Indian stock markets have seen an unmatched rally in 2017 with Sensex and Nifty returning around 29% in the 12-month period. Sensex had amassed nearly 7,500 points to breach the psychological level of 34,000 while Nifty made a top of 10,552.4 in last one year. Today only, the overnight record closing of Nasdaq and S&P 500 on Wall Street uplifted the domestic market sentiments which led to cheer on Dalal Street. Following which, India’s stock market extended gains to open little higher on Wednesday with Sensex and Nifty inching up by 0.3% each while most of the mid-cap stocks outperformed in the early session. In 2017, many large-cap stocks such as Maruti Suzuki, Tata Steel, HDFC Bank, Reliance Industries widely outperformed Sensex and Nifty returning up to 85%. To ride the large-cap wave in the new year 2018, we bring you three large-cap stocks to buy and gain up to 26%.
Interglobe Aviation — Axis Securities
Shares of Interglobe Aviation have risen more than 45% over the last one year period. The research and brokerage firm Axis Securities has given an upside of 26% to a target price of Rs 1,505 from a recommendation price of Rs 1,199. “We believe Indigo deserves to trade at a premium as the underlying passenger traffic growth for the industry is significantly higher at CAGR of 9% over the next 20 years vs. Europe (4%), Middle East (6%) and US (2%),” Axis Securities said in a report.
Tech Mahindra — SMC Global Securities
Shares of Mahindra group’s IT company Tech Mahindra have almost been flat in the last 12-month period. The research and brokerage firm SMC Global Securities has given an upside of 16% to a target price of Rs 569 from a current market price of Rs 492.55. “It is expected that the stock will see a price target of Rs 569 in 8 to 10 months time frame on a two-year average P/E of 15.12x and FY19 (E) earnings of Rs 37.66,” SMC Global Securities said in a report.
Bharat Electronics — SMC Global Securities
Shares of Bharat Electronics have grown over 40% in the last one year and SMC Global Securities has given a target price of Rs 213 which implies an upside of 17% from a current market price of Rs 181. “We expect the stock to see a price target of Rs 213 in 8 to 10 months time frame on a 1 year average P/E of 26.46 and FY19 (E) earnings of Rs 8.05,” SMC Global Securities said in a report.
BSE Sensex rose 186.11 points to hit the day’s high at 33,998.37 and NSE Nifty added 61.4 points to mark the day’s high at 10,503.6 on Wednesday. Meanwhile, The Indian rupee reversed the four-day rising trend on Wednesday but was still trading at a 28-month high against the US dollar. The rupee opened down by almost 10 paise at 63.58 against the US dollar on Wednesday but very quickly pared off some of the losses and was trading at a 28-month high. The domestic currency rupee made a top of 63.50 apiece US dollar on Wednesday. The Rupee was trading down 2 paise at 63.50 vs the US dollar in the wee hours of trading at the interbank foreign exchange market on Wednesday. Earlier yesterday, the rupee added as much as 20 paise against US dollar to close at 63.48 — almost a two-and-half-year high.