Happy New Year 2018-From Indianmarketpulse

In the New Year, never forget to thank to your past years because they enabled you to reach today! Without the stairs of the past, you cannot arrive at the future!

May the New Year bring you courage to break your resolutions early! My own plan is to swear off every kind of virtue so that I triumph even when I fall.

Week Ahead: Auto sales, macro data among 10 factors for market to watch out for

Auto sales could be the first major cue in the New Year, along with some key economic data as well as movement on the crude front. The week would also mark the start of earnings season during the same month and the build-up to the Union Budget.

Bulls celebrated year-end party at Dalal Street on last trading session of calendar year post SEBI reforms yesterday, as the Sensex ended at record closing high, while it was a positive start to Nifty January series.

The SEBI's decision to allow exchanges to provide equity and commodity trading from next year; and to relax the entry norms for foreign portfolio investors boosted sentiment. The market, however, shrugged off fiscal deficit concerns.

The 30-share BSE Sensex rose 208.80 points to 34,056.83 and the 50-share NSE Nifty rallied 52.80 points to 10,530.70 today. For the week, indices gained 0.3 percent each.

The year 2017 was fantastic for the market as the Sensex spiked 28 percent and the Nifty surged 29 percent, driven by liquidity, government reforms, positive global cues, state elections results and hopes of earnings growth.

Arun Thukral, MD & CEO at Axis Securities, expects markets to do well as the corporate earnings improve going forward. "Though 2018 is being ushered-in amidst few macro concerns like rising crude oil prices, inching inflation along with an increase in the

government borrowing programme leading to some slippages on fiscal consolidation path; we feel that these developments would be short-lived," he said.

For the week ahead, auto sales could be the first major cue in the New Year, along with some key economic data as well as movement on the crude front. The week would also mark the start of earnings season during the same month and the build-up to the Union Budget. Here are 10 factors that are likely to move the markets ahead.

Auto Sales

The auto sector is likely to be in focus next week as major firms will declare their sales figure for the month of December.

On Friday, auto stocks gained ahead of the event. The Nifty Auto and BSE Auto index were up over 1 percent.

Tata Motors, Hero MotoCorp, Eicher Motors, Exide Industries and Motherson Sumi, among others, gained 1-3 percent on the NSE and BSE.

"Our channel checks indicate mixed 2W demand, with the momentum gained from the wedding season in the northern belt being partially negated by muted sales in Rajasthan, Gujarat and Maharashtra due to an inauspicious buying period. PV retails are picking up, driven by year-end related discounts and the rush to beat price increases from January. On the CV front, players are offering steep discounts (5% higher) and other incentives to clear the current stock ahead of the upcoming regulatory change that makes it mandatory for all new CVs to have air blowers (for better ventilation in the cabin) as a standard fitment from 1st January 2018," the brokerage said in a report.

Corporate Action

Around 10 companies will be meeting to discuss their results, raising of funds, and issue of securities, among others. NCL Industries will be meeting on January 2, 2018 to discuss its fundraising issue. Aarti Industries will be going ex-buyback on January 4, 2018. (Image source: SMC Research)

Economic Data

With the new month ahead, certain domestic data will be released next week. Nikkei manufacturing purchasing managers’ index (PMI) will be rolled out on January 2. The services PMI will also be rolled out on January 4, 2018. Official data on M3 money supply will also be released later in the upcoming week as well. (Image Source: SMC Research)

Stocks in Focus

Ferro Alloys Corp: The company has said that NCLT allowed the firm for further extension to submit resolution plan.

Jaypee Infratech: The company has received shareholder nod for appointment of Ram Bahadur Singh as CFO.

Allahabad Bank: The bank has raised Basel III-compliant additional tier-1 perpetual bonds series IV worth Rs 500 crore through private placement.

Brigade Ent: The realty major has purchased 12.95 Acre land for Rs 218 crore in Bengaluru.

