Prabhudas Lilladher : Fundamental Check

Prabhudas Lilladher remain positive on sectors such as Auto, Banking, Cement and Engineering.Their top large-cap picks are Maruti, M&M, ICICI Bank, Larsen & Toubro, Relaince Communications and Grasim.

According to the brokerage house, the markets have moved up and are now trading at 18.8x for the Sensex and 17.7x for the Nifty on FY07 estimates. "Despite seemingly rich valuations, we believe sustaining liquidity (on the back of steady interest rates) and strong earnings growth (29.6% in the previous quarter) will keep the positive momentum in India going over the medium to long-term."

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