Kolkata: Domestic brokerage firm Antique Stock Broking ha come up with stock recommendations following the India-US trade deal. As evident on Feb 3, the small announcement by US president Donald Trump, triggered euphoria in the equity markets of India. Antique has stated the deal has the potential to change the mood in the near term by eliminating the uncertainty that was sitting heavy on Dalal Street for more than year. According to reports, FIIs invested significantly in Indian stocks on Feb 3 after a long time. Let’s have a look at the sectors and stocks that Antique has picked.
Sectors and stocks picked by Antique
Antique thinks among the sectors that can benefit directly and indirectly from the deal are banking stocks such as ICICI Bank, HDFC Bank, State Bank of India, Karur Vysya Bank and City Union Bank. These can benefit from enhanced credit outlook and capital flows.
Once visa issues and hiring curbs are removed, IT sector stocks such as Infosys, Wipro and HCL Technologies can benefit. Persistent Systems and Mphasis, which are IT stocks in the mid-cap space can also benefit.
Antique is also bullish in the pharmaceutical sector and has said that firms such as Cipla and Dr Reddy’s Laboratories can benefit as trade become more smooth.
In the agro-chemical sector, firms to benefit include UPL, SRF and Sharda Cropchem.
In the industrials sector, stocks such as Bharat Heavy Electricals, Cummins India, Apar Industries and GE Vernova Transmission and Distribution could benefit a lot in the power and infrastructure-linked segments.
The brokerage is also bullish on Hindustan Aeronautics, Bharat Dynamics and PTC Industries. It says these firms can benefit from stronger manufacturing and export prospects in the defence sector.
In the textile sector which was greatly stressed by Trump’s tariffs, firms such as KPR Mill, Welspun Living and Arvind can gain a lot since they have a lot of export focus.
In the power utility sector, stocks such as Adani Power and JSW Energy have been mentioned.
Among the large cap stocks, Antique mentioned HPCL and HAL set to have big upside — 56% and 46% potential respectively. Adani Power can deliver 39% upside and Mazagon Dock Shipbuilders can pack a 40% gain. Antique has also mentioned stocks such as ICICI Bank, HDFC Asset Management, Solar Industries and HDFC Life Insurance with upside potential of 24%-30%.
In the midcap space, the brokerage has also focused on Radico Khaitan (upside potential of 42%), Siemens Energy India (40% potential) and BHEL (35% potential), Hitachi Energy India (31% potential) and Nippon Life India Asset Management and Max Life Insurance (25-27% potential).
Among the small cap stocks, Antique has named Bajel Projects (73% potential), Sobha and Aditya Birla Real Estate (about 70% potential), Studds Accessories, Allied Blenders and Distillers, SAMHI Hotels (50% potential), Chalet Hotels and DOMS Industries (about 40% potential).
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