Bank of India has received capital infusion to the tune of Rs 2,257 crore.

Central Bank of India’s Board will be meeting on January 3, 2018 to discuss infusion of Rs 323 crore by way of preferential allotment.

Cadila will be in focus after Zydus has received a final approval from US FDA for Valacyclovir tablets. They are used to treat herpes infections.

Phoenix Mills will be in focus after the company purchased shares in its subsidiary, Graceworks Realty and Leisure Pvt Ltd.

Technical Factors

The Nifty on Friday took support at the 5-days exponential moving average (DEMA) placed at 10,494 and made a strong bullish candle on the daily candlestick charts.

Formation of a bullish candle after two successive bearish candles tilt the trend in favour of bulls in the coming week. But, for the index to hit fresh record highs of 10600-10650, Nifty has to hold above 10500 on a closing basis.

HDFC Securities believes that underlying trend of Nifty from daily to monthly time frame is intact and bulls are still placed at the front seat. There is no confirmation of any reversal signals yet.

“The careful study of larger timeframe (weekly and monthly) is revealing that the market is gradually showing some signs of significant maturity at the new highs. Momentum and trend strength oscillators of weekly/monthly timeframes are indicating cautious approach at the highs,” the brokerage house said in a statement.

FII Flows

Domestic investors continued to be net buyers for December, offering support to the market at a time when FIIs have looked hesitant in this market too. Experts believe that it is this buying by DIIs that has provided the cushion to D-Street. For December, FIIs sold Rs 6,411.57 crore worth of shares, while domestic institutional investors (DIIs) were net buyers worth Rs 8,142.88 crore.

Global Cues

The Street will watch out for crucial economic data coming in from developed and other emerging markets. For instance, China, Europe and US will be declaring their manufacturing PMI on January 2, followed by truck sales and services PMI in US and China later in the week. Further, market could take cues from European CPI inflation, along with US employment data.

Crude

The Street will watch out for cues on the movement of crude oil. As such, markets have been rattled in the recent past on the back of rising oil prices. Brent crude prices have clocked USD 65-mark and have hovering around the same region. Meanwhile, US crude is also seen rising and settled around USD 60-mark.

Experts that Moneycontrol spoke to believe that so long that the commodity does not touch around USD 70, it may not be a threat. But a move above that could mean all bets being off.

Bond Movement

Bond yields have been rising in the recent past, largely on the back of inflationary issues as well as rising crude prices. This has, in turn, affected the markets here and got investors cautious of the movements as well.

Last week, the yields had also jumped after the government announced additional borrowing of around Rs 50,000 crore through gilts. The RBI has also swung into action as it cancelled two bond auctions on Friday. Yields were seen stabilizing after that move.

Going forward, experts believe, there could be further hardening on likely reversing of easing cycle by the RBI amid inflationary risks. Government borrowing has also worried investors.

Bitcoin

The Street would also look to see the regulatory view on bitcoins, the virtual currency which has witnessed phenomenal gains in the recent past. The currency clocked USD 19,000 during the year, before seeing a sell off, but has settled down from its wild swings.

The Ministry of Finance has cautioned people against investing in virtual currencies and compared them to ponzi schemes.

"There has been a phenomenal increase in recent times in the price of Virtual 'Currencies' (VCs) including bitcoin, in India and globally. The VCs don't have any intrinsic value and are not backed by any kind of assets. The price of bitcoin and other VCs, therefore, is entirely a matter of mere speculation resulting in spurt and volatility in their price."

Moreover, the Ministry of Finance has cautioned people against investing in virtual currencies and compared them to ponzi schemes.

"There has been a phenomenal increase in recent times in the price of Virtual 'Currencies' (VCs) including bitcoin, in India and globally. The VCs don't have any intrinsic value and are not backed by any kind of assets. The price of bitcoin and other VCs, therefore, is entirely a matter of mere speculation resulting in spurt and volatility in their price."

