Sensex at record high; here are 5 powerful stocks where you can make money

Sensex has been hitting record highs for a couple of days, however, the midcap and the smallcap stocks have not been participating in the rally. Interestingly, only three stocks - Tata Consultancy Services, HDFC Bank and Reliance Industries - contributed most to the record rally Sensex and Nifty witnessed.

Bajaj Auto is focusing on increasing local market share. Image source: Reuters

The Sensex hit its fresh high of 36947.18 in intraday trade today. The 30-share index has been hitting record highs for a couple of days, however, the midcap and the smallcap stocks have not been participating in the rally. Interestingly, only three stocks - Tata Consultancy Services, HDFC Bank and Reliance Industries - contributed most to the record rally Sensex and Nifty witnessed. Among 50 stocks on Nifty, just 10 triggered over 90 per cent rally in the index. Hence, the current record rally in the frontline indices has been highly skewed. In this scenario, Zee Business spoke to Sudip Bandyopadhyay, Group Chairman, Inditrade-JRG, who suggested following 5 powerful stocks for your portfolio:

1) Bajaj Auto

The company is focusing on increasing local market share
The company's margins and export volume growth is strong
Management has guided for 14% growth in exports in FY19
Weakness in rupee to boost export realisations and margins
The stock has fallen over 25% in last six months; valuations attractive

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2) Ashok Leyland

Volume surged 48% to 42127 units in Q1
Margins improved thanks to sale of high-margin products
The company has a target to achieve 30% export volume growth in next 5 years
Demand to see a jump of 10-20% if vehicle scrappage policy gets implemented

3) JK Lakshmi Cements

Revenues expected to surge 11% annually between FY18-20.
A 20MW power plant expected to kick off by Q4
A 7.5MW power plant was established in Q3FY18
Rs 200/tonne savings expected on fresh capacity addition
Cement prices are going up in North India

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4) Heidelberg Cements

Growth expected in volumes and realisations
Construction and govt expenditure on affordable housing to boost volumes
Rs 10-20/tonne savings expected thanks to 12MW power plant in pipeline

5) Voltas

Reduced GST rates on fridge, Washing Machine, Geyser and fans positive for the company
Voltas is a market leader with 22% market share in AC segment
Consistent growth expected in inverter and AC segments
The company is planning to launch inverter and window AC in throughout India
Strong crude oil prices expected to boost demand in Middle East countries

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