Buy ‘ITC’ for the long term: Rahul Shah, MOFSL

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The benchmark indices were volatile, trading on either side of flat-line in the afternoon on Monday. While defensive stocks from the pharma, IT, and FMCG space supported the indices, losses in financials capped gains.  The headline S&P BSE Sensex was at 52,961 level, down 15 points while the broader Nifty50 held above the 15,850-mark at 15,854, down 2 points. Rahul Shah of Motilal Oswal Financial Services spoke to Money9 and shared insights on the market scenario.

He said, “The broader picture of markets still looks positive, we have seen a sector rotation despite the consolidation. The earnings so far have been largely positive as against the expectation of a hit on results due to the second wave. We can expect markets to move up again after this current consolidation”

On the big earnings so far, he believes that results have been in line so far. IT numbers were in some cases better than expectations, he believes.

“ITC is one of the cheapest stocks in the FMCG pack compared to HUL , Nestle, P&G. This protects the downside and gives a lot of scope for upside. While the short term return may be little but over the long term, I’m very positive. The earnings were better than expectations and I believe the risk reward is favourable. One can buy for a 2-3 year horizon at current levels”

Stock Recommendations

JSPL: Buy | Target: 550 | 12 months

HDFC Bank | Buy | Target: 1850 | 12 months

#MarketMeter | Muted trade continues in markets, broader markets outperform. Watch @SakshiBatra18 speak to Rahul Shah of @MotilalOswalLtd #LIVE about what should be the investor strategy today. #StockMarketsIndia #Stocks #Sensex #Nifty https://t.co/M3O54TyTqT

— Money9 (@Money9Live) July 26, 2021