An investment theme and top stock picks from Porinju Veliyath for calendar 2017

NEW DELHI: Calendar 2017 promises to be way different from the year gone by, as two key aspects are going to change in the domestic economy: the way we pay for goods and services and the taxes we pay on them.

Some market veterans see an early opportunity for equity investors in
businesses that support a cashless environment and the ones that are likely to benefit from the demonetisation drive.

Ace investor Porinju Veliyath, for one, said it would be the biggest theme for investors in calendar year 2017.

The MD & Portfolio Manager at Equity Intelligence India, said he was bullish on companies affected by the cash ban as well as those which are likely to benefit from the move.

The domestic equity market is at an inflection point, along with the economy, but uncertainties are likely to haunt the market going forward.

In an interview with ETNow, Porinju said the Nifty50 would see a reasonable bull run in 2017 and investors should use any dips to buy stocks.

The uncertain period created in the market by demonetisation appears to be over and organised sectors are likely to benefit most from the same, Porinju said.

He said retail investors in equities should pick up momentum in 2017, and Indian households are going to emerge the biggest investors in equities.

Top stocks bets:

Porinju is bullish on select infrastructure stocks such as J Kumar Infra, and Sunil Hitech. He said investors should keep railway stocks such as Texmaco and Titagarh Wagons on their watch list.

He continued to hold Talwalkars, as he sees no impact on the business from the recent economic developments. Investors can also look at smaller well-managed companies such as Saksoft, Datamatics, Bombay Burmah Trading Corporation, HSIL, TCI, Orient Cement with a long-term view.