Buy Ipca Laboratories in current environment: VK Sharma, HDFC Securities

In a chat with ET Now, VK Sharma, Head of Business, Private Broking & Wealth Management, HDFC Securities, shares his views on stocks and markets.

ET Now: What are you advising your clients to take advantage of this volatile environment?

VK Sharma: If you get into largecaps at this point of time, there is an overhang of institutional sales. Investors might get upset with the developments in Europe and might want to sell their portfolio here in India. So, even largecaps are not a great shelter. If investors were to pick up stocks with a good amount of traction and visibility in terms of revenue, whether midcaps or large caps, money needs to be allocated from that perspective.

Look at a stock like IPCA, which has capacity coming up in Indore and this means exports will ramp up again. Investors should look at companies like this or a company like Paper Products or they can buy stocks from the international market which is weak now. For instance, crude is coming down, so one can look at Cairn at this point of time. If crude were to resume another northbound journey, this will be a good hedge against another portfolio. These stocks are largecaps as well as smallcaps.