What to buy and what to sell in the current market turbulence
Five brokerages — Nomura, CLSA, HDFC Securities, Ambit Capital and Phillip Capital — tell investors what to avoid, and how to play the ongoing turbulence.
By Biswajit Baruah, ET Bureau |
The sensex's steep 8% fall in the past five days has made a number of stocks very attractive. Five brokerages — Nomura, CLSA, HDFC Securities, Ambit Capital and Phillip Capital — tell investors what to avoid, and how to play the ongoing turbulence.
Nomura
Strategy: Look at companies which benefit from fall in commodity prices or lower rupee
Look at stocks which have corrected enough to become fundamentally attractive and have earnings upside
Top Picks: Asian Paints, Hindustan Unilever, HCL Tech, Mahindra & Mahindra, Ultratech Cement
CLSA
Strategy: High-frequency economic indicators highlight that the slow process of economic recovery has probably started
India's relative positioning within EMs has improved
Top Picks: Infosys, Bharti Airtel, HDFC Bank, Maruti Suzuki, Sun Pharma and Zee Entertainment
Ambit
Strategy: Buy stocks with high-quality franchises with limited negative surprises in nearterm earnings estimates
Stay away from poor-quality or richly-priced cyclicals
Top Picks: ITC, Coal India, Lupin, Power Grid, IndusInd Bank, Page, PI Industries, Mahindra CIE, Bata, City Union Bank
Phillip Capital
Strategy: Companies with significant growth visibility should lead the market from current levels
Dominant themes are likely to be domestic discretionary consumption, US export plays, and beneficiaries of government spending
Top Picks: Maruti, Bharti Airtel, Jubilant FoodWorks, Dish TV, ZEEL, Voltas, Mindtree, Aurobindo Pharma, AXIS bank, LIC Housing, SKS Micro, UItratech and NCC
HDFC Sec
Strategy: Falling commodity prices are structurally helping India
Government to initiate next capex cycle, while early signs of that are already visible in its plans for roads, urban infrastructure, railways and defence
Top Picks: Axis Bank, Bank of Baroda, DCB Bank, eClerx, HCL Tech, Infosys, Bharat Forge, Maruti, Bharti Infratel, Dish TV, Idea Cellular,Bharti Infratel, Dish TV, Idea Cellular.
Nomura
Strategy: Look at companies which benefit from fall in commodity prices or lower rupee
Look at stocks which have corrected enough to become fundamentally attractive and have earnings upside
Top Picks: Asian Paints, Hindustan Unilever, HCL Tech, Mahindra & Mahindra, Ultratech Cement
CLSA
ADVERTISEMENT
Strategy: High-frequency economic indicators highlight that the slow process of economic recovery has probably started
India's relative positioning within EMs has improved
Top Picks: Infosys, Bharti Airtel, HDFC Bank, Maruti Suzuki, Sun Pharma and Zee Entertainment
Ambit
ADVERTISEMENT
Strategy: Buy stocks with high-quality franchises with limited negative surprises in nearterm earnings estimates
Stay away from poor-quality or richly-priced cyclicals
ADVERTISEMENT
Top Picks: ITC, Coal India, Lupin, Power Grid, IndusInd Bank, Page, PI Industries, Mahindra CIE, Bata, City Union Bank
Phillip Capital
Strategy: Companies with significant growth visibility should lead the market from current levels
Dominant themes are likely to be domestic discretionary consumption, US export plays, and beneficiaries of government spending
Top Picks: Maruti, Bharti Airtel, Jubilant FoodWorks, Dish TV, ZEEL, Voltas, Mindtree, Aurobindo Pharma, AXIS bank, LIC Housing, SKS Micro, UItratech and NCC
HDFC Sec
Strategy: Falling commodity prices are structurally helping India
Government to initiate next capex cycle, while early signs of that are already visible in its plans for roads, urban infrastructure, railways and defence
Top Picks: Axis Bank, Bank of Baroda, DCB Bank, eClerx, HCL Tech, Infosys, Bharat Forge, Maruti, Bharti Infratel, Dish TV, Idea Cellular,Bharti Infratel, Dish TV, Idea Cellular.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
