Our top picks for 2020 are hardly different from the compilation we made a few months ago at the turn of the Samvat and derive from underlying quality and a measure of sanity in valuations. At the cusp of 2020, Indian stock markets look more polarised than its fractious politics! It seems that incremental inflows are mostly chasing less than a dozen stocks. The reasons for this passive flight to safety are not difficult to identify. Macro growth has slipped, alarmingly some say, and is not just on a cyclical downtick. High frequency data and core indicators are mostly struggling. Policy reform has been directionally encouraging (GST, RERA, IBC, tax cuts, the push for formalisation and financialisation) but messy and inadequate. Governments efforts to spur capex are sputtering. Modi 2.0 looks like a tougher grind than Modi 1.0, say the detractors.