The announcement of Goods and Services Tax (GST) reforms by Prime Minister Narendra Modi is likely to boost the stock market sentiment this week.
Stock market analysts have suggested that the GST reforms announcement by PM Modi would boost consumer growth and market sentiment amid uncertainty from Trump tariffs.
Sensex surged around 360.25 points in past five trading sessions, whereas Nifty 50 was up around 116 points to 24,631 points. While the stock market started the week on a muted note, it made strong recovery in the second half of the week shortened by public holidays.Vi
PM Modi Announces GST Reforms
On the occasion of Independence Day, PM Modi announced GST reforms during his speech at Red Fort. He said that the central government has proposed GST reforms and the next gen GST is likely to be announced in October.
The Centre has proposed to remove the existing GST slabs and keep only two GST slabs of 5% and 18%. Nearly 90% of the items in existing GST slab of 18% may be shifted to the 5% slab, reported news agency PTI.
“GST mentioned by Prime minister Modi in its Independence Day speech is positive for the market . He taking about give relaxation from GST in this festival season. He also mentioned many other plans for the growth of the economy.
This speech is all about macro level growth of India and this will lead to the market with positive momentum’s,” noted Anuj Gupta of HDFC Securities. Here are the five stocks to watch for gains next week, according to Gupta.
5 Stocks To Buy
Bharat Electronics Limited, Vishal Mega Mart, Infosys, Bajaj Housing Finance Limited, and State Bank of India are the top five stocks mentioned by Gupta for the week. These stocks are likely to carry forward the last week’s momentum and may offer a chance to investors to make gains.
BEL | Buy Around Rs 370-375
Bharat Electronics Limited (BEL) shares closed 1.02% lower at Rs 384.85 per share on BSE on Thursday with a market capitalisation of Rs 2,81,316.84 crore. The stock valuation has declined by around 0.77% in a week.
“Technically the trend of BEL is looking positive. We are expecting it may further rise to test 400 to 420 levels. One can buy around 370 to 375 levels with the stoploss of 355 for the Target if 400 to 420 levels,” noted Gupta.
Vishal Mega Mart | Buy Around Rs 135-140
Vishal Mega Mart (VMM) shares surged around 1.49% and closed at Rs 146.5 per share on BSE on Thursday with a market capitalisation of Rs 68,289.08 crore. “It is bullish trend as chart formed higher top higher bottom formations. On can buy this stock around 135 to 140 with the stoploss of 120 for the target of 165 to 170 levels.”
Infosys | Buy Around Rs 1,410-1,420
Infosys shares jumped around 1.5% to close at Rs 1,447 per share with a market capitalisation of Rs 6,01,310.19 crore. “We saw a lower levels recovery in the stock. One can buy INFY around 1410 to 1420 levels with the stoploss of 1375 for the target of 1480 to 1490 levels,” stated Gupta.
State Bank of India | Buy Around Rs 810-815
State Bank of India shares ended the week in green at Rs 826.7 per share with a market capitalisation of Rs 7,63,095.16 crore. SBI was also among the top 10 BSE stocks which ended the week with higher market capitalisation.
“As per the technical breakout it seems that we could seen further appreciation in the prices. One can buy around 810-815 levels with the stoploss of 788 levels for the target of 850 to 860 levels.”
Bajaj Housing Finance Limited | Buy Around Rs 108-110
Bajaj Housing Finance Limited (BajajHFL) shares rallied around 3.75% to close at Rs 112.65 per share on BSE on Thursday with a market capitalisation of Rs 93,863.75 crore. According to Gupta, ” the stock is trading at over sold zone and expecting recovery from the over sold zone. One can buy this stock around 108 to 110 levels with the stoploss of 102 for the target of 120 to 125 levels.”
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