After the stock market started flagged off the new fiscal on a positive note, global financial services conglomerate Goldman Sachs says that corporate earnings is seen improving in the country. We take a closer look at its top stock bets.
After the stock market started flagged off the new fiscal on a positive note, global financial services conglomerate Goldman Sachs says that corporate earnings is seen improving in the country. In an interview to ET Now, Timothy Moe, Co-Head of Macro Research in Asia at Goldman Sachs said that the equity downturn is a ‘trading correction.’ Interestingly, the domestic stock markets have been borrowing cues from their global counterparts. This morning, Sensex and Nifty inched lower as most of the Asian stocks traded in the negative territory tracking the massive losses on Wall Street with Dow Industrials diving 458 points in a sell-off led by tech shares.
Apart from a an improvement in corporate earnings, Timothy Moe said that the macro picture too looks robust. According to the expert, rural spending in India will double in the next 5 years. Further, the domestic inflows are unlikely to get derailed. He advises that investors should buy inexpensive stocks with high growth potential.
Given the recent fall in the stock markets, Timothy Moe advises to buy ICICI Bank and TVS Motors after recent fall. Barring today’s surge in the shares, ICICI Bank’s shares lumped nearly 6% amid CBI inquiry into allegations of a possible quid pro quo involving the bank’s CEO Chanda Kochhar. However, the shares reversed yesterday’s losses and were trading at Rs 266.3 on NSE up by more than 1.7%.
Meanwhile, TVS Motors shares tanked in the morning trade to Rs 656.2, down by nearly 0.7%. Notably, TVS Motor Company (TVSM) has reported a strong set of volume number for March-18 across all segments, clocking growth of 27% on year. According to data released yesterday, the company sold 3,26,659 vehicles in March 2018 against 2,56,341 vehicles in March 2017.