Indian market clocked fresh record highs in no time and many investors felt left out as the indices raced ahead in a short duration. But, the rally may not be over and investors should use every dip to get into quality stocks.
So should one bet on stocks which are likely to benefit from the Budget 2020 or count on stocks which are consistent performers in the last 10 years?
There are 12 Nifty stocks that have given strong CAGR in the past 10-year period. These include Bajaj Finance, Eicher Motors, Bajaj Finserv, Asian Paints, HUL, TCS, and UPL, according to a Motilal Oswal report.
If someone is looking for stable returns then the given list of stocks is a good buy even at current levels even though the valuation might appear steep. Most stocks fall under the bracket of ‘quality’ and high earnings growth companies and thus command a higher premium, say experts.
“The stocks mentioned are all high earnings growth companies and also considered as wealth-generating stocks. In the last two years the valuations of many stocks from the list have further scaled up and gone to extremely high levels not seen in the last many years,” Rusmik Oza, Sr. VP (Head of Fundamental Research-PCG), Kotak Securities told Moneycontrol.
“If the economy does not recover in 2020 then they could still outperform in spite of steep valuations. Some of the stocks from the list which are not trading at peak or rich valuations could be safe bets for 2020,” he said.
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