A host of brokerages picked their top stock picks for the last month of Calendar 2022 in the first week of December. SBI, Varun Beverages, Maruti Suzuki, ICICI Bank, Ashok Leyland and IndusInd Bank are some of the stocks recommended by more than one brokerage. Analysts think that the upside capped for the Nifty in the near future.
Axis Securities likes SBI, Tech Mahindra, Maruti Suzuki, ICICI Bank, Tech Mahindra, Infosys and Bajaj Finance as its top large cap picks. It prefers Dalmia Bharat, Polycabs India, Federal Bank, Varun Beverages, Ashok Leyland and APL Apollo in the midcap space. HealthCare Global Enterprises, Praj Industries, CCL Products and PNC Infratech are its preferred smallcap picks.
Emkay Global is overweight on large caps such as ABFRL, IndusInd Bank, M&M, Maruti Suzuki, while it has buy ratings on mid and smallcap stocks such as ABFRL, Ashok Leyland, Escorts, Karur Vysya Bank, UNO Minda, Varun Beverages, and Westlife Development.
This brokerage has raised its rating for the metals sector to 'equal weight' from underweight earlier, due to firm metal prices in response to measures announced in China to revive the property sector, anticipation of the reopening of industrial activity in China and weakening dollar of the dollar, driving risk on sentiment.
Motilal Oswal preferred large cap picks including Reliance Industries, Infosys, ICICI Bank, SBI, Bharti Airtel, ITC, Maruti Suzuki, Titan Company, UltraTech Cement and Coal India. It also likes IndusInd Bank, Apollo Hospitals and Macrotech Developers. Among its midcap and smallcap picks are : Varun Beverages, IDFC First Bank, Ashok Leyland, Jubilant FoodWorks, Metro Brands, Vinati Organics, Angel One, Cams Services and Lemon Tree Hotel.
Jefferies suggested 19 top buys ideas, including ICICI Bank, SBI, IndusInd, ICICIC Prudential Life, Tata Motors, Maruti, TVS, L&T, Thermax, Concor, Lodha, Godrej Properties, GCPL, Zomato, Sun Pharma, Indian Hotels and Supreme Industries, among others.
IDBI Capital Makets likes stocks like Ultratech Cement, Cholamandalam Finance, Bata India, Kajaria Ceramics, City Union Bank, PNC Infratech, Zensar Technologies, Safari Industries and Newgen Software.
ICICI Securities has entered high optimism zone due to the fact that the P E ratio touches 20 times and the VIX has slumped, which has set the stage for subpar returns ahead, according to a strategy note by ICICI Securities.
There is a negative correlation between forward P E multiple and 1 year forward returns for the NIFTY 50 index. It said that current valuations imply sub-par 1 year forward returns for Nifty.
Emkay believes that the index's upside is capped because of expensive valuations of 20.3 times on a forward 12 months basis forward history, especially in light of continued geopolitical risks and risk of higher crude prices - OPEC supply cuts, EU potential embargo on Russian oil.