Market Update

Monday, 20 May 2019

Share Market Tips- As exit polls suggest thumping victory for Modi, experts pick these 10 stocks



Share Market Tips- As exit polls suggest thumping victory for Modi, experts pick these 10 stocks

Exit polls suggest continuity of a stable government at the Centre—a positive sign for long-term investors. Any dips ahead should be used as a buying opportunity. According to an exit poll conducted by Network 18-IPSOS, BJP-led NDA is likely to gather over 336 seats. Republic-CVoter sees BJP hitting 287 while Congress gaining about 128 seats. Experts feel that anything above 270 for BJP on May 23 will be positive for markets. Although some of the good news is already discounted by the market; hence, profit booking is likely, once the initial euphoria wanes. We believe TCS will outperform industry growth rate and will continue to gain market share. The management is quite confident of posting double-digit growth in the foreseeable future.
However, the margin may remain under pressure in the near-term. There are some macro concerns in the US, which will put some pressure on the stock in the near future, Thus, other than purchases on credit cards of banks, there are very few other competitors that Bajaj Finance sees in the consumer durables business, which provides it with pricing power.
It is also diversifying successfully into personal loans, overdraft facility that can be seen as a natural extension of consumer finance. We recommend a buy with a price target of Rs 3,500.
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