Stock Picks : Rahul Arora of Nirmalbang Institutional Equities joined CNBC-Awaaz today to talk about the market and his favorite stocks. He says that the effect of abundance of liquidity is being seen in the market. Fundamentally the market is quite expensive. In the last 2 months, promoters have also sold Rs 80-90 thousand crores in the market. The market has also welcomed the shares of the promoters. Whereas, earlier promoter selling was not considered good.
Strong investment will be seen coming from FII
Rahul Arora further said that the Indian economy is in a very good condition. The rupee is strong. There has been a decline in crude oil. All these are good signs for India. Along with this, we are going to enter the rate cut cycle. In such a situation, we will see strong investment from FIIs in the country in the future.
With the help of Bajaj Finance, the entire NBFC sector is in high spirits
Talking about Bajaj Housing Finance, Rahul said that the valuation of this IPO is good. The stock can easily see a growth of 30-35 percent in the future. Bajaj Housing Finance is listed on Monday. Its listing can happen at a premium of more than 100 percent. On listing, this stock will trade at 7 times P/BV.
Rahul believes that the entire BFSI sector is looking good now. Rahul is expecting a growth of 20% in Repco Home Finance. Apart from this, he is also seeing a growth of 30% in HUDCO. Muthoot Finance also looks promising to Rahul. He believes that the entire NBFC sector is currently in high spirits with the help of Bajaj Finance.
Bajaj Housing may remain sideways for some time after listing
Rahul is of the opinion that Bajaj Housing may remain sideways for some time after listing but on the basis of the good environment created by Bajaj, other good MBFC stocks may see a good rise. In such a situation, everyone should take a bath in the flowing Ganga.
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From here gold can give a return of around 15%
Rahul says that 15-20% of the portfolio can be kept in gold. From here, gold can give a return of around 15%. Rahul believes that the quick restaurant sector also looks good. 5-10% monthly growth is being seen in these. Shares of Westlife Food, Burger King and Jubilant Food look good. But investing in Jubilant Food would not be advisable right now. At the same time, investment can be made in the shares of Devyani and Sapphire.
These are Rahul’s favorite stocks
Talking about his favourite stock, Rahul said that HUDCO is his favourite stock. It can rise by 25-30% from here. Rahul has two favourite stocks from the auto ancillary sector. One of these is SANSERA ENGG and the other is SUPRAJIT. In auto OEM, Rahul likes Maruti and Eicher. In IT, his favourite stock is LTI Mindtree.
Downgrading of defense sector
Rahul further said that his firm has recently downgraded the entire defense sector. Balakrishna Industries has also been downgraded.
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