The Indian stock market could find it challenging to maintain its upward momentum given the economic slowdown and rising fears of coronavirus in China.
In such a scenario, it would be prudent sticking to quality companies with a track record of decent returns over a period of time.Of about 3,000 actively-traded stocks on Indian bourses, only 56 have given a consistent return of more than 10 per cent in each of the past three years.
Of these 56 stocks, 22 have market capitalisation of more than Rs 1,000 crore.
Analysts say chances of investors getting good returns from these stocks in the current situation still remain high.Shares of Bajaj Finance, which has given a compounded annual return of 45 per cent in the last three years, have surged 9 per cent so far this year.
Asian Paints, with compounded annual return of 23 per cent in the past three years, has been maintaining a healthy dividend payout of 46 per cent.Similarly, stocks such as Nestle India, Bajaj Finserv, Pidilite Industries, Berger Paints India, Divis Laboratories, Abbott India, Adani Enterprises, Jubilant FoodWorks and Bata India among others were able to ride various business cycles in the last three years due to their inherent strengths - market leadership, technology advantage, good distribution network or brand recall.BCCL - Non CopyrightConsidering any or a combination of these strengths, it is reasonable to assume that these companies will continue to give decent returns in the current year, said G Chokkalingam, founder, Equinomics Research - Advisory.