November stock picks: SBI, IndusInd, Ashok Leyland, Varun Beverages & more

After strong market returns in October, upside for NSE benchmark Nifty looks capped in the short term, said analysts. IndusInd Bank, Ashok Leyland, SBI, Maruti Suzuki and Varun Beverages are among few scrips that at least two brokerages have mentioned as their November stock picks.   

Emkay Global’s high-conviction large cap list includes ICICI Bank, IndusInd Bank, Mahindra & Mahindra (M&M) and Maruti Suzuki. It is underweight on Punjab National Bank . The brokerage likes Aditya Birla Fashion and Retail, Ashok Leyland, Escorts Kubota, Karur Vysya Bank, Varun Beverages and Westlife Development among small & mid cap stocks. 

ICICI Securities said it is continuing to prefer themes related to investment rate, discretionary consumption and improving credit growth.

In the investment rate theme, it prefers  L&T, NTPC, Coal India, NHPC, UltraTech, JK Cement, Ashok Leyland, Balkrishna Industries, Tata Communications, Greenpanel, Century Plyboard, Indraprastha Gas, GAIL, ONGC, Gujarat Fluorochemicals, Brigade Enterprise and Phoenix Mills. 

In the consumption theme, it prefers Tata Motors, Dabur India, Nestle, Jyothy Labs, Sapphire Foods, Metro Brands. In the heathcare theme, it likes Dr Reddy’s, Torrent Pharma, Alkem Lab while in the financials and credit growth theme, its preferred stocks are  SBI, IndusInd and SBI Life.

Ashika Stock Broking has Reliance Industries, HDFC Bank and Titan Company as its top November picks.

Axis Securities said an aggressive policy tightening will help curbing inflationary pressure, but elevated oil and commodity prices would continue to pose challenges to the market’s valuation multiples in the next few quarters.  

“While the medium to long-term outlook for the overall market remains positive, we could see volatility in the short run with the market. In this context, the current setup is a ‘Buy on Dips’ market,” it said.

The brokerage is advising investors to maintain about 10 per cent liquidity to use any dip in a phased manner to build a position with an investment horizon of 12-18 months. 

It likes stocks ICICI Bank, Tech Mahindra, Maruti Suzuki India, SBI, Dalmia Bharat, Federal Bank and Varun Beverages. The brokerage also likes stocks such as Ashok Leyland, Astral, Bata India, APL Apollo Tubes, HealthCare Global Enterprises, Praj Industries, CCL Products, Polycab India, and Bajaj Finance. Axis’ targets of these stocks suggest 11-33 per cent potential upsides.

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