Outcome of assembly polls in March, especially in the key state of Uttar Pradesh (UP) – seen as a semi-final to the general elections scheduled for 2019 – reinforced hope of wider reforms. Earlier in the year, a good monsoon and the passage of the goods and services tax (GST) bill provided triggers for an upside.
On the other hand, they remained resilient to events that were perceived to be negative for the financial markets – such as demonetisation, Donald Trump’s surprise victory in the US Presidential election and rate hike by the US Federal Reserve.
Also Read: GST implementation will be a market rally disruptor
Here are a few stocks compiled from recent research reports that leading research houses and brokerages recommend at the current levels.
Banks and pharma remain key overweights. Remain underweight on IT Services and Consumer staples.
Top picks include Axis Bank, Aurobindo Pharma, Bharat Electronics, Cipla, HDFC Bank, Larsen & Toubro (L&T), Mahindra & Mahindra (M&M), Power Grid, State Bank of India (SBI), Tata Motors, Apollo Hospitals, Container Corporation, Crompton Consumer, Dish TV, Emami, Glenmark Pharma, GSPL, Indraprastha Gas and PI Industries
Also Read: FMCG, healthcare sectors beat market return over 10yr period: Ambit Capital
Least preferred stocks: Ashok Leyland, Titan and United Spirits;
Sell rating: Hero MotoCorp, TTK Prestige, ACC, Havells and Jubilant FoodWorks;
Buy rating: ITC, HUL, Britannia, PVR, Voltas, HDFC Bank and ICICI Bank.
Tata Motors, ICICI Bank, ITC, SBI, RBL Limited, Britannia, Colgate, Crompton Consumer, UltraTech, L&T, Hindalco, JSPL, Bharti Airtel, IOC and JK Cements
Buy Ideas: Aurobindo Pharma, Bajaj Finance, Coromandel International, Delta Corp, Dhanuka Agritech, Emami, Future Lifestyle Fashion, Godrej Consumer Products, Hero MotoCorp, Hindalco, ICICI Bank, Insecticides India, IOC, MOIL, Orient Refractories, Somany Ceramics, Sterling Tools and Sun TV.
Sell Ideas: ACC, Havells India, Mahindra Finance, Pidilite Industries and TVS Motors
 "Stocks to buy and sell in FY18")