• Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
Thursday, August 11, 2022
No Result
View All Result
SUBSCRIBE
The Outlooker
27 °c
Delhi
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
  • Home
  • Opinion
  • Politics
  • World
  • Business
  • Science & Tech
No Result
View All Result
The Outlooker
No Result
View All Result
  • National
  • Politics
  • Opinion
  • Business
  • Science
  • World
  • Health
Home Business

Check Goldman Sachs’ top bets for next year: RIL, SBI, other recovery plays and alpha ideas

by The Outlooker Web Desk
November 16, 2020
in Business
0
1.8k
SHARES
12.9k
VIEWS
Share on FacebookShare on Twitter

Along with Nifty, analysts at Goldman Sachs also see a positive set up for Asian equities where they expect 18% total USD returns in 2021.

Goldman Sachs said last week that it expects India’s Nifty 50 to hit 14,100 points by the end of the next year 2021, raising India to ‘overweight’ among asian equity markets. The move came months after Goldman Sachs’ bearish commentary that said that Nifty’s rally was not the end of the bear market that the world entered in March. Along with Nifty, analysts at Goldman Sachs also see a positive set up for Asian equities where they expect 18% total USD returns in 2021. But the question remains how should investors plan their trades to capitalise on such gains?

“We classify our implementation ideas for next year under three broad categories,” Goldman Sachs said in the research note. The categories include structural themes such as large cap digital economy stocks, recovery plays including defensives and cylicals, and targeted alpha ideas which include upstream, downstream along with renewables.

Structural themes:

Goldman Sachs mentions two plays under structural themes. The first is the Digital Dozen play which includes 12 large and liquid structurally high growth tech stocks in the Asian region. “These digital economy stocks exhibit strong future growth prospects and superior profitability drivers. While these stocks trade at higher valuations relative to the region, we think the lower for longer rate environment will continue to support multiples for these long duration stocks,” they added. Under this category, out of the 12 stocks that Goldman Sachs has picked, there is only one India listed firm — Reliance Industries Ltd.

The second play under the structural theme is China specific. Here Goldman Sachs has picked  stocks aligned with China’s long-term “Dual Circulation” strategy.

Recovery plays:

Here, the research note says global cyclicals vs defensives is a theme that Goldman Sachs is playing. Along with that, stocks where a strong earnings recovery is being eyed are also being picked. “At the micro level, as we expect earnings to recover strongly next year and into 2022, we think stocks where earnings recovery is relatively underpriced could potentially perform well next year,” the note said. Under this theme, Goldman Sachs has picked three Indian stocks — State Bank of India, Adani Ports & SEZ, and ACC. 

Further, another theme where investors can take targeted cyclical exposure focusing on sectors that could benefit from the ongoing global economic recovery and also gain from the expected catalyst of a vaccine has also been advised. Here, stocks such as ICICI Bank, State Bank of India, BPCL, Bandhan Bank, Motherson Sumi Systems, and HPCL have been highlighted.

Targeted alpha ideas

Under this theme, the first play that Goldman Sachs discusses is the margin divergence between upstream and downstream sectors. “ We think the margins for upstream industries will benefit more from rising commodity prices and inflation than the consumer-facing downstream industries,” they said. Here, ONGC, has been named as a ‘Buy’ rated stock. Indian Oil is one of the ‘Sell’ or ‘Neutral’ rated stocks under this play. With renewable energy likely to be in focus under Joe Biden’s presidency, Goldman Sachs believes that renewables will likely gain more investor attention and engagement in the coming year. Adani Green Energy is the only one India listed stock under this theme. 

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

The Outlooker is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

The Outlooker Web Desk

The Outlooker Web Desk

Next Post
Nitish Kumar shouldn’t have opted for CM post; with eroding status, he will be shadow of what he was before

Nitish Kumar shouldn’t have opted for CM post; with eroding status, he will be shadow of what he was before

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

3 Lashkar Terrorists Shot Dead In Jammu And Kashmir’s Budgam
National

3 Lashkar Terrorists Shot Dead In Jammu And Kashmir’s Budgam

August 10, 2022
Justice Uday Umesh Lalit Appointed As 49th Chief Justice Of India
National

Justice Uday Umesh Lalit Appointed As 49th Chief Justice Of India

August 10, 2022
Pawar accuses BJP of finishing off regional allies, backs Nitish Kumar for snapping ties with saffron party
Politics

Pawar accuses BJP of finishing off regional allies, backs Nitish Kumar for snapping ties with saffron party

August 10, 2022
Sworn in as CM for eighth time, Nitish tells BJP to 'worry' about 2024 LS polls
Politics

Sworn in as CM for eighth time, Nitish tells BJP to 'worry' about 2024 LS polls

August 10, 2022

Connect with us

No Result
View All Result

Archives

  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020

Category

  • Artistic
  • Business
  • Crypto
  • Design
  • Entertainment
  • Fashion
  • featured
  • Food
  • Gaming
  • Health
  • Human
  • Lifestyle
  • Movie
  • Music
  • National
  • Opinion
  • Politics
  • Science
  • Spaces
  • Sports
  • Tech
  • Travel
  • Uncategorized
  • World

Recent Posts

  • 3 Lashkar Terrorists Shot Dead In Jammu And Kashmir’s Budgam
  • Justice Uday Umesh Lalit Appointed As 49th Chief Justice Of India
  • Pawar accuses BJP of finishing off regional allies, backs Nitish Kumar for snapping ties with saffron party

About Us

The Outlooker

The Outlooker is your source of authentic, hand-picked news, stories, analysis from India & the World.

  • Terms Of Service
  • Privacy Policy
  • About us
  • Submit your story
  • Contact

© 2019-2021 The Outlooker. All rights reserved.

No Result
View All Result
  • Home
  • Politics
  • World
  • Business
  • Science
  • National
  • Entertainment
  • Gaming
  • Movie
  • Music
  • Sports
  • Fashion
  • Lifestyle
  • Travel
  • Tech
  • Health
  • Food

© 2019-2021 The Outlooker. All rights reserved.