Avinash Gorakshakar, Director of Research at ProfitMart Securities, on Wednesday said sectors such as automobile and real estate would be benefitted significantly going forward. The market selected Anant Raj Ltd from the real estate sector as one of his top long-term picks. "The real estate business is growing steadily. It has also invested a lot in data centre business. Earnings growth over the next two years will be solid," Gorakshakar told Business Today TV. One can buy at current levels for a target price of around Rs 350, he suggested. The stock was last seen 0.72 per cent up at Rs 250.70.
The market veteran also liked Tata Motors Ltd. "Increased interest in electric vehicles (EVs) and Jaguar Land Rover's (JLR's) performance will benefit the company. In addition, Tata Technologies IPO may unlock a lot of value for Tata Motors. Also, Tata Motors DVRs (Differential Voting Rights) have been included in the MSCI index, which could be a short-term trigger for the stock. For Tata Motors, one can expect a target price of Rs 750 over the next 12-15 months," Gorakshakar stated. Tata Motors shares were up 1.06 per cent at Rs 660.
For the unversed, Tata Tech initial public offering (IPO) will open on November 22. It will be the first IPO from the Tata Group since the successful launch of Tata Consultancy Services (TCS) in 2004. "Price band of the initial share sale could be between Rs 500 and Rs 600. Post listing, the value unlocking will be quite significant. Tata Motors will continue to hold it as a subsidiary," the market expert mentioned.
The company is expected to announce the official price band closer to the IPO date.
Meanwhile, Indian equity benchmarks traded higher today, led by gains across all sectors. Broader market (mid- and small-cap) shares were also positive, helped by positive global cues.
All the 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty IT and Nifty Metal were outperforming the NSE platform by rising as much as 1.03 per cent, 1.63 per cent and 1.50 per cent, respectively.
On the stock-specific front, Eicher Motors Ltd was the top gainer in the Nifty pack as the stock jumped 4.41 per cent to trade at Rs 3,806.25. Hindalco, Tech Mahindra, ONGC and LTI Mindtree gained up to 3.50 per cent.
In contrast, Power Grid, IndusInd Bank, Sun Pharma and Britannia Industries were among the top laggards.
The overall market breadth was positive as 2,064 shares were advancing while 411 were declining on BSE.
(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
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