Monarch Networth Capital identifies key themes and stock picks for Samvat 2083
The brokerage expects the 8th Pay Commission and the BFSI sector to drive market returns in the coming year.
Monarch Networth Capital has identified the 8th Pay Commission and the Banking, Financial Services, and Insurance (BFSI) sector as key themes for Samvat 2083, according to reports by Mint and Business Today. The brokerage noted that while Samvat 2082 saw sharp corrections in the Nifty 50 and Sensex, such movements have historically set the base for market rallies.
The brokerage expects the potential approval of the 8th Pay Commission in the 2027-28 financial year to increase the income of over 2 crore employees and pensioners. This could boost consumption in sectors such as automobiles, travel, tourism, premium beverages, and consumer durables. In the BFSI segment, Monarch highlighted credit and deposit growth above 15 per cent and asset quality at a multi-year best.
Monarch released a list of Diwali stock picks for Samvat 2083, including State Bank of India, Bharti Airtel, Bharat Electronics, HDFC Asset Management Company (HDFC AMC), and Vedanta Aluminium. Other picks include Aster DM Quality Care, Blue Star, Carborundum Universal, CCL Products (India), Indegene, Pricol, TBO Tek, and VA Tech Wabag.
The brokerage identified Carborundum Universal, CCL Products, and Vedanta Aluminium as stocks with more than 40 per cent upside potential. Vedanta Aluminium has a target price of Rs 525 per share, while Carborundum Universal has a target price of Rs 1,563. CCL Products has a target price of Rs 1,415.
Other target prices provided by the brokerage include Rs 2,680 for HDFC AMC, Rs 2,270 for Bharti Airtel, Rs 2,235 for VA Tech Wabag, Rs 2,043 for TBO Tek, Rs 1,911 for Blue Star, Rs 1,265 for State Bank of India, Rs 835 for Aster DM Quality Care, Rs 800 for Pricol, Rs 691 for Indegene, and Rs 449 for Bharat Electronics.