The Nifty Midcap and Smallcap indices rallied nearly 7 percent and 10 percent in March, and since February 19, both indices surged 11 percent and 15 percent respectively.
The spectacular rally for almost a month, after consolidation for over three months, was quite fascinating for investors as well as traders. The two most important things that mesmerized everyone were solid catch up in midcaps & smallcaps, and gush of liquidity from foreign institutional investors (FIIs).
Experts attributed this rally in hope of a stable government at Centre, likely rate cut on benign crude oil prices and retail inflation, and easing US-China trade and Brexit tensions.
The Nifty50 climbed nearly 8 percent since February 19 and over 5 percent in March, while the broader markets strongly outperformed frontliners.
The Nifty Midcap and Smallcap indices rallied nearly 7 percent and 10 percent in March, and since February 19, both indices surged 11 percent and 15 percent, respectively.
"During past fortnight, Indian markets have enjoyed one of the best stretches in the recent memory. FII inflows have crossed Rs 30,000 crore in February-March '19 till date resulting in a flood of inflows after 2018 drought," Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth) at Centrum Broking told Moneycontrol.
He said most heartening aspect of the current rally is that it is quite broad-based across the sectors, but investors should be careful in stocks election as it's very easy to get carried away when the momentum is so strong.
The major reason for this rally in broader space was attractive valuations and likely strong earnings growth in FY20. Hence, a lot of stocks saw upgrade rating from brokerages in March.
Here are seven top stocks which saw upgrade from brokerages in March:
Brokerage: CLSA
DLF: Upgraded to Buy | Raised Price Target to Rs 229 | Return: 16%
After adding debt at a Rs 800-1,000 crore per quarter pace for 4+ years, DLF's consecutive quarters of flat debt trend on breakeven cashflows marks a long lasting turn, in our view.
The rental business, with private equity support, is set to deliver double-digit compounding over the long term, crossing $0.5 billion lease income by FY21.
The development business would stay high value focussed as low debt helps it adopt a low-risk, land-bank mining path. DLF has done well to deliver on project commitments making it among the very few survivors in the large NCR market. We upgrade DLF from sell to buy with a revised target price of Rs 229 from Rs 167.
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