How to trade & which stocks to buy in 2017?

Here are brokerage firms' views on how to trade market and which stocks to pick in 2017. CitiImproving visibility of India earnings post demonetisation could lead to a bright spot in H1CY17 for Indian equities. Key events to watch out in CY17 are: progress on GST, timing of earnings normalisation and inflation trajectory and rates. Stock pick strategy  (a) Lower weight on financials slightly; add Shriram Transport Finance (SHTF) post 35 percent correction from high; (b) add Hero Moto post recent upgrade (c) reduce underweight to IT services marginally given dollar appreciation

Bank of America Merrill Lynch Indian equity can match beat bonds December-end Sensex target of 29000 Lower stock prices offer increased margin of safety. Market earnings growth should improve Stock pick strategy Prefer banks, rural plays (two-wheeler and tractors), large caps (midcaps expensive)

Morgan Stanley Equity markets looking attractive and poised for double digit returns in 2017 Equities likely to deliver 15 percent returns in rupee terms in 2017 Growth is in a U-shaped recovery albeit hurt in the near term by demonetisation Stock pick strategy Underweight defensives, buy rate sensitives Add JSW Steel   , Shriram City Union Finance   and Sun Pharma   Base case for December 2017 Sensex is target 30000

JP Morgan Earnings growth is expected to be 16 percent for FY17 and 21 percent for FY18 See better rural as well as urban demand Expect 25-50 basis points rate cuts by RBI over next 6-9 months Top Picks – HDFC Bank   , YES BANK   , M&M   , Vedanta   and DLF   Stocks to avoid – Bharti Airtel   , ONGC   and BHEL

Investment & trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.

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