Nifty nears six months high; Maruti Suzuki, Bharti Infratel among 5 stocks to buy

The NSE Nifty index surpassed its previous high of 2016 and touched a new intraday high of 7,983.

Stocks in focus today
ICICI Bank stocks were trading 1.46 points down at Rs 259 (9.37 am) after it reported 25 per cent fall in net profit at Rs 2232.35 crore for the quarter ended June 30, 2016 against Rs 2976.16 crore in the corresponding quarter a year ago.

Better-than-expected corporate earnings supported benchmark indices in morning trade on Wednesday. The NSE Nifty index surpassed its previous high of 2016 and touched a new intraday high of 7,983. Earlier, the index hit its intraday high of 7,978.45 on April 21. Now, the 50-share index is trading at its highest level since November 6, 2015.

Market experts are bullish on domestic equity markets for the ongoing calendar year. Already, key benchmark indices BSE Sensex and NSE Nifty jumped over 3 per cent on a month-to-date basis till April 27. The government and the Reserve Bank of India (RBI) are taking measures to clean up the mess in PSU banks, which is one of the major issues facing the economy. This along with the improving macroeconomic fundamentals and attractive valuations should give the confidence to investors.

Renu Pothen, research head, said, “We believe that the biggest USP for the Indian markets is the combination of incremental steps by Government which will lead to a complete overhaul of the economy in the coming years and a pro-active Central Bank whose priority is to reduce inflation without compromising on growth.”

G Chokkalingam, founder, Equinomics Research and Advisory, said, “We believe Sensex can surpass 30,000 by end of December 2016.”

As markets experts look bullish on Indian equity markets, we collate a list of stocks which can give you good return in the ongoing calendar year.

Arvind Ltd
Recommended By: Geojit BNP Paribas Financial Services
Target Price: Rs 304
Why Buy: Key brands of Arvind have continued to perform despite dull market conditions. Margin growth is expected to improve with the help of better inventory management. Shares of Arvind were at Rs 284.65 on Tuesday.

Granules India
Recommended By: Geojit BNP Paribas Financial Services
Target Price: Rs 141
Why Buy: The likelihood of adding more abbreviated new drug applications (ANDA) and the company’s venturing into formulation business is expected to improve margins. The scrip was at Rs 132.30 on Tuesday.

Maruti Suzuki
Recommended By: Karvy Stock Broking
Target Price: Rs 4,400
Why Buy: Maruti Suzuki on Tuesday reported its highest-ever annual profit of Rs 4,571 crore for the year ended March 31, up almost 25 per cent year-on-year. According to Karvy, the company’s strategy to launch its premium products through dedicated channel of NEXA would improve company’s brand image and overall sales by gaining shares over next 2-3 years. All these new models at better pricing has been playing key role in expanding average realisation per vehicle. Shares of the company closed at Rs 3869.45 on Tuesday.

Bharti Infratel
Recommended By: Religare Capital Markets
Target Price: Rs 510
Why Buy: Telecom tower firm Bharti Infratel on Tuesday reported 19 per cent jump in net profit at Rs 662 crore for the quarter ended March 31, 2016, on the back of growth in network rollout by operators. It had reported a net profit of Rs 558 crore in the same period last fiscal. Post Q4 results, Religare in a research note said, “We continue to like Bharti Infratel for its market leadership and strong balance sheet.” Bharti Infratel was at Rs 363.80 on Tuesday.

Mahindra Lifespace Developers
Recommended By: Angel Broking
Target Price: Rs 554
Why Buy: Mahindra Lifespace Developers on Tuesday reported 59 per cent increase in consolidated net profit to Rs 48.63 crore for the March quarter. Its net profit stood at Rs 30.62 crore in the year-ago period. Angel Broking is bullish on Mahindra Lifespace Developers and said, “One of the positives from 4Q FY2016 results is the launch of new residential project, Vivante in Andheri East, which has saleable area of 0.16 mn sq.ft. We continue to maintain ‘Buy’ rating on the stock with price target of Rs 554.” The scrip was at Rs 459.65.

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