Simultaneously, in a note to clients, Morgan Stanley analyst James Faucette and his team made the case that it difficult to ascribe value to the cryptocurrency.

Bitcoin can’t be considered a 'real currency' like the U.S. dollar, because the cryptocurrency doesn’t have an interest rate associated with it, i.e. it has no cash flow, Faucette said.

MORE WILL UPDATE SOON!!

Goldman Sachs overweight on India, ups Nifty target to 11600; top 8 conviction buys

Goldman Sachs in a note last week remained overweight on India and raised the target for Nifty from 10,900 in September 2018 to 11,600 by December 2018, which translates into an upside of 11.6 percent from current levels.

  

If you missed the equity bus last month then don’t worry, there is plenty of upside still left in Indian markets which makes it a buy even at current levels.

The Nifty50 which has already rallied over 26 percent to touch a fresh record high is on its way to surpassing Mount 11,000 in the year 2018, which translates into an upside of over 11 percent.

Goldman Sachs in a note last week remained overweight on India and raised the target for Nifty from 10,900 in September 2018 to 11,600 by December 2018, which translates into an upside of 11.6 percent from current levels.

Other than India, the global investment bank maintained an overweight stance on China and Indonesia. It has a market weight recommendation on markets such as Hong Kong, Korea, Taiwan, Thailand, and Phillippines. It has an underweight rating on Australia, Singapore, and Malaysia.

We reaffirmed our strategic overweight stance on India post the bank recap news and raised our Nifty target to 11,600 (by end-’18). Within sectors, we raised PSU banks to overweight and highlighted 2 themes: 1) quality PSU/quasi-PSU banks; 2) infra-beneficiaries.

The global investment bank favours PSU banks and infra beneficiaries. Goldman has a neutral rating on SBI and Bank of Baroda. It maintained a buy rating on ICICI Bank.

The government recently unveiled a Rs 2.1 lakh crore, (representing 1.2 percent of GDP), recapitalisation package for public sector lenders which will be injected over two years.

The capital infusion will be funded through three sources -- Rs 18,139 crore from budgetary provisions, Rs 58,000 crore from the market as the government dilutes its stake and Rs 1.35 lakh crore through recapitalisation bonds issued by the government.

“We believe a robust recap plan could potentially fast track NPL resolution in the system and improve growth prospects by easing capital constraints to segments such as SMEs. In our view, corporate-oriented private-sector banks such as ICICI Bank seem better placed to benefit from this theme than SOE banks given more comfortable capital adequacy and retail franchise strength,” said the report.

Although historically recapitalisation has driven valuations for weak banks higher. It maintained a neutral stance on State Bank of India, Bank of Baroda and remained SELL on Punjab National Bank.

In the sectoral space, Goldman Sachs is overweight on private/PSU banks, autos and industrials. It says MarketWeight is on oil & gas, metals, cement, utilities, and telecom stocks. Goldman is underweight on IT, NBFCs, staples, and pharma.

Top 9 convictions buys from Goldman Sachs include names like Avenue Supermarts, Aurobindo Pharma, Kajaria Ceramics, HDFC Bank, ICICI Bank, BPCL, Maruti, and TVS Motor.

MORE WILL UPDATE SOON!!

Bye Bye 2017: Here are 4 resolutions investors can make for 2018 to generate wealth

It is hard to predict what will happen to market-linked investments on a 12-month basis, but what all investors can do is to be level-headed and pragmatic in their approach.

  

On the back of 30 percent plus equity returns in 2017, investors have high expectations from 2018. As we step into a New Year, it is time for introspection and resolve.

It is hard to predict what will happen to market-linked investments on a 12-month basis, but what all investors can do is to be level-headed and pragmatic in their approach.

Here are 4 important resolutions that will help one to get more out of their investments:

ave and invest first, spend next:

Saving is the cornerstone of investment. Yet, the focus on investment often takes the sheen off savings. Since investing requires capital, you have to save.

