASAP and tuck into them if we are convinced of their multibagger potential!