List Of Best 11 Stocks To Buy For 2019

Samvat 2074 was a roller coaster year on all fronts. Relentless increase in Brent crude oil prices from $55.92/barrel to $75.91/barrel as on 30th October 2018 aftr hitting a high of ~USD86/barrel in early October 2018, sharp depreciation of INR against USD from 65.04 to 73.67 and increase in current account deficit impacted India’s economic indicators.

Imposition of LTCG Tax, electoral setback to the ruling Government in Karnataka, oppositions’ clamor on Rafale deal and default by IL&FS to meet its obligations and liquidity squeeze all have led to loss of sentiment in the market.

On the positive front, formalization of the economy, increase in the tax base, smooth transition of GST in the second half were some of the structural changes that gives confience for a long term sustainability.

On the global front, US president lived up to his poll promises and waged trade war against China and some other countries which the world had never witnessed before.

Sharp increase in US fed rates on robust US economic growth led to flght of capital from Emerging Markets. However, US-North Korea talks, a fist of its kind signaled peace in the region.

Around the eve of Samvat 2075, (31/10/2018), Nifty losed 10198.40, 20.80 times to TTM EPS of 490.60. According to Bloomberg consensus estimates, forward 12 months EPS of Nifty is 628, which makes it trade 16.30 times.

On the same estimates, we expect Niftyto trade 15.50-18.50 times Forward 12 months EPS estimates, which makes a range of 9734-11618.

However, being an election year, we believe a sharp upside cannot be ruled out in case the ruling Government once again manages to retain thumping mandate.

Nevertheless, expect severe bouts of volatility during for the year ahead. The current political developments in the country indicates that it may not be a cake walk for the ruling government in General election 2019.