Adani share price: Neeraj Dewan tops Diwali trades and best Adani stock to bet on
What is the trade that could be called a Diwali and Dusshera trade? What is this category or company that might surprise us?
Retail game – stocks like Arvind Fashion,
– are the type of stocks that should benefit as they were under pressure because cotton prices had risen. So, commodity prices are on the rise, but in the next festival season there will be even more footfall in malls, in stores. These are the stocks that can outperform. Going forward, they haven’t really done very well in the last six months to two or three quarters. These are the ones to watch. Even will fall into this category.
What is the best way to bet if one is keen on buying from branded retailers or fashion retailers?
I would go for a stock like
due to the improvement in the balance sheet over the Covid period. They used this period to improve their margins, pay down some debts, reduce their costs and therefore some of them will stay with them and improve margins in the future.
Also Read: Stocks to Sell on Highs and Stocks to Hold
Revenue is increasing and margins are stable, which will have an immediate effect on their bottom line. That would be my favorite pick, followed by Arvind.
“ Back to recommendation stories
From the Adani group, what are the best bets?
Among the Adani equity group, Adani Wilmar should see further improvement as its revenue growth is coming. Margins should also improve due to food inflation, which should fall even if it remains very sticky. So Adani Wilmar is a stock in this category that I like.
India is the fifth largest economy in the world and in terms of market capitalization we are among the top 10 markets, which means what happens in the world will affect us. Right now we are outperforming, but how long will this continue?
If there is to be a slowdown in the United States, interest rates will rise. Overall, things are not going very well. We can’t really go on like this and that’s why we’re not building a rally for the rest of the year, ie markets can consolidate at best. There may also be a small correction.
But stocks that are more dependent on exports such as IT, pharmaceuticals, will remain under pressure along with other sectors that are mainly export dependent. But sectors that depend on domestic consumption are growing. These sectors could continue to outperform. So there is an opportunity if corrections occur for global reasons.
There was an opportunity to invest in these stocks because the rally from 15,000 to 18,000 in autos, infrastructure, capital goods or banking was missed by many people. They will have the opportunity to invest in these kinds of stocks. Any correction would be good for these stocks.
Domestic consumption is strong and at present there is no indication that domestic consumption is being hampered by these global issues. If we get an indication that this is happening and that RBI is forced to raise interest rates after the US, then we will have an indication of some downturn here and we can be cautious; but as far as domestic consumption is concerned, there is no reason to be cautious at the moment. Looking at the global trend, we can expect some correction, I don’t see any major correction. However, export-oriented sectors will face a challenge.