Investing at all-time high? Analysts see further upside in these stocks

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Amid the ongoing rally on Dalal Street, at least 130 stocks in the BSE500 index have scaled their fresh all-time high since May 2021. The benchmark equity index BSE Sensex advanced over 250 points intraday and also touched a record intraday high of 52,641 on June 11. Likewise, the broader NSE Nifty advanced also hit its new high of 15,835.

Analysts believe that the ongoing bull run will continue and investors should lap up quality stocks in case of any correction. Data available with Ace Equity showed that stocks like Cipla, Wipro, Titan Company, SRF, Polycab India, Pidilite Industries, Bajaj Finance, Marico, Ambuja Cements, Astral, Gujarat Gas, Garware Technical Fibres, Jubilant FoodsWorks, FirstSource Solutions, ICICI Prudential Life Insurance and Balrampur Chini are hovering at their record high levels.

Shares of these companies have advanced between 60%-550% since the lows of March 2020. Market watchers are bullish on some of the stocks in the list. For instance, ICICI Securities has a ‘Buy’ call on Polycab India with a target price of Rs 2,025. Likewise, Sharekhan is positive on Balrampur Chini with a target price of Rs 425.

“Balrampur Chini Mills one of the key beneficiaries of reducing cyclicality in the sugar industry. A higher contribution from the distillery division will help margins and PAT (profit after tax) clock a CAGR of 19% over FY2021-24,” Sharekhan said.

Regular inflows Sustained liquidity in the market has been keeping the momentum upbeat on Dalal Street. The low deposit rates are one of the major reasons why regular inflows keep coming into the market. There is no reason to believe that deposit rates will go up in the near term, and hence stock markets will continue to receive liquidity support in the meantime. Considering the present condition, YES Securities believes that Sensex can hit 60,000-mark by December.

On the other hand, Sanjiv Bhasin, director, IIFL Securities advised investor to zero in on cyclicals, infrastructure, midcap banks, consumer electricals and discretionary companies.

Data further highlighted that players like Mindtree, Divi’s Laboratories, Aarti Industries, Asian Paints, Tata Consumer Products, ACC, Tata Coffee, SKF India, Tata Investment Corporation, PI Industries, Coforge, Bajaj Finserv, Solar Industries, Balkrishna Industries, Max Financial Services, State Bank of India, Power Grid, Oberoi Realty, Atul Ltd, Alkem Laboratories, UPL and ICICI Securities stood among other players in the list which are hovering at their record high levels. Shares of these companies have also advanced between 40%-550% during the past 15 months.

Bhasin of IIFL is positive on State Bank of India with a target price of Rs 600, while Motilal Oswal has a ‘Buy’ call on Tata Consumer Products with a price target of Rs 775.