stock market

Stock Talk: Ambareesh Baliga on Tata Motors, Nestle, Himatsingka Seide

File Photo: Ambareesh Baliga

File Photo: Ambareesh Baliga

Market analyst Ambareesh Baliga expects Indian stock markets to face a lot of resistance going ahead. Crossing 8,600 would be difficult for the Nifty because the logjam in Parliament means reforms could take a back seat, he added. Corporate results have been mixed and there is nothing much to look forward to in terms of macro numbers, Mr Baliga said. (Watch)

Stock talk:

Tata Motors: The stock has corrected nearly 35 per cent from its recent high. Most of the bad news has been priced in. If the stock falls by Rs 20 to Rs 30 on earnings, then it is an opportunity to buy the stock. There’s greater chance for Tata Motors to go back to Rs 500 to Rs 550 levels than Maruti Suzuki hitting Rs 6,000 levels.

Nestle: Recent developments have been positive, but at current levels the stock looks expensive. Even if Maggi comes back on shelf, it will take some time for the popular noodles to start generating volumes. Nestle’s expenditure on PR and advertisements are likely to shoot up to win back the confidence of buyers. I would look at buying Nestle around Rs 5,800 to Rs 6,000 levels for long term.

EIL: Order flows should improve in the next couple of months because the oil sector (OMC) is doing extremely well.

Himatsingka Seide (textile company): I have been recommending the stock for the last two-two and half years. It has started performing since last month and half. There is decent amount of upside in the stock.

Tata Steel: The company has sold some of their assets in Europe. A rebound in domestic demand is also likely over the next 12 months. One should look at the stock for a 12-15 months perspective.

L&T Finance Holdings: The stock has not performed over the last year. It can move up to levels of Rs 95 – Rs 100 over next 6-8 months given its diversified exposure to sectors.

Dr Reddy’s Lab, Lupin, Sun Pharma: These three stocks are a must in portfolios. Investors should use dips to accumulate these stocks.

NTPC: There is nothing better than NTPC to play the power sector. It is a cash rich company, one of the largest in the sector with nearly 60 per cent capacity. The stock is under pressure because of the proposed divestment.

Ceat, Apollo Tyres, MRF: These stocks have run up in the past reflecting the falling raw material prices, but going forward retail prices may come down because of pressure from Chinese imports and dumping. At the same time, there would be internal competition because of which the retail prices would come down. Normally, there is a time lag between raw material prices coming down and the same thing getting reflected in the retail prices. Current margins of tyre companies would not last for too long.

stock market – Bing News

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