Diwali is round the corner, the market might just be missing the plot twist in India’s growth story. Between the last Diwali and this upcoming one, several global and national economic developments shaped India’s economic trajectory. The combination of lower inflation, improved consumption backed by GST and tax cuts, coupled with rising capex and enhanced system liquidity, SMIFS believe the Indian economy is poised for a very strong bounce over the next 6-12 months, reflecting in the profitability numbers as well, resulting in a strong rerating for most stocks. Valuations at the current level also seem pretty reasonable. Here are top picks from SMIFS for the Samvat 2082:

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Bharat Heavy Electricals | Buy | Target Price: Rs 320 | Upside: 38%

BHEL is well positioned to benefit

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