Large caps likely to outperform broader market: Analysts
market is poised to maintain its positive momentum, with large-cap stocks expected to outperform the broader market. This trend is indicated by the Nifty vs Nifty 500 ratio reaching its lowest point. Analysts anticipate Nifty to climb towards 22,800, provided it remains above 22,300. Some of the recommended stocks include Reliance Industries, Axis Bank, ICICI Bank, SBI, Infosys, Hindalco, Jindal Steel, BEL, Tata Steel, M&M, and BHEL.
DHARMESH SHAH HEAD TECHNICALS, ICICI SECURITIES
Where is Nifty headed? Nifty managed to hold 21,800 and recorded a fresh all-time high of 22,463. The index has retraced the past five sessions’ decline in just a single session, highlighting faster retracement that makes us expect it to head towards 22,700. In the process, we expect large-caps to relatively outperform the broader market as the ratio of Nifty vs Nifty 500 has bottomed out around 1 level. Empirically, in a general election year, Nifty had bottomed out in Feb March, followed by a decent rally towards the poll outcome in each of seven instances over the past three decades. Expect Nifty to maintain the trend and head towards 23,400 by June.
What should investors do? Bouts of volatility ahead of the election should be capitalised as buying opportunity. Sectorally, BFSI is expected to lead the rally well supported by auto, capital goods, IT, and metal. On the stock front, in large-cap, we prefer RIL, Axis Bank, SBI, Infosys, Hindalco, HAL, Ambuja Cements, and M&M; while in midcaps, Jindal Steel and Power, Delhivery, Coforge,
