After a significant decline in the last six months, the Indian stock market is poised for a major turnaround. With the US-India trade deal on the horizon, experts predict a potential re-rating of the market to 29,200 in the next calendar year, driven by trade policy clarity and improving liquidity.
Key Drivers of the Market Turnaround
The US-India deal is expected to unlock India's relative re-rating versus Asian peers, making it an attractive investment destination. Additionally, the end of US quantitative tightening and the beginning of rate cuts may lead to a reversal of FPI outflows, which have been a major contributor to India's underperformance in the past two years.
Top 5 Stocks to Buy for Long-Term Gains
Experts have identified five stocks that are well-positioned for long-term growth. These include:
- Bank of India: Buy between ₹132-140, target price: ₹180, stop loss: ₹115
- Marico: Buy between ₹710-740, target price: ₹880, stop loss: ₹638
- Sun Pharma: Buy between ₹1750-1790, target price: ₹2180, stop loss: ₹1540
- TCS: Buy between ₹3120-3220, target price: ₹3775, stop loss: ₹2840
- UltraTech Cement: Buy between ₹11200-11700, target price: ₹14500, stop loss: ₹9970
Investment Strategy
With the potential for a market turnaround, it's essential to have a well-thought-out investment strategy. Experts advise investors to focus on stocks with strong fundamentals, a positive outlook, and attractive valuations.
Remember, this is a perspective, not a prediction. It's crucial to do your own research and consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.