June stock picks: SBI, Ashok Leyland, TCS, ITC among shares that analysts picked this month

A few banking names inluding SBI, ICICI Bank and HDFC Bank; FMCG major ITC and IT giant TCS are among stocks that analysts recommended for June. The March quarter earnings season concluded on a firm note, with earnings beat-to-miss ratio standing at 1.5:1, above Street estimates, even there were some disappointments were the IT sector. Analysts said the market positioning has now slightly shifted towards banks and domestic-cyclical stocks. Domestic plays of FMCG, auto, hospitals, and industrials have slowly started outperforming the market, they noted.

In its June note, Axis Securities said it likes ICICI Bank, Maruti Suzuki India, State Bank of India (SBI),

Dalmia Bharat, Federal Bank, Varun Beverages and Ashok Leyland, among others. PNC infra, ITC, Aarti Drugs, Relaxo, Mahindra CIE, Praj Industries, CCL Products (India), Polycab India, and CreditAccess Grameen are among other stocks that the brokerage likes.

HDFC Bank, ICICI Lombard, Coromandel International are Ashika Stock Broking's top three picks for June.

"We have reviewed our past recommendations and have taken a conscious call to increase/ADD further positions in companies which appear attractive at this point of time and the ones which have strong cash flows, brand recall and healthy balance sheet. Accordingly, we have decided to increase position in HDFC Bank and ICICI Lombard General Insurance Co amongst earlier recommended stocks and have taken up fresh position in Coromandel International," it said.

In its technical note for June, ICICIdirect said it likes Kotak Mahindra Bank, Axis Bank, SBI, IDFC First Bank, L&T Finance and M&M Financial among banking and financial stocks. It likes Tata Motors, Maruti Suzuki, Eicher Motors among auto stocks; Hindustan Aeronautics, BEL, Bharat Dynamics, Coal India and ONGC among PSUs and Reliance Industries, TCS and HCL Tech among IT and telecom sectors. The brokerage also likes ITC, Marico and Titan on the FMCG sector, on technical basis.

A host of brokerages also came out with notes on preferred stocks in June. The reports are based on March quarter performance. Among large cap stocks, Nomura India likes ICICI Bank, Hindustan Unilever, Mahindra & Mahindra, Larsen & Toubro and Reliance Industries. Its least preferred largecap stocks included Maruti Suzuki, TCS, Eicher Motors and Bajaj Finance.

ITC, ICICI Bank, Bajaj Finance, HCL Technologies, Titan Company, Sun Pharma, ONGC, M&M and UltraTech Cement are among stocks that Motilal Oswal Securities prefer in the largecap pack.

Phillip Capital has upgraded stocks such as Tata Steel, Hero MotoCorp, NMDC and Sun Pharma to buy; it upgraded JSW Energy to neutral.

Also read: Reliance Industries, ITC, ICICI Bank, Maruti Suzuki among largecap shares that analysts like post Q4 results

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