Six Quality Stocks to Buy During Market Volatility

0

Investor risk aversion could intensify in the days ahead, with the war between Russia and Ukraine showing no signs of abating, leading to soaring prices for global commodities, from oil to agricultural products. Benchmarks fell 2.5% and extended the losing streak in the fourth consecutive week ended March 4 amid growing geopolitical tensions between Russia and Ukraine. During the truncated week, with high volatility, the market started on a positive note but lost momentum as the week progressed. The BSE Sensex fell 1,524.71 points (2.72%) to end at 54,333.81, while the Nifty50 lost 413 points (2.47%) to end at 16,245.4 last week .

Besides geopolitics, investors will be watching the outcome of crucial state elections including in Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur on March 10, which could impact stock markets.

Ajit Mishra, Vice President – Research, Religare Broking Ltd., said, “In the short term, the markets are very delicate and very volatile, but in a medium to long term perspective, the focus will return to fundamentals and sector results. Thus, at present, investors should be very selective in choosing stocks. Investments can be made in stocks such as Bajaj Auto, Bharti Airtel, Sudarshan Chemical, Birlasoft, Biocon and Inox Leisure and in installments.”

Here are some stock recommendations by Ajit Mishra, Vice President – Research, Religare Broking Ltd. that could guide you through volatile markets:

Bajaj Auto

We believe that Bajaj Auto is better placed than its peers, given its strong presence in the premium segment and in exports. The recent upturn in the three-wheeler industry also bodes well for Bajaj Auto given its leadership position. A better mix and export incentives will drive healthy growth in the future. Additionally, it has a strong balance sheet, excellent free cash generation, high dividend payout and robust yield ratios (+20%).

Bharti Airtel

Bharti is best positioned in the industry given its strong execution capabilities and large subscriber base. We believe it may still re-evaluate based on projected improvement in financial performance due to higher ARPU benefit, strong customer base, continued addition of 4G subscribers and improved traction in other activities. In addition, strong cash flow generation would help deleverage the balance sheet and also allow for investment in new technologies.

Sudarshan Chemicals

We believe that the company is well positioned to take advantage of opportunities in the global and Indian pigments sector, thanks to a positive industry growth trend, a high barrier to entry in the sector and a wide range products in their portfolio. Also, they are very cost competitive among the peer group. Additionally, the company’s financial performance has been strong and will continue to do so in the future.

Birlasoft

Birlasoft is one of the major IT players that would benefit from industry tailwinds, increased spending on digital and cloud services, and companies outsourcing work. The focus on platform-based digital initiatives, cloud adoption and automation will drive the company’s future growth. Additionally, it aims to win major contracts, strengthen partnerships with global players, and serve customers across all verticals with premium digital solutions. In addition, innovation, maintaining customer relationships and employee retention, as well as maintaining the level of attrition will be key to the future.

Biocon

Biocon is well placed in the pharmaceutical sector. The company’s goal will be to generate revenue and market share by expanding portfolios of biosimilars, generics and therapies, maintaining relationships with companies it has partnered with and expanding their geographic reach.

Stainless Steel Leisure

The easing of restrictions imposed by state governments, coupled with a promising content lineup and strong pent-up demand, would help the multiplex industry recover. We like INOX in this space given its focus on improving the consumer experience, continued focus on expansion, effort to increase per capita spend, and drive footfall. The COVID-19 pandemic may contribute to further consolidation in the multiplex industry as smaller exhibitors would suffer due to a tight liquidity situation. INOX has been the favorite in the past and we expect the same trend to continue after normalization.

Warning:Disclaimer: The views and investment advice of the experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before making any investment decision.

Read all the latest Assembly news, breaking news and live updates here.

Share.

Comments are closed.