Sanjiv Bhasin, executive vice president (markets & corporate affairs) at IIFL, said that Nifty may fall to 8,400 next week if the US Fed's comment on the pace of future rate hike disappoints market as bond yields globally are rising. A rate hike in the US will trigger selling in equities globally, he added. Mr Bhasin sees 20 per cent chance of a rate hike in Fed's two-day meeting, which ends later today.
Stock Talk
Avoid Jubilant FoodWorks: The stock trades at more than 50 times forward earnings. The departure of CEO Ajay Kaul will send wrong signal in the short term. However, this could be a short-term negative because the stock has already corrected. It will take some time for the dynamics to change.
Buy NBCC: Its earnings has surprised on the positive side. Execution of the large Sarojini Nagar, New Delhi, complex has not yet started. This is the stock which has earnings visibility for next three years. The stock is in for a re-rating. We have a year-end target of Rs 320 on NBCC.
Buy Phoenix Lamps: We have a "buy" call on the stock as it is going to be merged with Suprajit Engineering. Fair value of the stock should be Rs 190 compared to current price of around Rs 160. It will be a good vertical to the existing business, which Suprajit Engineering has on the OEM (Original Equipment Manufacturer) side. We have a target of Rs 190 on the stock.
Buy Cosmo Films: The stock trades at around 8 times its forward earnings, which is not expensive. Uflex, which has less market shares compared to Cosmo Films, is trading at 12 times forward earnings. Cosmo Films will benefit from the implementation of GST. Management of the company is very bullish on growth. Its US business is also doing very well. We have a target of Rs 450.
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