Mumbai
Brokerage firms predict that in the year 2020, only moderate returns will be generated from the stock market. He says the valuations of the shares have gone up significantly, the economic slowdown is expected to continue and there is limited scope for the government to provide relief on the fiscal front. These aspects can have an impact on the market. BNP Paribas has expressed an 'overweight' stance on the Sensex and estimates that the Sensex will reach 44,500 points in 2020. In addition, Maybank Kim Ang has given a forecast of 11600 points for the Nifty in 2020 with a 'neutral' stance on the stock market. According to ICICI Securities, the Nifty will be at 13,100 points by December 2020. He said that on the return front in 2020, due to the rapid growth seen in the market has come down.
BNP Paribas
According to the firm, the country's GDP growth estimate may decline further. The scope for the government to provide fiscal relief by raising spending or by reducing taxes further is also limited. Private investment is also not likely to increase soon and the asset quality pressure remains on financiers. The brokerage has maintained an overweight stance on India despite macro-economic challenges. He said that India remains attractive due to the variety of sectors to invest in and the ease in choosing shares. Private investment banks, insurance companies, and leading IT companies are among its investment picks.
Maybank Kim Ang Securities
The brokerage said India's macro outlook may look bleak, but is bullish on private banks, telecom companies, cement, power and gas utilities, software and tractor companies. He said that the Nifty could move up to 13400 points in 2020 and it could remain up to 9900 in the Bayer phase. He said that if the government takes bold steps in February 2020, then the market could gain momentum. Its investment picks include ICICI Bank, Axis Bank, Bharti Airtel, Power Grid, Ultratech, Mahanagar Gas, Dalmia Bharat, Mahindra & Mahindra, HCL Tech, Mphasis, and Tech Mahindra. It has advised Maruti Suzuki and Tata Motors to sell.
ICICI Securities
The brokerage said that absolute return for the Nifty in 2020 will be limited as stocks have gained momentum in the fourth quarter of the calendar year 2019 and have led to upside valuations. He said that caution will remain about risk assets as global banks remain attractive for gold. The brokerage has built an overweight stance on financials, consumer disclosures, and industrials. Its investment pics include Bandhan Bank, IndusInd Bank, Cholamandalam Finance, LIC Housing, HDFC Life, SBI Life, Jubilant Foodworks, Westlife, Trent, Greenply Industries, Dabur, Balkrishna Industries, TVS Motors, L&T, Engineers India, Bharti Airtel, GGL, GSPL, Dr. Lal Pathlabs, Tata Steel, Ultratech and Shree Cement are present.
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