7 Mahurat picks from ICICI Securities

With equity indices already flirting with life-time highs, our equity strategy will be to buy on any declines in the markets as we are cautiously optimistic as the velocity of markets is surely surprising and one which is fuelled by liquidity, mainly in terms of FII inflows.

At 20000+ index levels, the broader markets are trading at 18.7x and 16.2x their FY11E and FY12E earnings, respectively. Though the valuations on a FY11E basis have breached the rich valuation zone, our sense is that market expectations have rolled over the valuations on FY12E earnings. As we are writing this, we are in the midst of the Q2FY11 earnings season. Till now, Corporate India has met the expectations of the markets.

Following are 7 Mahurat picks from ICICI Securities:

1) Dish TV (Target Price: 70)

2) IDBI Bank (Target Price: 206)

3) IDFC (Target Price: 240)

4) Glenmark Pharma (Target Price: 413)

5) Maruti Suzuki (Target Price: 1,783)

6) Reliance Industries (RIL) (Target Price: 1,260)

7) Tata Consultancy Services (TCS) (Target Price: 1,210)