Investors should target 20-25 percent savings every month, and invest the money as per your risk profile and asset allocation strategy. Do not try to take loans to invest.

Also, avoid using leverage to gain big on investments. The simplest way is to save, and then spend.

Retain expenses but use incremental income towards investment:

A New Year often brings good news in the form of salary hikes and bonuses in some cases. But, the average salaried employee often fritters away the incremental income.

As a result, the investment capacity remains the same. To avoid this in 2018, retain the expenses at the same level as in 2017.

This will mean that you will be left with the higher income, which should be used to invest. A mere 10 percent annual rise in a regular monthly investment over ten years can boost by a significant amount.

Ascertain investment risk:

Investing entails a certain amount of risk. Investment risk can be of various types like interest rate risk, business/security risk, credit risk, taxability risk, inflationary risk, liquidity risk, currency risk and exchange risk.

Investors usually look at historical returns while deciding to invest. For 2018, try to find out the investment risk associated with the asset class, be it debt or equity, so that you understand the risk-reward pay off much better.

For instance, a high-risk junk bond that pays 2 percent more compared to a government bond may look attractive, but is it worthwhile to accept principal erosion risk for 2 percent more?

Create investment portfolio based on your goals:

Random amounts like Rs 1 crore or Rs 5 crore look big, but humans are driven more by emotions than just numbers.

While it is good to imagine yourself a crorepati in 15 years, if the Rs 1 crore is your retirement corpus then suddenly the goal becomes sacrosanct.

When you start sewing up investments in 2018, always create the investment portfolio depending on simple and achievable goals like son's higher education, second car, foreign trip, daughter's marriage, my retirement etc.

Defining a goal helps investors in understanding the amount of time and the amount of risk they can take to reach the destination.

MORE WILL UPDATE SOON!!

See 15% upside in Nifty in 2018, but likely amid volatile trade; 5 stocks to keep on radar

Key events to watch out in 2018 will be the Union Budget in February 2018, RBI Policy in April 2018 and Monsoon.

On the Nifty50 index, we expect a 15 percent upside in 2018 largely on the hope that earnings growth in FY19 is likely to remain strong,” Avinnash Gorakssakar is a Head of Research at Joindre Capital said an interview to Moneycontrol’s Sunil Shankar Matkar.

2017 has been a great year for Indian equities as the market grew by around 25 percent. Do you see same kind of rally in 2018 also and what is your Nifty target for December 2018?

We expect markets to remain volatile in 2018 on account of both global and local factors like rise in interest rates by Federal Reserve, rising inflation in India, and higher crude prices expected further. In such a scenario we don’t expect a repeat of 2017 as of now but are pretty confident that stock specific opportunities will continue to come.

On the Nifty50 index, we expect a 15 percent upside in 2018 largely on the hope that earnings growth in FY19 is likely to remain strong.

Key events to watch out in 2018 will be the Union Budget in February 2018, RBI Policy in April 2018 and Monsoon. Also commentary from the Federal Reserve and developments on crude prices and the rupee movement will be key factors to watch in 2018.

Global risks in 2018 will largely come from rising crude oil prices, and global liquidity flows and Fed Commentary in 2018 and trajectory of interest rates in the coming year.

Domestic liquidity will continue to remain good as equity remains the best asset class as compared to all other asset classes like fixed income, real estate and gold which are unlikely to show any big upside in the medium term.

Yes 2018 will continue to remain good for IPOs. However the market will closely look at valuations of such IPOs closely and weak candidates with heavy valuations are unlikely to attract big fancy from investors.

Investors will remain selective but surely look at quality IPOs at reasonable valuations.

We may see a strong earnings growth story coming out from FY19 onwards as the second half of FY18 is also likely to see some leftover impact of the GST which will be normalized by this time.

