Prabhudas Lilladher released the model portfolio!
The ongoing decline in the stock market is expected to stop by the end of this month. Stability may return to the market by the end of the fourth quarter of the current financial year, january to March. This is the statement of PL capital of financial company Prabhudas Lilladher.
FPI will return to India!
PL capital has released its latest india Strategy Report. This report says that the market may continue to be volatile in the near term, but stability may return to the market by the end of the fourth quarter of FY 2024-25. According to the report, due to the jump in capital expenditure, foreign portfolio investment may return to India. Due to the revival of consumer demand along with the reduction in income tax rates, foreign investors' confidence in the indian market will increase. Due to this, Prabhudas Lilladher has given a target of 25,689 Nifty in the next 12 months.
Improvement in demand-consumption
PL capital has said in its report that domestic demand will see recovery. The major reason for this is the decline in food inflation, which has come down from 10.9 percent in october 2024 to 6 percent now. RBI has cut the repo rate by 25 basis points, which will increase the availability of cash in the market in the next 3-6 months due to OMO. In the budget, the income tax rate for taxpayers has been reduced and Rs 1 lakh crore has been handed over to them, which will increase consumption. The economy will benefit from religious tourism. Also, there has been a 17 percent jump in the capital expenditure allocation of the government, which also includes allocation to PSUs and states.
Model portfolio of PL Capital
In such a situation, PL capital has released its model portfolio for investors. PL capital is overweight on consumer related stocks due to the expectation of increase in demand due to reduction in tax rate, reduction in inflation, reduction in interest rate. Also, it has increased its weight on bank and healthcare related stocks. PL capital has included Cipla and Astral Poly in its model portfolio. Also, it is bullish on maruti Suzuki, ICICI bank, mahindra BANK' target='_blank' title='kotak mahindra bank-Latest Updates, Photos, Videos are a click away, CLICK NOW'>kotak mahindra bank, ABB, Bharat Electronics, Interglobe Aviation i.e. Indigo, ITC and Bharti Airtel. PL capital has reduced its weight in L&T, Titan, HUL, reliance Industries, HCL Tech, and hdfc AMC. PL capital also likes the stock of Chalet Hotels Ingersoll Rand and Keynes Tech.
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