Expect small, mid cap stocks to rise 18 to 20 percent in the new year

Mumbai, Ta. 20 December 2019, Friday

HDFC Securities estimates the NSE's Nifty 3 Index to rise to a high of 5 by December 2. Which is projected to increase by 8% from current levels However, small, mid cap stocks have shown an estimated return of 3 to 5 percent.

Along with the elimination of the Long Term Capital Gains Tax (LTCG) in the next central budget, the creation of a bed bank for stress-stressed assets of banks and NBFCs, export incentives expected to be created with the employment incentives of the units created by HDFC Securities, released today. Expect this in the Teens and Tests of Maturity presentation report Andajo-described period.

"The Nifty has seen rapid growth in the past one year, with the new calendar year 1 being expected by December 1, with a projected growth of 1, by the end of March 1," said Dhirj Reilly, managing director and CEO of HDFC Securities. . Can be viewed.

During the year 1 to 5, Nifty EPS saw a CAGR growth of 5.5%. This is a 7% growth over the next seven years. Nifty is currently trading at EPS 5.1 times of calendar year 7, with limited scope for growth. Revenue growth has been mostly lower than expected in the July to September quarter,

These positive surprises have led to a rise in net profit following a reduction in corporate tax rates. However, it will take a few quarters as revenue growth accelerates. GDP is expected to boom in the next quarter. He expects some changes in taxation, such as a reduction in direct taxes, to increase consumption.

In addition, Dheeraj Reilly said that he believes the non-performing assets (NPA) solution in the banking system will be a major factor in Year 7. In the financial year 1, there are consolidated loans of Rs 1.8 lakh crore loans by five scheduled commercial banks.

Improving the asset quality of banks will see a turnaround in the current financial year, even though the release of funds from NCLT will increase the profitability of banks through the recovery of loans. Of course, some of the challenges he cited were inflation in the key challenges, with inflation at 8 to 8 percent, and excessive capacity in power and real estate, the president of unemployment.

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