We may surely see some populist measures in the coming Union Budget in February 2018 as this will be the last Budget before the 2019 general elections. However after the Gujarat elections verdict we may see rural, infra to be the focus areas going ahead but this will be no different from what has been done by the Modi Government earlier.

However if we don’t see any heavy populist measures in this Budget and although this year fiscal deficit targets are unlikely to be met, then markets would look at macro numbers closely going ahead.

Irrigation, roads/housing, infrastructure, railways and healthcare services will be the focus areas in this Budget.

Jain Irrigation, Finolex Industries, GNFC, Tata Motors and Sadbhav Infrastructure are five best picks for 2018.

MORE WILL UPDATE SOON!!

Top 10 stocks rose up to 137% in 2017, but can still rally up to 26% in 2018

The market is expected to continue its rally next year as well, but the gains may be less compared to 2017 as the coming year is expected to be volatile due to events like state elections and full-fledged Budget of Modi government before going into general elections 2019.

What a year it was! The 30-share BSE Sensex registered 28 percent gains in the year 2017 to end at a record closing high on the last day of the year.

The broader markets not only participated in the bumper rally but also outperformed frontline indices as the Nifty Midcap surged 48 percent. All sectoral indices, too, closed the year on strong note barring Pharma.

The solid rally was largely led by liquidity, which was the king in passing year, followed by Modi government reforms, assembly elections, hopes of corporate earnings growth and positive global cues.

The market is expected to continue its rally next year as well, but the gains may be less compared to 2017 as the coming year is expected to be volatile due to events like state elections and full-fledged Budget of Modi government before going into general elections 2019, experts suggest.

We expect markets to do well as the corporate earnings improve going forward as we move ahead in the year but given the spectacular returns in 2017, we should temper our expectations for 2018.

Thukral said the real fruits of the reform of the decade such as GST would be seen in the next 12-18 months as things get sorted out, tax revenues improve and consumption rises following a drop in prices for the end users.

HDFC Securities in a note said that investors would now have to moderate their expectations for index returns in calendar 2018. It feels that investors would keep getting individual stock opportunities that could yield much higher returns.

Though 2018 is being ushered-in amidst few macro concerns like rising crude oil prices, inching inflation along with an increase in the government borrowing programme leading to some slippages on fiscal consolidation path; he feels that these developments would be short-lived.

The domestic brokerage firms further added that the focus may slowly shift from liquidity to earnings. “An issue for worry is whether the markets have fully discounted all the India positives in advance and is going overboard on valuation just based on expected unending inflows from global/domestic sources,” it said.

Here is a list of 10 stocks that rallied up to 137 percent in 2017, still have potential to increase up to 26 percent in the coming year:

Brokerage - Motilal Oswal

Dabur India | Rating - BUY| Target - Rs 410 | Return 17%

Nearly 50 percent of Dabur’s domestic sales come from rural India – the highest proportion among FMCG companies – making it an ideal play on rural revival.

For Q2FY18 rural sales grew by 11 percent, faster than its growth in urban sales at 10 percent. Worries on both the wholesale channel due to GST implementation and rural sales are receding faster than expected.

L&T | Rating: BUY| Target Rs 1,440 | Return 15%

Larsen & Toubro (L&T) is exposed to several levers across business/geographic segments and has emerged as the E&C partner of choice in India, which provides a robust foundation to capitalise on the next leg of the investment cycle.

Under its new five-year strategic plan to FY21, LT aims to - 1) grow sales at 12-15 percent CAGR to reach Rs 2 lakh crore by 2021; 2) expand margins to 11.2 percent, up 120bp over FY16, driven by higher profitability in key manufacturing verticals (power, process, forgings and Katupalli yard) and hydrocarbons; 3) unlock value via asset sales to drive return on equity (ROE) to 18 percent from 12 percent in FY16; and 4) reduce working capital to 18 percent of sales from 24 percent currently.

Oberoi Realty: Rating BUY | Target Rs 580 | Return 21%

Oberoi Realty is a Mumbai-focused premium real estate developer, with a presence in the residential, commercial and hospitality segments. It enjoys EBITDA margins of more than 50 percent.

