2017 Stock Market Outlook Of Major Brokerage Houses In A Glimpse

Here are brokerage firms' views on how to trade market and which stocks to pick in 2017.

Citi

·         Improving visibility of India earnings post demonetisation could lead to a bright spot in H1CY17 for Indian equities.

·         Key events to watch out in CY17 are: progress on GST, timing of earnings normalisation and inflation trajectory and rates.

·         Stock pick strategy  (a) Lower weight on financials slightly; add Shriram Transport Finance (SHTF) post 35 percent correction from high; (b) add Hero Moto post recent upgrade (c) reduce underweight to IT services marginally given dollar appreciation

Bank of America Merrill Lynch

·         Indian equity can match beat bonds

·         December-end Sensex target of 29000

·         Lower stock prices offer increased margin of safety.

·         Market earnings growth should improve

·         Stock pick strategy - Prefer banks, rural plays (two-wheeler and tractors), large caps (midcaps expensive)

Morgan Stanley

·         Equity markets looking attractive and poised for double digit returns in 2017

·         Equities likely to deliver 15 percent returns in rupee terms in 2017

·         Growth is in a U-shaped recovery albeit hurt in the near term by demonetisation

·         Stock pick strategy - Underweight defensives, buy rate sensitives Add JSW Steel , Shriram City Union Finance   and Sun Pharma  

·         Base case for December 2017 Sensex is target 30000

JP Morgan 

·         Earnings growth is expected to be 16 percent for FY17 and 21 percent for FY18

·         See better rural as well as urban demand

·         Expect 25-50 basis points rate cuts by RBI over next 6-9 months

·         Top Picks – HDFC Bank   , YES BANK   , M&M   , Vedanta   and DLF   Stocks to avoid – Bharti Airtel   , ONGC   and BHEL    

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Value of Rakesh Jhunjhunwala's stock holdings in 2016

             The value of Rakesh Jhunjhunwala's stock holdings has remained flat this year as heavyweights of his portfolio weighed down the performance.

According to data taken from Bloomberg, the value of his personal holdings has witnessed a marginal rise of 2% to Rs 6,514 crore. The analysis only considers companies where Jhunjhunwala owns stake of more than 1% in his personal capacity.

Besides, that the ace investor also holds stake in various companies through his firm RARE Enterprises and in addition his wife Rekha Jhunjhunwala too has equity holdings.

Most of Jhunjhunwala's long term bets such Aurobindo Pharma, Lupin and Titan have turned out to damp squibs in 2016. The two pharma companies have lost close to 20% during the year, while Titan too is down 9%. Meanwhile, the benchmark Sensex is up just 1% so far this year.

Industry observers say Jhunjhunwala is now focusing on buying a large chunk of equity in smaller companies like Geometric, Autoline Industries, Mandhana Retail and Delta Corporation. There are around eight companies in which Jhunjhunwala holds more than 10% stake.

Recently, Jhunjhunwala announced he had acquired 12.7% stake in The Mandhana Retail Ventures Limited, which retailer for Salman Khan's Being Human apparel brand.

 Last year, Jhunjhunwala was seen investing heavily in all three listed aviation companies -InterGlobe Aviation, Jet Airways and SpiceJet.