Year 2012 has been spectacular for the Indian market. The Sensex has rallied around 25 percent. Going into 2013, experts have high hopes on the stock market.
Moneycontrol.com got AK Prabhakar, senior VP-equity research, Anand Rathi to answer the stock queries you sent us on our Facebook page as part of KYI (Know Your Investment). Check out his comments.
Ratheesh Baskaran: Can you tell us your top picks for 2013?
A K Prabhakar: Thermax, Bharat Forge, Speciality Restaurants, HSIL,Reliance Capital, SKS Microfinance, Bayer Cropscience, Cadila, Coromandel International and Raymond.
Arvind Singh: What is your call on State Bank of India (SBI)?
A K Prabhakar: We prefer private banks than PSU banks. SBI, being the largest PSU banks, still has its overhang of asset quality issues. Therefore, we like Karur Vysya Bank better than SBI.
Nitin Agarwal: What about Reliance Industries (RI)?
A K Prabhakar: In the short-term to medium-term, the pressure is likely to continue. But post FY14 the stock can become outperformer. So, if your view is for the long-term, you may hold.
Bhushan Mulay: Can I buy Bharti Airtel now?
A K Prabhakar: We are cautious on telecom as a whole sector mainly due to the regulatory issues. We prefer Idea to Bharti Airtel mainly it being an India specific player.
Chirag CJ Patel: What is your call on ICICI Bank?
A K Prabhakar: The stock is attractive. With a two-year perspective, it should outperform as it has been growing continously and has also kept a check on the asset quality issue.
Saravanan Rg: Can you give us your top picks for the short-term?
A K Prabhakar: Karur Vysys Bank, Tata Chemicals, Bajaj Corp, Natco Pharma and JK Cement.
Nikhil Gupta: What is your view on Tata Global for this month?
A K Prabhakar: Stock looks weak as Rs 150 on lower side is possible.
Neeraj Aggarwal: I have bought Infosys at Rs 2,356. What should I do now?
A K Prabhakar: Infosys, if your view is for more than a year, then you may hold. The short-term pressure will conitnue on uncertain global markets (US/ Europe), expectations of muted Q3 results (Jan 11,2013) and guidance downgrade. But one can accumulate the stock at lower levels as well for longer term perspective.
Rahul Chaudhary: What is your six-month target on Tata Motors DVR?
A K Prabhakar: You may see Rs 195 levels in Tata Motors DVR.
Jugal Kishore: What is your view on FMCG stocks?
A K Prabhakar: FMCG stocks have been outperforming for long in the market. But, at these levels, the valuations look stretched, so, being stock specific is important.We like Bajaj Corp, Emami, Colgate and Proctar & Gamble.
Bruno Dsouza: What about Hexaware?
A K Prabhakar: Hexaware has corrected from Rs 140 to Rs 84 levels, some more correction can make it more attractive.
Kishore Tirumala: I have 300 shares of L&T Finance Holdings. Can I hold for long-term?
A K Prabhakar: You can hold L&T Finance for the long-term as it has strong parentage. It has been a fastest growing NBFC, 50% CAGR for the last three years.
Bruno Dsouza: What is your call on Provogue (India)?
A K Prabhakar: There are btter stocks in retail sector. We like Arvind, Shopper Stop and Raymond.
Jani Mayur: I have 30 shares of Mahindra and Mahindra 30 at Rs 945. What should I do?
A K Prabhakar: You may hold the stock as it is one of the best play in auto business with multiple interest.
Dr.jayesh Gaygol: What is your short-term view on HSIL?
A K Prabhakar: It is one the largest sanitaryware manufacturer with strong brand presence and distribution network. It is also consolidating its performance in subsidiary with expansion plans very well on track. We like the stock for longer term perspective with a target price of Rs 180. In the short-term, we may see levels like Rs 152 and Rs 165 in the stock.