Piramal Pharma may double in a year; 4 metal stocks can give 20% return in 3 months : Sanjiv Bhasin

Given an analogy of the Indian Premier League to Dalal Street, how should one select the stocks? Smallcase portfolio manager Divam Sharma recommends a balanced portfolio that includes companies from across the market. Sharma suggests different categories of stocks that correspond with different player positions in a cricket team, such as Welspun Enterprises, Coastal Corporation and Rain Industries. He believes that historic moments for India's stock markets, such as the victory in the 1983 Cricket World Cup, are still ahead.

“I am of the opinion that we are just passing time and consolidation is very healthy for the market. But the real action will start today. It is going to be metals, banks, and construction and autos which will drive the market higher. So cheers to a new sparkling Diwali which comes next week. I am very bullish on the market.”

We have the choice to hold a mishmash of stocks acquired with inadequate information, or a portfolio made up of the largest, liquid, profitable, actively traded, widely held stocks. It beats me why the sensible choice of holding an index doesnt appeal, compared to a poorly collated portfolio.

“I would stick with L&T, ABB, and Cummins. These three are the best among the capex stocks. There the managements have indicated that they are on the roll. They do not need capital as such and I think that these are the bellwethers you should own to ride this market.”

On a year-to-date basis, the top gainer in his Rs 1,500-crore portfolio is smallcap civil construction stock Om Infra which has rallied 271%.

Stocks to buy: HDFC Securities’ Institutional Research Desk has picked two stocks to buy amid this market momentum based on their fundamentals and decent upside potential. These stocks to buy include BSE and Crompton Greaves Consumer Electricals.

The share price is like a pendulum which oscillates between overvaluation and undervaluation based on the news flow and market sentiment. When the markets are going through a major correction, it provides numerous opportunities.

Stocks such as Rama Steel Tubes, Filatex Fashions, Indianivesh, Magnum Ventures, Euro Asia Exports, Madhusudan Securities, Imagicaaworld Entertainment, Abhirami Financial Services, Tirupati Tyres, Soma Textiles, and Deep Diamond India have gained over 100-700% from the March 2022 levels.

Day trading stocks: Experts have recommend six stocks to buy today — Sun Pharma, Divi's Lab, Ashok Leyland, Tata Steel, HDFC Life, and Mahindra & Mahindra Finance

In a financial year where the number of stocks gained is much larger than stocks that end in red, there are some surprises in the list of stocks that have ended FY 24 in red. Surprise because of two reasons. First, these are all largecap stocks where fundamentals are surely not in doubt. They have consistently seen earnings inching upward. Yes, one can have a debate about the rate of growth at which earnings have been less than satisfactory. But then they have grown, except in 3 cases, where one can argue that earnings are just refusing to move up. The second surprise is that some of them have created great wealth over the long term. So, if they have not been able to gain in one year should one ignore them. The list is filled with major surprises, a company that is amongst the top ten stocks in terms of market capitalization in the Indian stock market. History has shown that in the stock market, if the fundamentals of a company are fine, then sooner or later they make a comeback.