As the general election outcome approaches, investors are negotiating tumultuous market circumstances. The Indian market fell in May, owing to reasons such as rising US bond yields, foreign investor withdrawals, and global uncertainty. Despite this, brokerage firm Motilal Oswal remains optimistic, providing insights into ten large-cap stocks that may withstand the storm and emerge as great investment prospects.
Market Overview
The Indian market fell in May following three months of continuous rises. This decline was attributed to a number of causes, including the impact of rising US bond yields, ongoing foreign investor outflows, and global worries surrounding the Lok Sabha elections. Despite the current market troubles, Motilal Oswal remains optimistic, seeing each market drop as an opportunity for long-term investors. In keeping with this viewpoint, they have picked ten large-cap stocks that they believe have potential in the current market.
L&T And SBI
MOSL sees green shoots in L&T’s performance and anticipates an increase in ordering momentum post-election. With a focus on gaining market share through large-scale projects, L&T expects strong revenue growth from its key engineering and construction (E&C) businesses.SBI has shown a tremendous turnaround in earnings, going from losses in FY18 to significant profits in FY24. The bank’s strong business development, combined with high asset quality and consistent revenues, positions it well for consistent earnings growth in the near term.
ICIC Bank and Coal India
ICICI Bank reported a solid 4QFY24 performance, owing to healthy credit and deposit growth. The bank’s diverse portfolio and concentration on core divisions are likely to drive strong profits growth, with attractive returns on assets and equity. With a favorable forecast for volume, premium e-auctions, and cost savings, Coal India emerges as a top selection in the metals and mining industry. The company’s strategy focus on supplying the power sector’s coal demand drives its growth.
Titan And Hindaloc
Titan’s consistent revenue growth and strong market positioning in the consumer segment make it a compelling investment choice. With optimistic revenue guidance and improving margins, Titan is poised for sustained growth in the jewelry market.: M&M’s strategic focus on SUVs and anticipated growth in the auto sector signal promising prospects for revenue and profitability. Despite short-term challenges in the tractor segment, M&M remains optimistic about its long-term growth trajectory. Hindalco’s ambitious growth capex and strategic initiatives position it as a key player in the metals industry. The company’s focus on operational efficiency and value unlocking through subsidiary IPOs underscores its commitment to sustainable growth.
ITC, HCL And Zomato
ITC’s strong core business and dividend yield make it an appealing defensive choice in uncertain market conditions. Despite competitive headwinds, ITC’s diverse revenue streams and growth activities contribute to a solid earnings projection.HCL Tech’s exposure to high-demand categories like as cloud services strengthens its resilience in the current market environment. With a focus on margin improvement and strategic investments, HCL Tech is well-positioned for long-term success in the digital domain. Despite competing hurdles, Zomato’s long-term growth potential remains unaffected. The company’s focus on growing its distribution network and increasing profits demonstrates its dedication to profitability and market leadership.
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