These factors will be in the driving seat of the stock market in the new year, you can bet on these 10 stocks!

The year 2023 is about to end. Now there are only few days left for stock market trading this year. After today, the market is closed for the next two days due to the weekend. This will be followed by the Christmas holiday on Monday. Next week will be just four days of business and the new year will begin before the market opens the week after that.

Many records were set this year.

The year 2023 has proved to be the best year for the stock market. The market faced many ups and downs during the year. However, the year is ending on a high note for the market. In the final days of 2023, the market is trading near its record high. Earlier, the domestic market had set several unprecedented records during the year.

These factors contributed.

Nifty has crossed 21,500 points for the first time during the year 2023 and Sensex has crossed 71,000 mark. According to Motilal Oswal Broking & Distribution, several factors helped the market this year. The market was supported by better performance on the economy front. The GDP growth rate in the first half of the current fiscal year was 7.7 percent, mainly due to the strong performance of the manufacturing and investment sectors. Because of this, the Reserve Bank of India raised its GDP estimate for FY24 by 7%. GST receipts, monthly automobile sales, power demand, PMI data also registered strong growth. The first half was also excellent in terms of corporate earnings, with Nifty companies showing a 30% year-on-year increase in net profit.

The market benefited from two sides

With BJP’s landslide victory in the state elections of Rajasthan, Madhya Pradesh and Chhattisgarh, investors are confident of political stability after the 2024 Lok Sabha elections. This year, Indian market conditions remained positive on both macroeconomic and policy fronts, which benefited the market. According to Motilal Oswal, due to this, in 2023, the market capitalization of BSE-listed companies will cross $4 trillion and overtake the NSE Hong Kong Stock Exchange as the world’s largest market capitalization. will become the seventh largest exchange of

Predictions for the coming days

Motilal Oswal has also expressed hopes for the new year. The domestic brokerage firm says the upcoming Lok Sabha elections and Budget 2024 are the key factors influencing the market. On the domestic front, the market will also be affected by the interest rate cut by the Reserve Bank. There may be some challenge on the inflation front due to the recent Suez crisis. Global economic growth, falling interest rates, inflation and geopolitical issues will be major factors.

How will the market be in the new year?

Motilal Oswal says market sentiment will strengthen as the pre-election rally is likely to continue. Any rate cut would provide additional stimulus to the market. With the focus on long-term capital spending in key government sectors and expectations of a global rate cut in 2024, the focus will be on growth stocks. BFSI, industrials, real estate, auto and consumer discretionary sectors will continue to perform well. We believe that over the next few quarters, regional rotation could also be a key driver of overall market momentum.

Motilal Oswal’s Top 10 Picks for New Year:

Company

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EPS

PE (x)

(INR Crore)

(INR)

(INR)

(%)

Fiscal year24E

Fiscal year25E

Fiscal year24E

Fiscal year25E

SBI

5,66,891

635

700

10%

78

90

8

7

Hero Moto

76,497

3827

4480

17%

201

213

19

18

Vibrational energy

7,311

1028

1200

17%

71

93

14

11

L&T

4,74,183

3,373

3,660

9%

98

121

35

28

Dalmia India

40,792

2175

2800

29%

45

64

48

34

Tata Consumer

90,792

977

1,110

14%

15

19

67

50

Coal India

2,17,945

354

380

7%

41

41

9

9

Zomato

1,09,801

126

135

7%

0

1

451

123

Oil India

41,527

383

410

7%

54

58

7

7

Kjaria

21,648

1359

1580

16%

29

36

47

37

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