Its residential portfolio comprises 19msf of the developable area, providing strong growth and cash flow visibility over the next 10-12 years. The recent foray into affordable housing completes its bouquet of offerings and should help it enjoy tax incentives.

It plans to multiply its annuity portfolio from 1.6msf to 4.2msf by launching two new malls and an office complex on its existing land bank, which is fully paid for. The expansion will result in leasing income increasing by 4x over the next five years.

Nilkamal: Rating - BUY| Target - Rs 2,215 | Return 21%

Nilkamal is a market leader with 32 percent share in the moulded furniture segment and sells about 1.4 million plastic chairs per annum (one of the largest in India). The plastics division (89 percent of revenue) has grown consistently at 8.3 percent CAGR over FY12-17.

The retail division, @home has a turnaround from negative EBIT to Rs 3.2 crore EBIT profit in FY17. Over FY12-17, Nilkamal's revenue and PAT grew at 7/17 percent as EBITDA margin expanded by 110bps.

We expect margins to further improve. The company has free cash flows with very low leverage (D/E of 0.14x FY17). The return ratios (RoE) improved from 10 percent in FY15 to 18 percent in FY17.

Motherson Sumi: Rating BUY | Target - Rs 458 | Return 21%

Motherson Sumi has four divisions wiring harness (15 percent), polymers (52 percent), mirrors (28 percent) and others components (5 percent), operates 230 plants in 37 countries and has an enviable track record of strong performance with an unwavering focus on capital allocation.

It is in a sweet spot to benefit from evolving disruptive global automotive trends, which would drive its next wave of growth. The latest acquisition of PKC strengthened its presence in commercial vehicle wiring harness segment.

Premium valuations are justified considering sharp improvement in post-tax RoCE (around 21.2 percent in FY20 versus average around 13.4 percent in last 5 years) and the possibility of stronger than expected earnings growth. Value the stock at 25x FY20E consolidated EPS with target price Rs 458.

Brokerage - Axis Direct

SBI Life Insurance: Rating BUY| Target - Rs 850 | Return 21%

SBI Life with its unparalleled distribution network, leadership in new business premium (NBP) among private insurers, strong management team and top quartile service ratios is a proxy play to the huge opportunity in India’s life insurance space.

We expect 19.5 percent enterprise value CAGR over FY17-20E to Rs 28,200 crore driven by around 30 percent CAGR in Value of New Business (VNB) to Rs 2,270 crore in FY20E. We initiate coverage with Buy rating and target price of Rs 850.

InterGlobe Aviation: Rating BUY| Target - Rs 1,505 | Return 26%

It is best placed to capitalise on domestic passenger traffic growth. Indian aviation industry is the fastest growing in the world. The domestic passenger traffic posted CAGR of around 13 percent over last decade (grew at 17 percent YoY in CY17 YTD).

Indigo’s key moat is its low operating cost. Bulk orders help in negotiating significantly lower purchase prices for aircrafts which generate cash incentives – a key driver for its cash flows and earnings.

Endurance Technologies: Rating BUY| Target - Rs 1,550 | Return 14%

Endurance Technologies (ETL) ticks all the boxes of what we like in an auto component firm – (1) high economies of scale – given that it’s the largest 2-wheeler auto component player; (2) one-stop-shop for OEMs – given its strong presence in 4 key products; (3) diversified in terms of products/geography; and (4) consistently outperformed underlying industry.

We see ETL as the best way to play the 2Ws theme in India. Given its unmatched scale, strong R&D, and 4 key products under 1 roof (castings, suspension, transmission, and brakes), it’s a one-stop-shop for OEMs that anyway strive to consolidate their vendor base. Our target price of Rs 1,550 values the company at 15x FY20 EV/EBITDA - a slight premium to its leading auto component peers.

