Kotak flags over-valuation in Indian markets, makes portfolio changes

Colgate-Palmolive (India)

29/01/2024 09:06

** Struggling to find new ideas given the high level of
over-valuations in general in the market, say analysts led by
Sanjeev Prasad of Kotak Institutional Equities
    ** Brokerage makes changes in its recommended large-cap,
model portfolio, removes overvalued stocks
    ** "Hardly any stocks in our coverage universe that look
undervalued on a fundamental basis other than financials
sector," says Kotak
    ** Removes Tech Mahindra  TEML.NS  from its portfolio and
increases weight on HCLTech  HCLT.NS , Infosys  INFY.NS  and
Tata Consultancy Services  TCS.NS  
    ** Removes Colgate-Palmolive India  COLG.NS  and raises
weight on Dabur  DABU.NS , Hindustan Unilever  HLL.NS  and
United Spirits  UNSP.NS  
    ** Says quarterly results of banks have been
better-than-expected, while IT earnings were "mediocre"
    ** Expects interim budget on Feb. 1 to give guidance on
government capex for fiscal 2025, with likely higher allocations
for railway and road sectors
    ** Investment stocks have jumped on strong capex cycle, that
now needs backing of solid results, adds Kotak
    
    

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))