12 Stocks To Buy Next Week As Recommended By Top Broking Houses In India

Markets have been steady with relatively less volatility, with the Sensex near the 62,000 points mark. Stocks have been moving based on quarterly numbers. Going ahead do not expect volatility and a steady trend is likely to persist.

Quantum of rate hikes to determine market movement

Going ahead, faster than expected interest rates hikes would have a bearing on the market. For the last few days, markets have been sluggish.

"The equity indexes closed in the red after a day of volatile trading. The PSU Banks and Realty traded higher defying the trend for the day. What that markets would look forward to would be the developments Europe and the statements from leading Fed officials on the future stance of the Fed. Though price pressures have ebbed, the retail inflation numbers are too high for the comfort of the central banks, especially in the US and India. At the same time, the prominent view is that probably inflation has peaked and that central banks might still hike rates but the quantum of hikes would be more moderate. Some signs of sluggishness in growth could set in soon due to the aggressive rate action in the last few months. Markets would focus on the actual numbers to get a sense of the trajectory of inflation and official policy as well," says Joseph Thomas, Head of Research, Emkay Wealth Management.

The list of 12 stocks to buy now according to brokerage firms

Stock name	Brokerage	Call	Target price
Mahanagar Gas	Sharekhan	Buy	1010
Bharat Electronics	Prabhudas Lilladher	Buy	125
Aurobindo Pharma	Prabhudas Lilladher	Buy	550
Aster DM Healthcare	Prabhudas Lilladher	Buy	265
Apollo Tyres Ltd	Emkay Global	Buy	345
Suprajit Engineering Limited	Emkay Global	Buy	450
Home First Finance	Motilal Oswal	Buy	900
ONGC	Motilal Oswal	Buy	192
Apollo Tyres	Motilal Oswal	Buy	298
KNR Constructions	Motilal Oswal	Buy	310
L&T	Edelweiss	Buy	2247
HEG	ICICI Direct	Buy	1225

Corporate profitability on the mend

According to Motilal Oswal report, corporate profitability (CP) across the globe has witnessed a renewed vigor post COVID. This has led to a narrative that capex revival is imminent. "However, using global data for the past four decades, we present evidences of this flawed argument. Higher CP failed to lead to higher investments during the past three decades, and is unlikely to change in the 2020's decade too. In this note, we discuss that while higher investments certainly lead to higher profits, the relationship may not hold the other way round. Further, the share of China in global investments has risen to 29% in CY21, up from 20% a decade ago and just 5% at the turn of the century. Therefore, a view on China's investment cycle is very important to determine global capex recovery," the brokerage has said.

 

Disclaimer

The stocks give details related to sharp fall from 52-week highs. It should not be construed as an opportunity to buy. Greynium Information Technologies and the author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.