Mumbai: According to experts, stocks like Reliance Industries and Infosys will give the markets direction. They say that this is the time to go with known names and always have faith in deep value investments.
Deven Choksey, KR Choksey Securities: Reliance, Infosys, Glenmark, look good in a falling market
Stocks like Reliance, Infosys, Glenmark Pharma, are stocks that look good in a falling market.
Go with known names
Do not panic. This is a time for establishing clarity in your investment approach. It is a time to go with known names and always have faith in deep value investments.
Rahul Mohindar, Viratechindia.com: Reliance, Infosys will be the key stocks to give market direction
Reliance, Infosys will be the key stocks to give market direction and in terms of levels we will have Rs 1000 as the key support for Reliance, which would decide the trend for the market. Another cue will come in if Infosys breaks Rs 3010.
Sumeet Rohra, Antique Stock Broking: Watch out for ONGC, Infosys, TCS and Reliance
ONGC is one stock that has bounced back very smartly from its lows on Friday. In case the market bounces back ONGC could take the markets higher. Also, one could look at the technology pack because as a sector it is not showing signs of weakness.
Infosys at around Rs 3025-3030 looks a good buy. TCS as a medium to long term buy also looks good at current levels. Technology as a sector has relatively higher chances of outperforming the Sensex. Reliance could also be looked at close to Rs 1012 levels.
One could also look at the steel sector on declines, as steel is a good sector following the Mittal-Arcelor deal. We can expect a lot of consolidation in the Indian steel sector.
Pashupati AdvaniI of Advani OTC Dealers
In IT particularly you have got a weaker rupee at the moment. Towards the end of the month one might see few surprises particularly in those companies in the IT sector which have got large outstanding and large borrowings because for them rates are going up.
The large caps have to cross where they were before and then the midcaps will start to move. New money is coming and the old money is not returning. There are a lot of new faces coming to India and they are looking at buying index stocks first, the names that they understand and the names that are liquid.
If you were 60 per cent in large caps and 40 per cent in midcaps, then one is probably now 80 per cent large caps and 20 per cent midcaps. So midcaps are going to take time before they get any kind of serious investment.
Surjit Bhalla of OX US Investments
I think that IT will or should surprise and if you look at what has happened to growth globally in the last quarter, it has been rather robust, so all the surprises in the sense of a large proportion of the earnings should end up as a positive surprise. Just about two months ago, a lot of these stocks were trading 40-50 per cent higher.
So even if you were to downgrade the earnings or expected earnings, you still come out ahead of what you are expecting two months ago. So the valuations in that sense are very attractive.
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