Stocks to watch in 2024: SBI, Zomato, Spandana Sphoorty, Oil India among Motilal's 10 top picks

Motilal Oswal has come out with a list of 10 stocks for 2024. The list included shares such as State Bank of India (SBI), Hero MotoCorp Ltd, Spandana Sphoorty Ltd, Larsen & Toubro Ltd (L&T) and Dalmia Bharat Ltd. Other stocks in the list included Oil India Ltd, Coal India Ltd, Tata Consumer Products Ltd, Zomato Ltd and Kajaria Ceramics Ltd. Motilal Oswal expects these 10 stocks to deliver up to 29 per cent returns going ahead.

"As we step into 2024, several key events next year would have an influence on market. General Lok Sabha Election in May 2024 and first budget post-election would be most important on the domestic front. While on the global front, factors such as economic growth, rate cut, inflation along with geopolitical issues would be the key drivers," Motilal Oswal Broking and Distribution said.

The brokerage believes that India remains a shining star and is expected to maintain its outperformance. It sees the market sentiment to strengthen further as the ongoing pre-election rally is likely to continue, adding that any rate cut would provide additional boost to the market.

Nifty has delivered 18 per cent return in 2023 so far. Despite the upmove, the index is trading at a 12-month forward PE ratio of 19 times, which is at a discount to its 10-year average of 20 times, Motilal Oswal said.

"Given the government’s focus approach towards long-term capex across key areas, along with expectations of rate cuts globally in 2024, Growth stocks will be in focus. We expect BFSI, Industrials, Real Estate, Auto and Consumer Discretionary to do well going forward. We believe that over the next couple of quarters, sector rotation could be an important driver along with the overall market uptrend. We also believe valuations will become an important factor in stock selection to drive outperformance in portfolios," it said.

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