The markets closed in green amid choppy trades. Indian markets outperformed the Asian peers. On the global front, Asian markets were trading lower, Shanghai is down 5%.

S Ranganathan of LKP Shares is optimistic on IVRCL and Simplex Infrastructure. He feels that these companies have the ability to grow their topline as well as bottom-line at rates which are far higher than Sensex companies.

Ranganathan’s picks:

On IVRCL, Simplex Infrastructure:

As we approach the earnings season, we remain quite optimistic on quality midcaps varied across sectors. In sectors like construction and infrastructure we remain quite optimistic on stocks like IVRCL, Simplex infrastructure because these are the companies which have the ability to grow their topline as well as bottom-line at rates which are far higher than Sensex companies, meaning these are companies which are slated to grow their earnings anywhere between 30-35% and since the forward valuations are quite attractive, much lower compared to the Sensex companies we are quite optimistic on their prospects going forward.

On Yes Bank:

It is heartening for investors to see good set of numbers from Yes Bank especially given the state of the industry where a lot of headwinds are there as regards to mark to market losses that these companies could have to make as per new guidelines. In out view it’s too premature to make a judgment on this by looking at Yes Bank results but definitely it’s good for Yes Bank stakeholders; we believe the stock would stabilize now and try to consolidate from hereon.

But as a sector we do believe that some of the PSU banks have had taken some kind of PLR reduction in the Q4, so there could be some kind of pressure on the PSU banks as far as the Q4 numbers are concerned

On Jubilant Organosys, Divis Lab, Dishman, Orchid Chemicals & Sasun:

We continue to remain positive on the contract manufacturing space where there are companies like Jubilant Organics, Divis Lab and Dishman and even stock like Sasun which has corrected quite steeply after poor set of numbers last  year. So that is the segment we remain optimistic.

Orchid Chemicals is a stock which has been flying around in the last couple of weeks for reasons which are well known but we typically like the contract manufacturing space and some of the multinationals drug firms as far as the pharma pack is concerned

Disclosures:

We and our clients would have a beneficial interest in most of the stocks that we would have discussed today.

Anil Manghnani, Modern Shares & Stock Brokers feels that the market’s broader range is probably narrowed down to 4,600 to 4,900 and now probably even getting narrower. “I think it is a good thing if we can trade for a few more sessions or maybe just trade in a narrower range what happens is the volatility gets lesser and lesser and once that happens then you get more confidence in the markets, more traders come back to the markets albeit the volumes are still very low. But it brings back some confidence if we do not see 500 points up one day 400 points down days and if you can have two-three days of same trend whether up or down it brings some sort of confidence back.”