Bet on smaller banks for 5-10% upside, but long-term outlook weak: Hemang Jani
Hemang Jani, Senior Vice-President, Sharekhan, says on a broader level, things are not looking too good for the market in terms of earnings. Even banks are hinting that slippages could continue to be on the higher side, he adds.
Hemang Jani is bullish on UPL, Trent and ABFRL. Here’s why
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Neutral on Tata Motors, positive on Bajaj Auto: Hemang Jani, Sharekhan
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Look at midcaps like SRF, Polycab, Balkrishna Industries: Hemang Jani
There can be a case for disappointment from financials in terms of overall growth. At the same time, certain sectors are back in the reckoning like telecom and certain mid & smallcap stocks. Wherever you see a sector showing better delta in terms of growth and the midcap space is showing good numbers, money could move from banking to these sectors.
Maruti likely to see 11-12% revenue growth in Q3: Hemang Jani
Hemang Jani, Senior Vice President, Sharekhan, says the Maruti stock is already up about 20-25% from the lows and there is not a very strong visibility in terms of the growth in the next couple of quarters. The delta has been positive but we have a long way to go in terms of getting a big growth back into the cycle.
Banking sector set for more pain, deratings likely: Hemang Jani, Sharekhan
In terms of the NPL cycle and loan growth, there is a huge disconnect between what is being reported by banks and what is generally being expected and that continues to be a major worry. Also, there is over-ownership across private banks as the weightage is still very high and most of the investors are hiding in very few banks.
High inflation print unlikely to dent market sentiment: Hemang Jani
Seeing a strong rebound across midcap and smallcap stocks, says Hemang Jani.
Why Hemang Jani is betting on Airtel, Tech M and Biocon
We are looking at a 35-40% growth in the operating profit for Airtel. Biocon has its own growth story and there is no pricing pressure. We are expecting good strong numbers from Tech Mahindra as it is much cheaper than the rest of the IT companies. In medium to long-term, among cement stocks, Ramco, JK Lakshmi & UltraTech present good opportunities.
Avoid smaller banks and PSBs except for SBI: Hemang Jani
We should not try to move into smaller banks or PSU banks other than SBI just because they are cheap because the environment around us continues to be difficult. Stay with the quality where there is a growth visibility and a reasonably good asset quality. The focus will continue to be on HDFC Bank, ICICI Bank, SBI and Axis Bank.
People opening up to quality midcaps, including NBFCs: Hemang Jani
For now, market to focus on the same bunch of performers in 2020 as well. People would continue to go for companies where there is some degree of growth visibility. Once we are witness to some sort of revival in the economy and risk appetite is back as also flows, you will see broader market participating in a big way.
Export basket including IT, pharma and metal stocks looks positive: Hemang Jani
The focus now will shift to earnings positive surprises and to the companies, better placed in terms of margins, etc., says Hemang Jani, Sen...
Ready to bet on Maruti, M&M for next couple of years: Hemang Jani, Sharekhan
We are seeing a bit of green shoots in the passenger vehicle category though the actual growth or the positive delta is not too good. One can take comfort from the fact that we are seeing a bit of revival. Maruti per se is looking good but I do not think the slowdown is really reduced in broader auto pack.
No need to worry about NCLAT verdict on Tatas: Hemang Jani
Some of the metal stocks or sectors which were not in favour like metals and telecom are coming back.
Stop hoping midcaps and smallcaps would revive now: Hemang Jani, Sharekhan
The same set of companies which have shown some performance would continue to do well.
Earnings, global sentiment and flows are key triggers for market now: Hemang Jani, Sharekhan
Among cues that we could be looking at for the next broader move of the market,earnings would be on top of mind. People would start talking about what kind of numbers we are looking at and whether there is really any indication of revival in midcaps and smallcaps. That is something that we would definitely be watching out for.
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