Market expert Hemang Jani says "midcap cement companies such as NCL for a 25-30% upside, as the sector could re-rate due to increasing M&A transactions. Also, VIP Industries, which could be acquired by a large luggage company, potentially creating a premium of 20-22%. Jani is positive about the quarterly performance of US generic driven pharma companies, especially Sun Pharma and Dr Reddy s, for medium to long term investment with an 18-20% potential upside.
“In the current scenario, you might want to wait for a 10-15% dip in Zomato before you get into it because we are no longer in a momentum-driven market. The storyline is very good, the potential is great, but it makes sense to kind of wait for some small correction before you enter.”
“This railway stocks story will go on for another year or so. Of course, there will be some pauses in between. BEML, Titagarh Wagon, Ircon, RVNL are some of the stocks where one could consider playing this momentum and one could definitely look at this theme from a 6-12 months perspective.”
Zomato and technology stocks, including IT platforms, hold potential for strong growth in the next two to three years due to settling issues and better management. Hemang Jani, an independent market expert, says that IndiGo has gained market share and is shifting from a pure aviation play to a consumer bet due to India s growing middle class and expanding airports. Meanwhile, Escorts is benefiting from its business diversification and a growing tractor market in India.
The Indian earnings season is going well with about 33 Nifty companies delivering decent numbers. Despite the downgrade of the US rating by Fitch Ratings from AAA to AA+, there is no need to be too concerned as the broader trend for the Indian market is positive. The hospitality industry is looking particularly good with strong traction in occupancy and pricing.