INSUBCONTINENT EXCLUSIVE:
Where are you shopping this festive season Both e-commerce websites and Dalal Street are offering jaw-dropping prices
So, the choice is between buying products that may not last long and picking up a few stocks that may throw up big returns in a few months
from now.
Market experts say the Indian market is largely done with the current phase of correction, though volatility may remain high till
the end of January at the least
Arun Thukral, Managing Director and CEO, Axis Securities, is advising investors to do some shopping on Dalal Street
nearly 9 per cent, whereas the BSE Midcap and Smallcap indices have tumbled 20 per cent and 28 per cent, respectively, till October
the factors, including currency depreciation and high oil price which were creating a problem, have somewhat reversed, which is good news
However, some of the measures taken by the government and RBI seem to be having an effect to help stabilise the system for now
There is a possibility of some relief and a bounceback
However, things are likely to stay volatile over the next three months and we are getting to a stage where valuation may look more
the strong selloff seen since August-end, valuation of Nifty has come to 24.65, which is very close to its five-year moving average of
22.82.
Equity benchmarks Sensex and Nifty have corrected over 10 per cent from their respective all-time high levels hit in August
In the BSE500 pack, 282 stocks were trading below their industry P/E as of October end
Investors should consult financial advisers and read about the company as well as industry before taking any position
In the BSE500 index, Bata India, Mahindra Holidays, VA Tech Wabag, Just Dial, Ajanta Pharma, Natco Pharma, Granules India,
Colgate-Palmolive, Ashok Leyland, DCM Shriram, DHFL, Rallis India and Kaveri Seed are among the stocks whose price-to-earnings ratio have
fallen below industry averages.
Market mavens believes corporate earnings growth is also recovering after a long hiatus, and that will be
the driving force for the market going forward, and that will also guide the market trajectory and returns.
Sampath Reddy, Chief Investment
Officer of Bajaj Allianz Life Insurance Company said corporate earnings are showing signs of recovery after muted growth in last few
events lined up over the next three months will keep the market volatile
Market watchers will be watching the outcome of assembly elections in India, which could give some idea about the shape of things to come at
the general elections due early next year
two-three months, we would like to see some movement in the NBFC space as well, or probably in the overall credit market
We may probably hear a little about Brexit
We think valuations have corrected meaningfully out there
They are not cheap, but they are still lot more reasonable than what they were a year ago or maybe 18 months back
We are trying to nibble these opportunities
Some of our own existing ideas have, of course, taken a beating
We have taken the blow on the chin, but they are looking a lot more attractive now
Securities has recommended Ashok Leyland, Bajaj Finance, HUL, ICICI Bank, LT Infotech, Minda Industries, Mold-Tek Packaging, Reliance
Industries, Steel Strip Wheels, Titan and Trident.
HDFC Securities recommends Everest Industries, Parag Milk, Cummins, Apollo Hospitals,
Ashok Leyland, Asian Paints, Britannia Industries, Cummins India, Godrej Consumer Products, Maruti Suzuki India and Voltas are among the
top picks of Religare Broking.
