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Lamps being sold in Nagpur shops ahead Diwali on Oct 21, 2016. Brokerages, analysts and experts are busy giving their picks to investors on the eve of Samvat 2073, days before the muhurat trading (special trading) this Sunday (October 30) to brighten up returns up for investors.IANS

With four days to go for "muhurat trading" (October 30), investors are being flooded by analysts on stocks that they should buy this year (Samvat 2073) to maximise their returns. The current fiscal has been fairly bullish for stock market investors, especially those who put in money in initial public offerings (IPOs).

With bond yields on the decline, there is an expectation that retail investors would gravitate towards stocks from fixed income instruments. This also has contributed to higher interest among investors to look for stocks that would deliver good returns over a 12-month horizon.

Low bond yields no longer an attraction

The yield on 6.97 percent govt bond due September 2026 stood at 6.76 percent on Monday (October 24), while the 8.27 percent 2020 bond yield dropped to 6.60 percent, according to a note by Geojit BNP Paribas.

Angel Broking said that G-sec bond yields have fallen to multi-year low after the recent repo rate cut by RBI. "With the recent interest rate cut, India's 10 year G-sec bond yields (6.72 percent) have fallen to 12-year low, (keeping aside, the few months of low yields just after Lehman Brothers crisis)," it said in its note.

Successful IPOs

Some of the listings have given reasonable returns to investors, except those like ICICI Prudential Life Insurance that listed at a discount to its issue price of Rs 334. Stocks that did well on debut and held on to gains include Endurance Technologies, Quess Corp, RBL Bank and GNA Axles, to name a few. The IPO deluge continues, with two issues — PNB Housing Finance and Varun Beverages — currently on.

Sovereign Gold Bond Scheme

Another investment option for retail investors is the sixth tranche of sovereign gold bond scheme, which opened on October 24, ends on November 2, 2016. The issue price per bond of 1 gm of gold is Rs 2,957 and the interest rate is 2.50 percent per annum, down from 2.75 percent earlier. The earlier five tranches saw investors applying for 10,155 kg of gold.

Here are some of the top picks by brokerages Angel Broking, DynamicLevels and Geojit BNP Paribas.

Stock recos for Samvat 2073
Scrip CMP (Rs)* Target Price (Rs) Remarks
Axis Bank 487  630 Angel Broking
Axis Bank 487  650 Geojit BNP Paribas
HCL Tech 792  1,000 Angel Broking
Ashok Leyland 87 116 Geojit BNP Paribas
Equitas Holdings 176 235 Angel Broking
Hero Motocorp 3,408 3,960 Geojit BNP Paribas
Infosys 1,012 1,370 Angel Broking
KEC International 127  157 Geojit BNP Paribas
Dewan Housing 316 350 Angel Broking
Larsen & Toubro 1,504** 1,636  Kotak Securities
Mahindra & Mahindra 1,327** 1,541 Kotak Securities
Allcargo Logistics 181** 215 Kotak Securities
Dish TV India 95** 110 Kotak Securities

*Current market price at around 2.45 pm on Wednesday (October 26).

**Share price as of October 20.

It is important to mention here that the recommendations were made on Tuesday (October 25) by Geojit BNP Paribas and on Monday (October 24) by Angel Broking. Therefore, the current market price (CMP) as reckoned by them is different from the CMP shown in the above chart.