Hindustan Unilever, Maruti Suzuki India: Here's what Sunny Agrawal of SBI Securities says on these 2 stocks

Sunny Agrawal, Deputy Vice-President and Head of Fundamental Equity Research at SBI Securities, on Thursday said the domestic indices are looking rangebound and more stock specific action could be seen. The market expert picked Hindustan Unilever Ltd (HUL) as one of his top long-term picks. "One can accumulate HUL for a target price of Rs 2,800 over a period of 6-12 months. The stock price has corrected from Rs 2,800 to Rs 2,500. This is the right time to enter as the risk-reward is favorable," Agrawal told BT TV today.

The other stock which the market expert picked was from the automobile space, i.e. Maruti Suzuki India Ltd. For Maruti, Agrawal suggested a target price of Rs 12,000 over a 6-12-month duration.

"Healthy demand for its newly-launched SUV portfolio which is leading to the premiumization in the market space. The premium SUV portfolio is growing. A premiumization shift if happening for Maruti which will lead to the margin expansion. In addition, with the festive season ahead of us, the volumes of likely to pretty much healthy over the next three to six months," he stated.

The other stocks which the market expert liked from the auto and auto ancillary space were Eicher Motors Ltd and SJS Enterprises Ltd.

Meanwhile, Indian equity benchmarks slipped into the red after opening higher today, dragged by consumer goods and technology stocks. On the other hand, broader market (mid- and small-cap) shares were positive.

Foreign institutional investors (FIIs) sold shares worth Rs 354 crore of shares, while domestic institutional investors (DIIs) bought Rs 386 crore shares during the previous session, provisional exchange data showed.

Eight out of the 15 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty FMCG and Nifty IT were underperforming the NSE platform by falling as much as 0.71 per cent and 0.75 per cent, respectively. However, Nifty PSU Bank and Nifty Metal were up 1.32 per cent and 0.52 per cent.

On the stock-specific front, Tech Mahindra Ltd was the top loser in the Nifty pack as the stock cracked 3.01 per cent to trade at Rs 1,249.8. Asian Paints, Britannia, ITC and HUL fell up to 1.78 per cent.

In contrast, L&T, PowerGrid, Axis Bank, Adani Ports and Sun Pharma were among the top gainers.

The overall market breadth was positive as 2,019 shares were advancing while 1,227 were declining on BSE.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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