TCS shares near Rs 2,650: Buy the fear? Expert calls it a 'million-dollar question'; sees opportunity in Vedanta, Nalco

What should investors do with shares of Tata Consultancy Services Ltd (TCS)? The question, simple on the surface but complex in the current market setup, was put to Globe Capital's Gaurav Sharma during an interaction with Business Today on Thursday. He described it as a million-dollar question.

TCS, which was once trading near Rs 4,500, has fallen sharply to around Rs 2,650 -- a steep decline of more than 40 per cent amid broader weakness in the IT sector.

"I think this is somewhat of a million-dollar question at the moment. Whether it is funds, PMS, large family offices or retail investors, this particular stock is present in almost everyone's portfolio through one medium or another. Therefore, at large, we are all invested in the stock in some way or another," he said.

Despite the sharp fall, Sharma believes the correction could present a staggered accumulation opportunity for long-term investors.

"Considering the current scenario, these are the times one should look at the best of the best when they are beaten down heavily. When the stock was at Rs 4,500, most of us were bullish on the story and willing to buy it. It is now available at a much corrected price. So, these are the times we should gradually accumulate the stock, keeping a long-term view of at least one-and-a-half to two years. We could see a reversal coming in," Sharma said.

"A good amount of money can be made from such opportunities because these stocks do not underperform the markets for a very long time. Such opportunities generally do not come by very frequently," he added.

Vedanta, Nalco: Levels to watch

Apart from TCS, Sharma also shared his outlook on metal plays Vedanta Ltd and National Aluminium Company Ltd (Nalco), expressing optimism on both counters. "Both these stocks are very well-placed and have a brighter future ahead," he said.

"As far as stop loss for Vedanta is concerned, one should place it at Rs 640 from a medium-term perspective, say at least two quarters. And, as far as National Aluminium is concerned, I'm bullish on this stock. Put a stop loss at Rs 320 and hold on to your positions. Any dip should be utilised to take a fresh entry. It is also available after a steep correction. We have seen a drop from Rs 420-plus levels to around Rs 360. This is a good level to add on to your positions," Sharma stated.