By Indian stocks are in focus on Monday after the country’s Ministry of Statistics and Programme Implementation (MoSPI) said inflation eased further to 5.22% in December.
Analysts, in comparison, had called for 5.30%.
As inflation continues to lose steam and creates more leeway for the Reserve Bank of India (RBI) to consider rate cuts, Malcolm Dorson of Global X ETFs recommends buying the following 3 Indian stocks.
Shriram Finance Ltd (NSE: SHRIRAMFIN)
Shriram Finance has been in a sharp downtrend since late September. Still, Malcolm Dorson dubs it a top pick for 2025.
The non-banking lender caters mostly to individuals and smaller businesses.
About 95% of the loans it issues are collateralized while 90% are “against sustainable earning assets.”
The Global X ETFs portfolio manager likes SHRIRAMFIN for its scale.
Other reasons he cited for his bullish view on the stock include the company’s massive user base of more than 10 million.
Shriram Finance stock currently pays a healthy dividend yield of 1.81% which makes it even more attractive for the income investors.
On average, analysts who cover this company see a 20% upside in its shares at writing.
General Insurance Corporation of India (NSE: GICRE)
General Insurance Corporation of India has nearly 20% over the past month but Malcolm Dorson sees a swift recovery moving forward.
The portfolio manager recommends buying GICRE on the recent weakness as “it’s a way to invest in the premiums paid by policyholders before claims are paid out, [which] creates opportunities to drive accretive growth.”
General Insurance Corporation of India also stands to benefit from tax reductions on life and health insurance premiums, according to the Global X ETFs expert.
Much like Shriram Finance, GICRE is an attractive pick for long-term investors as it pays a dividend yield of 2.45% at writing.
Analysts currently see a 25% upside on average in shares of General Insurance Corporation of India.
Reliance Industries Ltd (NSE: RELIANCE)
Reliance Industries has been a disappointment for investors over the past six months but the story moving forward could be a different one, according to Malcolm Dorson.
He recommends loading up on Reliance stock following the sell-off as Mukesh Ambani’s company is aggressively spending on a “massive digital backbone to support longer-term monetization of mobile and digital data consumers.”
The portfolio manager likes Reliance Industries also because it offers ample exposure to multiple industries, including energy, entertainment, petrochemicals, and telecommunications.
The conglomerate is committed to increasing its retail and digital business revenue and EBITDA by an impressive 100% over the next four years.
Analysts currently see an upside of 28% (on average) in shares of Reliance Industries which pays a dividend yield of 0.40% at writing.
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