Investors should prefer tried-and-tested large cap stocks

26/giu/2018 13:08:48 nita Contatta l'autore

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Having witnessed a sharp 10 percent correction in benchmark indices from their respective record highs, analysts are of the view that it is time to pick quality stocks at lower valuations. They are betting more on large stocks which have corrected more than midcaps or small caps.

 

Both global, as well as domestic factors, have led to a broad correction across sectors. But the fundamentals of Indian economy remain strong and most of the large-cap stock companies are attractively valued pos.

 

Disappointment over earnings growth, confusing MAT mechanism, and other global economic worries have forced the markets to enter into a correction phase. Once the confusion regarding MAT vanishes, FPIs will come back to take their positions in the market.

 

Investors need to follow a bottom-up approach at this point. Bottoms up mean asking clients to buy private banks, like Yes Bank and IndusInd Bank, L&T, Sun Pharma or maybe Lupin, says Stock recommendation expert from various market research firms.

 

Most of the market experts also feel that these are good large-cap stocks which one should start taking the exposure and as the market recovers, the first ones to recover will be this large-cap universe.

 

Investors should be aware that the ongoing correction is temporary and the Indian domestic markets are poised to grow with the improvement in the economy and further policy initiatives that would be taken by the government.

 

 

"It is a very good time to enter the large-cap space. As the market has crashed heavily and the large-cap sector has corrected from its long-term bull run that was going on, making an entry in large caps at this point of time is suggested,” added the MCX free tips experts.

Below are a few stocks which market expert recommends for large caps

 

L&T Ltd

 

The company is well poised to capitalize on the upcoming business opportunities, particularly in the infrastructure, power and defense sectors, which are likely to benefit from the government’s thrust.

 

The management expects about Rs 150000 crore of orders in the next couple of quarters to come for bidding. These include orders from airports, metros, dedicated freight corridors, urban infrastructure, power generation, in.

 

Reliance Capital Ltd

 

The head marketing management of the organization noticed 15% to 20% capital growth for FY2016, while assets under management are keen on grow at about 10% to 12% and even higher if the market condition looks better.

 

The backdrop of rising per capita income can be dropped on Insurance and commercial finance businesses in and support by various business and economic environmental factors are attracting growth.

 

ICICI Bank Limited

 

Its strong and diversified franchise and large distribution network give the ability to leverage opportunities for profitable growth across businesses, even as asset quality trends would improve with a lag on the back of the expected economic recovery.

 

The bank is well-placed with regard to the capital required to support its growth. It believes that while the operating environment in FY2016 is likely to be better than FY2015.

 

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