Godrej Agrovet: Rating BUY| Target - Rs 648 | Return 14%

We rarely see companies where all factors align, viz: (1) secular business with deep moat; (2) attractive industry dynamics; (3) strong corporate governance; and (4) excellent management team under a great leader. Godrej Agrovet (GAVL) is one such opportunity.

GAVL will continue its multi-year secular growth; tremendous growth potential in each segment as each business segment. GAVL operates in is either under-penetrated (animal feed) or in high growth areas (dairy, poultry, agri-inputs).

It has strong financials; more than 40 percent PAT CAGR over past 7 years, minimal working capital requirement, RoCE of around 20 percent, high asset turn (~5x). We expect 20 percent PAT CAGR over FY17-21.

Brokerage - HDFC Securities

Jagran Prakashan: Rating BUY | Target - Rs 215 | Return 26%

Jagran Prakashan is India's leading media and communication group. It has a pan India footprint with interests spanning across Print, OOH, Radio and Digital.

The radio industry is expected to grow at an excellent rate going forward due to an increase in listenership. Digital Advertising is the fastest growing vertical in the Indian M&E industry and going forward, we expect high growth on the back of higher internet speed, low cost of bandwidth and Government’s push for ‘Digital India’.

We recommend Jagran Prakashan Buy at CMP of Rs 170.45 (10x of FY20 EPS) and add on decline of Rs 154 for the sequential targets of Rs 199

(12.1x of FY20 EPS) and Rs 215 (13.1x of FY20 EPS).

MORE WILL UPDATE SOON!!

Nifty rally could continue in 2018 towards 12,000, keep these 4 top stocks on radar

No doubt the valuation on the index has moved up from 19 to 26 P/E, so the index might look expensive but again pocket of opportunities exist in various sectors and companies.

 

The valuation picture currently looks little stretched by all means. Is it fair to call this market a ‘buy on dips’?

No doubt the valuation on the index has moved up from 19 to 26 P/E, so the index might look expensive but again pocket of opportunities exist in various sectors and companies. So it's surely a buy on dips market but at the same time if you get good business at attractive valuation today then one should buy it.

2017 has been a great year for Indian equities as the market grew by around 25 percent. Do you see same kind of rally in 2018 also and what is your Nifty target for December 2018?

As we move to 2018, what are your 4 best picks for 2018?

Mirza International

The company sells footwear under the red tape brand and is doing well recently. Their strategy is aligned towards selling more in the domestic market rather than focussing on exports !

This augurs well as the margins in domestic business is very good . They are also expanding into new segments like sport shoes and women's footwear so this will help the company to target a larger set of population we expect company to post good growth and good profitability going forward.

Pondy Oxides

Company is the business of lead processing as global lead mining bans exists in many countries and some countries have ban lead processing due to pollution . This offers an unique opportunity to the Indian lead processors. Pondy has a descent capacity and is financially and operationally well managed company. We expect company to post great set of earnings going forward

DHFL

It is one of the leading housing finance companies with a very low valuation compared to its peers! Last year the company has raised huge capitals and competitive rates we expect the company to keep on posting good earnings growth and profitability and hence we expect he stock to double from current levels in 2018 due to convergence of the valuation gap with peers and due to growth in the segment

Bajaj Finserv

Company is poised for growth as the company's life insurance business has picked up in a very nice way , company holds stake in Bajaj Finance which he done well over the past years. We expect the insurance sector to do well and hence Bajaj Finserv is a good bet for a long term.

MORE WILL UPDATE SOON!!

Market wraps up 2017 on a high note. What stood out for D-Street this year?

It has been a good year for investors, with Sensex and Nifty returning up to 29 percent this year, a healthy gain. The Nifty clocked fresh milestone of 10,000 in July earlier this year, while the Sensex clocked 34,000 for the first time in the past few sessions.

The market on Friday concluded trading for the last time in this calendar year.

