Sensex, Nifty set to make new all-time highs by Dec-end; buy these stocks to bet on festive demand | INTERVIEW

The second-quarter earnings have been better-than-expected, so far, due to work from home, says Sanjiv Bhasin, Director at IIFL Securities Ltd. In an interview with Surbhi Jain of Financial Express Online, Bhasin says that select sectors such as IT, private banks, consumption, among others have beaten estimates with robust performance in the July-September quarter. Bhasin is quite bullish on Indian share markets and expects BSE Sensex to hit 42500 as record high by the year-end. For the Nifty 50 index, he sees support at 10800 and resistance at 12400. In order to beat the stock market volatility, Bhasin advises investors to stay invested and consider systematic investment plans (SIP).

Q1. What is your outlook for the market given uncertainties around the Covid-19 vaccine and US Presidential elections?

India stands out as corporate results till now have beaten estimates with all-round performance from IT, private banks, cement, steel & consumption. Global second wave and US Presidential election make India more attractive as weaker US dollar and upcoming festive season spending to spur growth not to mention falling COVID-19 cases locally seems to be the icing on the cake.

Q2. How have been July-September quarter earnings so far?

So far, July-September quarter results have been better-than-expected as work from home and lower costs have aided bottom lines with IT, banks, pharma and cement leading from the front.

Q3. How should investors bet on festive season demand?

Consumption seems to be in the pink of health whether discretionary or electricals, as demand push is seeing a shortage of supply. Buy select auto, consumer electricals and durable stocks such as Havells India, Ashok Leyland, Godrej Consumer and  Dabur India.

Q4. Where do you see BSE Sensex and Nifty 50 by December-end? What are the key support and resistance levels?

By the year-end, BSE Sensex will be at 42500 and the broader Nifty 50 index at 12700. The support for Nifty 50 will be at 10800 while 12400 will act as resistance.

Q5. Ahead of Diwali, which sectors and stocks in your opinion look to gain?

Ahead of Diwali, sectors such as cement, reality, construction and banks may gain. While stocks like UltraTech Cement, Godrej Properties Ltd, L&T and Federal Bank, look good.

Q6. Amid share market volatility, what should be investors’ strategy?

Systematic Investment Plans (SIP) in mutual funds or above mentioned stocks as SIP. But, stay invested as the lowest cost of money for the next 3 years means equities will be the best asset class.