Exclusive: Nirmal Bang CEO Rahul Arora Plans Fork Linked Trade in H1 2022 – These Stocks He Picks for the Best Returns
In an exclusive conversation with Zee Business Editor-in-Chief Anil Singhvi, Nirmal Bang Institutional Equities Managing Director Rahul Arora lists the positives for the coming year 2022 and also mentions key Nifty50 levels as well as some favorite stocks from his bucket.
Emphasizing that it is possible to reach the lowest level of the index, the CEO of Nirmal Bang explains that the market would see a trade linked to a range of 1000 to 1500 points which falls between the levels of 16 500 to 18,500.
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He adds that the market could oscillate between 16500-17000 on the downside and 18500-19000 on the upside in the first six months of 2022. According to experts, from April to July 2022, interest rates will start to rise. to lower. amount that constitutes a risk for the market, underlines Arora.
In addition, the shrinking US markets and rising interest rates globally will also have an impact on the market in the coming year. do not come in mentions of the CEO.
Regarding the new variant of covid-19 – Omicron, Arora mentions, there is no need to worry much as the impact would be minimal and there is no threat.
On the back of the unlock theme, Nirmal Bang CEO lists Inox Leisure, Indian Hotels and ICICI Pru Life are likely to give outstanding feedback. He says the first stock would do well because people are flocking to theaters with major releases planned, for example Ranveer Singh starrer 83.
In addition, with the improvement in occupancy and operation already in place, the hotel industry is also expected to do well in 2022. In this regard, Arora chooses Indian Hotels as its preferred choice.
Third, in the list, ICICI Pru Life is already enjoying a 30-35% discount from its industry peers and has the potential to grow further, says the CEO of Nirmal Bang.
According to Arora, the multiple PE of these stocks may be inflated now, but over the next two or three quarters the market will see its normalization in the future.
Likewise, in the automotive segment, CEO of Nirmal Bang said Ashok Leyland will do well and his BPA will drop to 2 to 2.5 times as the commercial vehicle cycle picks up. While, despite the base effect reduced, companies in the tractor category such as Ashok Leyland and M&M would experience growth of 15-18%.
In the category of automotive auxiliaries, Jamna Auto also has huge potential, as Tata Motors and Ashok Leyland are the two important companies from which the automotive auxiliary company derives its business. While the ROE and ROCE of equities are around 34 to 35%, âexplains the CEO of Nirmal Bang.
The other stocks as a best bet from different sectors that Arora selects are HCL Tech and Tech Mahindra from the IT space; Sundaram Finance and Shriram Transport Finance in the Finance category.
While Ramco Cement, PNC Infra and KNR Constructions are also the best bet that Arora has chosen in the infra segment. Chemical companies such as Navin Fluorine and Sumitomo Chemicals; FMCG stocks such as HUL and Britannia are also Arora’s best bet for the coming year 2022.