Bajaj Auto, M&M & Tata Motors: AK Prabhakar of IDBI Capital Shares Insights on these 3 Stocks

Top Picks: AK Prabhakar of IDBI Capital Advises Caution in Stock Selection, Highlights Selected Sectors and Stocks Poised for Outperformance

Market Roller-Coaster Predicted for 2024: Top Picks and Insights from AK Prabhakar at IDBI Capital

SUMMARY

• Indian Equity Benchmarks Trade Higher, Fueled by Gains in Technology, Financials, and Consumer Stocks.
• Positive Momentum Extends to Broader Market: Mid- and Small-Cap Shares Gain in Indian Equities.
• Strong Sectoral Performance: 14 out of 15 NSE Sector Gauges Trade in the Green.

AK Prabhakar, Head of Capital at IDBI Capital, foresees a roller-coaster ride in the markets for the calendar year 2024.

He emphasizes the potential outperformance of selected sectors and stocks but advises caution due to the lack of valuation comfort. Prabhakar shared these insights with Business Today TV on Thursday.

When asked about his perspective on Bajaj Auto Ltd, the market expert commented, ‘The announced buyback is expected to be substantial and will likely create wealth for investors.

However, in terms of the stock price, there might be limited upside from the current levels.’ The stock was trading 1.33 per cent lower at Rs 6,896.50.

Bajaj Auto, in a filing with the BSE on Wednesday, announced its consideration of a proposal for the buyback of equity shares.

Prabhakar expressed a positive outlook on Mahindra & Mahindra (M&M) within the automobile sector, anticipating a potential return of 20-25% in the next 12-15 months. The market veteran made these remarks as M&M’s stock was observed trading 0.57% higher at Rs 1,664.95.

Highlighting Tata Motors Ltd., Prabhakar mentioned the company’s substantial total sales of almost 3 lakh crore. He sees significant positivity for Tata Motors once the company’s margins improve. Advocating a strong long-term view, Prabhakar suggested holding onto the counter. The stock witnessed a 1.61% increase, trading at Rs 793.95.

Indian equity benchmarks posted gains today, primarily driven by advancements in technology, financials, and consumer stocks. The positive momentum extended to broader market segments, with mid- and small-cap shares also in positive territory.

In the current market scenario, 14 out of the 15 sector gauges compiled by the NSE were trading positively. Notably, the Nifty IT, Nifty Financial Services, Nifty FMCG, and Nifty Consumer Durables sub-indexes exhibited strong performance, registering gains of up to 0.88%, 0.76%, 0.64%, and 0.44%, respectively. On the flip side, Nifty Media experienced a slight decline, shedding 0.21%.

In individual stock performance, Bajaj Finance emerged as the top gainer in the Nifty pack, surging by 3.63% to trade at Rs 7,653. Other notable gainers included Bajaj Finserv, Adani Ports, NTPC, and Infosys, each recording gains of up to 2.67%.

Contrarily, BPCL, Tata Steel, Hindalco, Bajaj Auto, and Dr. Reddy’s Labs emerged as the top laggards in stock performance.

The overall market breadth remained positive, with 2,377 shares advancing while 630 were declining on BSE.