Market
outlook is uncertain, thanks to the coming general elections. How the markets
will behave in the run-up, experts are starkly divided; with some betting on a
surge and others predicting otherwise.
Here are three stocks that brokers say
can return more than 60% in the next nine to 12 months:
DLF
Religare
maintains 'buy' rating on the stock after the company achieved the debt target,
which is a key positive.
The
risk-reward ratio also remains favourable given the improved balance sheet and
rental assets.
Adani Enterprises
The
stock after giving a breakout in December completed a pullback in January and
February and is on the verge of resuming its uptrend. Mitesh Thacker advises
investors to accumulate the stock with a stop loss of Rs 220 and look for a
target of Rs 400-420.
Delta Corporation
This
stock has also has given a pullback to its breakout levels of around Rs 95 with
last week's low at about Rs 97. Investors can look at accumulating the stock
around Rs 100-102 mark.
The
stock remains in a long term uptrend and Mitesh Thacker is of the view that the
stock can test levels of Rs 170 to 180 in the next six to nine months. I would
suggest accumulating with a stop below Rs 78.
Here's
what experts say about how markets tune to the elections:
Rakesh
Tarway, VP and Head of Equity Strategy, Equity and Derivative Products, Motilal
Oswal Securities
"A
hung Parliament would be a bad option for India as a country and market will
not like Third Front as it brings political instability."
"Third
front will not be a better option for political scenario. But too many
aspirants for PM, will limit its success post poll."
Rajesh
Sharma, Founder & Director, Capri Global Capital Ltd.
"Any
further prolonging of this situation (on economic front) will certainly widen
the gap between developed economies and Indian economy which is aspiring to
become one of the largest economies of the world."
"Towards
achieving this goal our IIP should grow in double digit and GDP growth should
be at least around 8.5 per cent. This will not be possible with political
situation of hung Parliament."
Siddharth
Sedani, Vice President-PMS at Microsec Capital Ltd
"Although,
we see few green shoots in the economy in last couple of months. Investor
should utilize the opportunity to accumulate quality companies on dips ahead of
elections due to volatility."
"Automobile,
Export oriented companies and Infrastructure can be growth drivers in quarters
to come."
Dolat
Capital
"The
elections will at least bring back some level of confidence back for key
stakeholders, and then it is up to the actions of the new government; how much
and how quickly we recover to the trend line growth."
Vikas
Khemani, CEO, Edelweiss
"Most
of the activity seems to be building around the belief in the political
outcome. Some of the surveys have come out and incrementally there is a belief
of a strong political sort of outcome that is getting built into the market
albeit in a slow and steady manner."
Ambareesh
Baliga, Managing Partner-Global Wealth Management, Edelweiss Financial Services
"We
have been bullish on the market for a while, and talking about the pre-election
rally."
"The
pre-election rally that we all are waiting for should take us to new highs. I
will not be surprised if we see levels of closer to about 6,500-plus in the
next one and a half, or two months."
