Market succumbed to various fears like poor coporate earnings, rising crude oil prices, globar trade war and lost 2.4% in the month of May after a 5% gain posted in April. Overall, BSE 200 benchmark returns have now come down to 9% in the past 1 year. Q4 earnings of Nifty 50 companies were down by ~9 % yoy mainly due to disappointment from the banks and PSUs. This coupled with Karnataka Election jitters and fear of global trade war triggered by Trump tariff threat further weakened the market sentiments. On the positive side, consumption driven
companies continue to post good results led by buoyant demand. Some of our top
consumption picks like M&M, Bluestar, Safari Industries and Parag Milk Foods continue to report robust earnings. Overall, our top picks have generated a total return of x% since inception (i.e. October 2015), an outperformance of x% over BSE 200.
We recommend our top picks as the good bets to utilize this opportunity which are offering healthy returns in the next 1 year. All of our top picks are backed by sound
business model and are likely to do well in coming years. We remain overweight on consumption discretionary theme with stocks like Safari Industries, Blue Star and Parag Milk Foods. Overall, our top picks have generated a total return of % since inception (i.e. October 2015), an outperformance of % over BSE 200.
