Sharekhan Top 12 Stock Recos For 2019

Dear Investors,

Samvat 2074 has not been very kind for investors.

Though the Sensex and Nifty have held out against macroeconomic headwinds, the damage has been quite severe in broader markets. Unfortunately, caution was thrown to the winds as most investors increased exposure to low‐quality momentum stocks during the massive rally in 2017.

Quality matters! Sharekhan’s Diwali Picks for Samvat 2074 has done better than the benchmark indices, clocking returns of 4% as compared to 3% return in Nifty and handsomely outperformed the CNX midcaps index, which was down by 11% during the same period. More importantly, none of our picks have seen a drawdown of more than 15%, even after the steep sell‐off in the past couple of months.

Markets are all about learning from past mistakes. If greed had clouded reasoning last year, fear is the overpowering emotion right now. Post a sharp correction, stock market valuations have turned reasonable and earnings are set to grow at healthy rate over the next couple of years.

Stick to basics. Invest in quality companies with a healthy growth outlook and reasonable valuations. Moreover, building a portfolio is all about understanding the macroeconomic conditions. Accordingly, these are reflected in our sector‐wise allocations.

For Samvat 2075, we have hand‐picked 12 quality stocks portfolio, which are mix of both large caps and midcaps quality names.