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Markets close to a record rally. Here are the best picks to invest today

Stock markets look set to move towards a new all-time high, with analysts saying that the recent uptrend and strong sector rotation suggest bulls remain firmly in control.

As benchmarks continue to show strength, experts believe this is a good time for investors to look at sectors that are aligned with long-term growth themes rather than chasing short-term moves.

CA Tapan Doshi, SEBI Registered Research Analyst, said that the best opportunities right now lie in sectors that are part of large structural trends.

“See, I go for the mega trends. One of the mega trends, as you are aware, is defence. And there, I think, slowly and gradually, even the capacity is increasing, even the utilisation is also increasing,” he said.

According to him, the order books of leading defence companies provide strong visibility for multi-year growth. “There, I am much more focused on Mazgaon Dock, HAL or BEL. The reason I tell you, in this next 5–10 years, the order book is almost 3 times, 4 times. But now they are working on capacity and utilisation. And I think that is where things will start moving for these defence stocks.”

Apart from defence, Doshi also sees opportunities in NBFCs, especially housing finance companies. “If you want to play safe, then I think the housing finance stocks like LIC Housing or L&T Housing are good,” he said.

He added that the EMS (electronics manufacturing services) segment is another pocket of value as the correction in several names has opened up fresh entry points. “Dixon is at a good level. One can think about it. Even some of the other stocks like PG Electroplast and others are already down a lot. I think this is where the value peak may come.”

With markets expected to move higher in the coming weeks, analysts say sectors such as defence, NBFCs and EMS could offer steady opportunities for long-term investors looking to ride the next leg of growth.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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