In last few days stock trades & volumes have picked up substantially in the market, institutional investors are buying stocks, foreign institutional investors (FIIs) have bought 1,600 crore in the last five days.
Kotak Institutional Equities team has put out a list of top 15 stocks to buy now for 2009 - 2010, which are not penny stocks but are reasonably large cap names and stock buying in these counters can give returns of 50-100% over the next 18 months.
Most analysts believe that domestic participation has picked up quite significantly and so people may trade back into the market as there are lots of values and accumulate stocks.
Following are Sanjeev Prasad, ED, Kotak Institutional Equities' fabulous 15 picks
Punjab National Bank (PNB): Valuations are attractive and gross non-performing loans (NPLs) are seen at 5% for FY11
HDFC Bank: It is a large cap stock with attractive valuations
Axis Bank: Valuations are cheaper than that of HDFC Bank and see high return on equity (ROE)
United Phosphorous: See fair value of the company and in a year�s time it would be Rs140-150 per share
Crompton Greaves: See seven times prcie to earnings (PE) on 2010 numbers. It is a pretty good buy, despite whatever has happened on the investment in the power
India Infoline: The brokerage stock will see upside in market volumes
Tata Steel: See FY10 earnings per share (EPS) at Rs 55
Indiabulls Real Estate: The occupancy levels in the properties are going higher and there will be a re-rating of the stock to some extent.
Reliance Infrastructure: See clarity in Q4 on the usage of cash available with the company
JP Associates: The company will benefit from higher cash flows from its cement business
Biocon: Although valuations are cheap and the stock has fallen a bit, but by 2010 things will start improving.
CHECKOUT: Best Stocks To Buy In 2010 - Let's Share Ideas
Other fab picks mentioned in the report were:
DLF
Hindustan Zinc
Tata Power
Federal Bank
However, ICICI Bank is suffering from bad news and thus more clarity is expected on that front so that has not been added to the list. Nonetheless, the company can be re-rated and can be perceived as a stock to be bought in future.
Source: Moneycontrol
