Listen In: Stocks that may deliver up to 50% return in a year | The Economic


Hi there, Good Morning. Welcome to ETMarkets Morning, the show about money, business and markets. I am Nikhil Agarwal. Let’s start with the headlines first.

– WHO to decide next week on Covaxin approval
– Moody’s upgrades India’s ratings outlook to Stable from Negative
– Banks, NBFCs report jump in advances
– HDFC Bank eyes strategic investor in NBFC arm

Now lemme give you a quick glance on the state of the markets.

Dalal Street is likely to have a negative start this morning. Nifty futures on the Singapore Exchange traded 35 points lower at 8:10 hours (IST). Asian stock markets mostly opened higher Wednesday as investors rushed to buy back after a sell-off in the previous session and following a rebound on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan was almost flat, down 0.02 per cent.

Elsewhere, the yield on 10-year Treasuries advanced about two basis points to 1.55%. The dollar hovered close to its highs for the year in choppy trade on Wednesday as investors’ focus turned to US jobs data and to a likely rate hike in New Zealand. US oil prices rose for a fifth day on Wednesday to their highest since 2014 amid global concerns about energy supply on signs of tightness in crude, natural gas and coal markets. Brent crude added 0.15 per cent, or 12 cents $82.68 a barrel after rising to a three-year high in the previous session.


That said, here’s what is making news.

Rich valuations have been a worry for stock investors, but analysts claim there is still steam left in various pockets of the market. In the NSE500 index, 180 stocks could return between 10% and 50% over the next 12 months, according to Bloomberg’s consensus estimates of companies covered by at least five analysts. These include SAIL, NCC, Kalpataru Power, Jindal Steel, Tata Steel, NMDC, Aurobindo Pharma, UPL, Mahanagar Gas and Gujarat State Petronet, among others. Steel stocks – SAIL, Jindal Steel, and Tata Steel – could return 40%, 32%, and 31%, respectively from the current levels, according to estimates. Some analysts said concerns over steel prices being under pressure are overdone.

Existing shareholders of Bharti Airtel could consider subscribing to the company’s rights issue, said analysts. The company’s Rs 21,000-crore rights issue opened on Tuesday and will close on October 21. Bharti’s rights entitlements (REs) listed on Tuesday were locked at the 40% upper circuit of Rs 204.50 on the BSE. The REs opened at Rs 191, a 31% premium over its intrinsic value of Rs 146.10. Intrinsic value is the difference between the price of fully paid shares and the rights issue price. Bharti has priced the rights issue at Rs 535 per share. Shares of Bharti Airtel ended at Rs 699 on Tuesday.

Investors have increased their exposure to defensive stocks amid rising volatility and hawkish signals from global central banks. The weight of defensive sectors in the Nifty 50 index rose by 314 basis points over the past eight months to 37.4% in September 2021. It is just 27 basis points lower than the March 2020 level before the pandemic. In the pre-Covid period, the defensive sector weight was around 32%. Defensive sectors include IT, consumer goods, pharma, telecom, utility and insurance. Their weight has remained above 37% for the past four months. In the past three month, these sectors contributed nearly 42% to the total Nifty gain of 1,687 points.


The National Bank for Agriculture & Rural Development (Nabard), Small Industries Development Bank of India (Sidbi) and IFCI are likely to take a hit as the three financial institutions together have about Rs 2,000 crore of exposure to Srei Group, the Kolkata-based financier that has been put into administration on Monday by the central bank. IFCI is a lender to the core sector and infrastructure finance companies. Nabard is the refinance bank for the country’s agriculture needs, while Sidbi primarily supports small and medium enterprises. Lenders and bond investors at Srei might not be able to recover more than a third of the total liabilities, estimated to be in the vicinity of Rs 31,000 crore, as on March 31.


NOW Before I go, here is a look at some of the stocks buzzing this morning…

Textiles to auto ancillary conglomerate Raymond’s real estate arm, Raymond Realty, has forayed into development of commercial properties and is also planning to leverage its brand along with financial strength to expand the realty business through joint developments.

Future Retail Ltd on Tuesday said it has terminated its two-year-old franchise agreement with 7-Eleven Inc to open and manage the global eponymous brand store as a master franchisee in India.

Bharti Airtel and Vodafone Idea (Vi) may have to pay less than Rs 2,000 crore each as one time spectrum charge (OTSC), or substantially lower than what they have accounted for currently, if the government decides to not appeal against an earlier telecom tribunal verdict, a senior government official said.

Months after shelving plans to list its non-banking subsidiary, HDB Financial Services, HDFC Bank has initiated a formal process to rope in a strategic investor, ET reported.


Do also check out over two dozen stock recommendations for today’s trade from top analysts on

That’s it for now. Stay with us for all the market news through the day. Happy investing!


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