Investing in uncertain times? Sharekhan's Gaurav Dua suggests these 13 stocks
In general, at least 272 companies on the BSE declined over 20 per cent in the past three months till February 22, 2022.
- Feb 23, 2022,
- Updated Feb 23, 2022 2:52 PM IST
A difficult situation usually separates the men from the boys. The same is visible on Dalal Street where fundamentally weak or overstretched companies in terms of valuations have fallen like ninepins. In general, at least 272 companies on the BSE declined over 20 per cent in the past three months till February 22, 2022, while the benchmark BSE Sensex retreated by 1.99 per cent during the same period.
While sharing his view on the ongoing fall and available investment options in the market, Gaurav Dua, head-capital market strategy, Sharekhan by BNP Paribas told Business Today that the fall is visible in the exorbitantly priced initial public offering especially loss-making new-age companies, mid-cap IT companies and momentum stocks in broader markets among others.
Some of the newly-listed firms including One97 Communications (Paytm), Zomato and FSN E-Commerce Ventures (Nykaa) have fallen over 40 per cent, 46 per cent and 36 per cent, respectively, in the past three months. Of late, the domestic equity market witnessed headwinds due to sustained outflows by foreign institutional investors, rising commodity prices, hopes of aggressive rate hikes by the US fed and escalating tensions between Russia and Ukraine.
“Some of these fallen stocks would recover but some of the other could languish till we have another phase of the one-way rally in smallcap or microcap companies. Quality would come to fore now with a clear distinction between returns in good quality companies and momentum stocks.” Dua said, adding it would be better to weed out weak companies to avoid further destruction of wealth and opportunity loss as money raised by exiting weak companies can be deployed in the right kind of stocks.
He further advised investors to focus on fundamentals and invest in the right quality of business rather than chase momentum stocks in the broader markets where the damage is extensive and recovery can take a lot more time.
At present, Dua is zeroing on domestic cyclical to play the sustained economic growth in India. He also preferred players like State Bank of India (SBI), Bajaj Auto, Larsen & Toubro, Ultratech Cement, DLF, Divi’s Laboratories in the largecap space. In the broader segment, the market watcher likes Oberoi Realty, Radico Khaitan, Jubilant Foodworks, Polycab, Persistent Systems, Healthcare Global Enterprise and Globus Spirits.
A difficult situation usually separates the men from the boys. The same is visible on Dalal Street where fundamentally weak or overstretched companies in terms of valuations have fallen like ninepins. In general, at least 272 companies on the BSE declined over 20 per cent in the past three months till February 22, 2022, while the benchmark BSE Sensex retreated by 1.99 per cent during the same period.
While sharing his view on the ongoing fall and available investment options in the market, Gaurav Dua, head-capital market strategy, Sharekhan by BNP Paribas told Business Today that the fall is visible in the exorbitantly priced initial public offering especially loss-making new-age companies, mid-cap IT companies and momentum stocks in broader markets among others.
Some of the newly-listed firms including One97 Communications (Paytm), Zomato and FSN E-Commerce Ventures (Nykaa) have fallen over 40 per cent, 46 per cent and 36 per cent, respectively, in the past three months. Of late, the domestic equity market witnessed headwinds due to sustained outflows by foreign institutional investors, rising commodity prices, hopes of aggressive rate hikes by the US fed and escalating tensions between Russia and Ukraine.
“Some of these fallen stocks would recover but some of the other could languish till we have another phase of the one-way rally in smallcap or microcap companies. Quality would come to fore now with a clear distinction between returns in good quality companies and momentum stocks.” Dua said, adding it would be better to weed out weak companies to avoid further destruction of wealth and opportunity loss as money raised by exiting weak companies can be deployed in the right kind of stocks.
He further advised investors to focus on fundamentals and invest in the right quality of business rather than chase momentum stocks in the broader markets where the damage is extensive and recovery can take a lot more time.
At present, Dua is zeroing on domestic cyclical to play the sustained economic growth in India. He also preferred players like State Bank of India (SBI), Bajaj Auto, Larsen & Toubro, Ultratech Cement, DLF, Divi’s Laboratories in the largecap space. In the broader segment, the market watcher likes Oberoi Realty, Radico Khaitan, Jubilant Foodworks, Polycab, Persistent Systems, Healthcare Global Enterprise and Globus Spirits.