Frontline indices have ended the year on a positive note, with the Sensex ending over 200 points higher, while the Nifty ended above the 10,500-mark.

It has been a good year for investors, with Sensex and Nifty returning up to 29 percent this year, a healthy gain. The Nifty clocked fresh milestone of 10,000 in July earlier this year, while the Sensex clocked 34,000 for the first time in the past few sessions.

Experts highlight that the market largely had a one-way movement, with the intensity of corrections being not very deep. The deepest correction in 2017 was the shallowest ever in the history of the National Stock Exchange… It shows how steady the markets have been this year and what domestic liquidity can do to volatility,

So, how do individual aspects to the market look like? How have broader markets performed? What were the standout stocks?

Lets take a look at such data on an annual basis and lists out a snapshot of multiple aspects of the market.

Best performing Sensex stock

Best performing Nifty stocks

Bajaj Finance tops the list with 108 percent gains, followed by Tata Steel, and Maruti Suzuki, among others.

Best Performing IPO

In the non-SME space, Apex Frozen Foods witnessed a huge uptick in the recent past, gaining over 500 percent. Shankara Building Products and Avenue Supermarts are a close second and third with gains of 280-290 percent.

Best performing midcaps

Vakrangee tops the charts with a gain of over 200 percent in the past one year, while Dalmia Bharat comes in fifth with 135 percent gain.

Bhansali Eng tops the chart with gains of around 744 percent in the past one year, while Adani Transmission also features in the list.

MORE WILL UPDATE SOON!!

In 2017's bull run, 20 stocks destroyed investor wealth the most

Around 20 stocks in BSE 500 companies lost between 10 and 69 percent, thereby eroding a significant chunk of their portfolio.

Fresh milestones for indices, healthy returns, and strong brands getting listed are attributes that can be associated with the Indian market this year.

The Nifty, in July, clocked 10,000 for the first time ever, followed by 10,500 which was breached in the past few sessions. The Sensex, on the other hand, on December 26, hit 34,000 for the first time.

But, the rally is not over yet as most experts believe that Nifty is likely to scale Mount 11K in the year 2018, according to a poll conducted by Moneycontrol.com.

Moreover, the indices returned between 27 and 28 percent on a year to date basis, ensuring that investors had a good year of wealth creation.

The good run can also be deduced from the fact that the Sensex and Nifty were the second-best performers among global markets. The Hang Seng returned 33 percent on a year to date basis.

There were stocks such as Avenue Supermarts, which doubled investors’ wealth in the first few minutes of trade, whereas Maruti Suzuki hit Rs 10,000 for the first time.

But not all is well for investors of some of the biggest wealth destroyers. Around 20 stocks in BSE 500 companies lost between 10 and 69 percent, thereby eroding a significant chunk of their portfolio.

As the table goes, names such as Reliance Communications, Sun Pharmaceuticals, Tata Motors, Dr Reddy’s Laboratories, Glenmark, Lupin, and Sintex Industries, among others lost the most this year. Interestingly, nine out of the top 20 wealth destroyers belong to healthcare sector.

Sintex was the top loser, falling 69 percent, Reliance Communications and Lupin, which fell 52 and 41 percent.

Looking at this data from a 10-year perspective also throws up some other trends. For instance, stocks such as Sintex, Reliance Communications, Siti Networks, Bank of Maharashtra, Aban Offshore, and IDBI Bank have all given double-digit negative returns in the past 10 years. So, there is a good chance that if you have held these stocks in the past decade, it would not have made investors happy.

Going forward, experts do see better times for the market, but they also caution on some downside risks.

Indian markets will attract global attention once earnings growth visibility improves. So much wealth creation has happened globally across markets, typically some part of that wealth has the potential to get allocated to emerging markets like India, though it is difficult to gauge the timing or extent of that. Among downside risks, he believes macro story not playing out and earnings cycle taking longer time to revive could hit the market.

MORE WILL UPDATE SOON!!