Experts pick 10 reasonably priced stocks despite weak Indian stock market
Stocks to buy for the long term: From BEL, Reliance to SJVN – Experts pick 10 reasonably valued stocks despite weak Indian stock market
Stocks to buy for the long term: Experts advise investors to buy stocks available at or near fair value,
Stocks to buy for the long term: Indian stock market has remained a ‘sell on edge’ market for the last six months. After scaling a new peak of 26,277 on 26th September 2024, the frontline index closed at 22,397 on Thursday last week, registering a drop of 3,880 points or 14.75% from its all-time high. The BSE Sensex scaled a new peak of 85,978 on 26th September 2024 and the 30-stock index closed at 73,828 on Thursday last week, registering a drop of 12,150 points or nearly 14.15% from its all-time high. The Bank Nifty index pulled back to 48,060 levels from its all-time high of 54,467, registering a drop of 6,407 points or 11.75% from its all-time high. In the broader market, the BSE Small-Cap index declined over 24%, while the S&P BSE Mid-Cap index fell 21.40% from their respective peaks.
Discounted prices and long-term investors have a great opportunity to reshuffle the stock portfolio. She advised investors to look for stocks available at or around fair value.
Speaking on the Indian stock market, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “The domestic market fluctuated due to global economic trends, US trade policy concerns and sector-specific movements. Positive global cues, strong PMI data and gains in metals, PSU banks and IT fueled a mid-week recovery. However, the gains were later reversed due to selling pressure in financial stocks amid fresh tariff concerns. Despite external challenges, the Indian market showed resilience, with investors closely tracking global trade and domestic economic data. This week saw optimism about growth, but also caution due to global uncertainties.”
Stock Market Next Week
On the Indian stock market outlook, SBI Securities said, “We remain cautiously optimistic given the recent recovery and declining valuations. Investors should stick to quality businesses with supportive valuations for a medium to long-term investment horizon.” Expecting increased cash flows on Dalal Street, SBI Securities said, “US inflation rose 2.8% on a yearly basis and 0.2% on a monthly basis against forecasts of 2.9%/0.3%, respectively. The US 10-year yield, which was steady at the start of the week, edged higher to 4.31% after the CPI report, while the dollar index remained below the 104 level during the week. Back to the Indian market, India’s CPI data came in at a 7-month low of 3.6% in Feb ’25 as against expectations of 4.0%, largely driven by lower food prices. This raised expectations of further rate cuts by the RBI in its upcoming policy meeting in April. The IIP print was at an 8-month high of 5.0% in Jan ’25 as against 3.5% in Dec ’24. With regard to liquidity, FIIs sold net ₹6,423 crore while DIIs sold net Bought ₹3,776 crore (DII data in cash market during the week till March 12)
“Next week will be crucial from a macro event perspective as the FOMC will meet to decide on the interest rate. Fed rates are expected to remain unchanged in the upcoming meeting, and the focus will remain on Fed’s commentary on inflation and economic outlook. India’s wholesale price inflation for February 2025 will also be in focus next week. Apart from macro events and economic data releases, Trump’s tariff tantrums will remain in focus. We remain optimistic about the market due to the recent recovery and ease in valuations. Talking about the important levels, the Nifty50 index may face an immediate hurdle at 22,670-22,700 as this zone marks a crucial resistance along with the 20-day EMA and the 38.2% Fibonacci retracement level of its previous downward journey (23,807-21,965) is placed in that zone. However, if the index crosses this resistance, it may move upwards in the coming sessions 23,000-23,300 levels can be reached. However, on the downside, 22,300-22,200 zone can provide protection in case of an immediate decline,” SBI Securities said.
Stocks to buy for the long term
Seema Shrivastava of SMC Global Securities advised investors to buy stocks available at or near fair prices. “Investors are advised to focus on fundamentally strong companies such as
- Sapphire Foods India Ltd,
- Lemon Tree Hotels Ltd,
- JSW Steel,
- Bank of Baroda,
- UPL Ltd,
- SJVN Ltd,
- Axis Bank Ltd
- Bharat Electronics Ltd,
- KEC International
- Reliance Industries Ltd (RIL)
look good after the recent sell-off, she added.
Disclaimer: The views and recommendations expressed in this article are the personal views of the individual analysts. These do not represent the views of paristvnews. We advise investors to check with certified experts before making any investment decision.
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