Risk aversion among investors could increase in the coming days as the war between Russia and Ukraine shows no signs of decelerating, with prices of global commodities ranging from oil to agricultural products shooting through the roof. Benchmark indices fell 2.5 per cent for the fourth straight week ended March 4 amid rising geopolitical tensions between Russia and Ukraine and extended a losing streak. In the short week, with high volatility, the market started on a positive note but lost momentum as the week progressed. The BSE Sensex ended 1,524.71 points (2.72 per cent) lower at 54,333.81, while the Nifty 50 ended last week lower at 16,245.4, down 413 points (2.47 per cent).
Apart from geopolitics, investors will watch the results of crucial state elections including Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur on March 10, which could have an impact on equity markets.
Ajit Mishra, Vice President – Research, Religare Broking Ltd said: “In the short term, markets are very difficult and highly volatile, but from a medium to long term perspective the focus will return to fundamentals and sector-specific results. Hence, at present, investors need to be very selective in choosing stocks. One can invest in stocks like Bajaj Auto, Bharti Airtel, Sudarshan Chemical, Birlasoft, Biocon and Inox Leisure.
Here are some stock recommendations by Ajit Mishra, Vice President – Research, Religare Broking Ltd that can propel you through volatile markets:
Bajaj Auto
We believe that Bajaj Auto is better positioned than its peers, given its strong presence in the premium segment and exports. The recent recovery in the three-wheeler industry also augurs well for Bajaj Auto, given its leadership position. Better mix and export incentives will drive healthy growth going forward. In addition, it has a strong balance sheet, excellent free cash generation, high dividend payout and strong return ratio (+20 percent).
Bharti Airtel
Bharti is ranked among the best in the industry with its strong execution capabilities and wide client base. We believe it can further re-rate on the back of anticipated improvement in financial performance due to higher ARPU gains, strong customer base, continued growth of 4G customers and improved traction in other businesses. In addition, strong cash flow generation will help shrink the balance sheet and allow investment in new technology.
Sudarshan Chemical
We believe that the company is well positioned to take advantage of opportunities in the global as well as Indian pigments sector, driven by positive industry growth trend, high entry barrier in the sector and wide range of products in their portfolio. In addition, they are highly competitive among peer groups. In addition, the financial performance of the company has been strong and will continue to do so in future.
Birlasoft
Birlasoft is one of the leading IT companies that will benefit from industry tailwinds, increased spending on digital and cloud services and outsourcing work by companies. Its focus on platform-based digital initiatives, cloud adoption and automation will drive future growth for the company. Further, it aims to win big deals, strengthen partnerships with global players and service customers with high-end digital solutions. Furthermore, innovation, maintaining relationships with customers and retaining employees, and maintaining attrition levels will be the key going forward.
Biocon
Biocon is well positioned in the pharma sector. The company’s focus will be on increasing revenue and market share by expanding the biosimilar, generics and therapy portfolio, maintaining relationships with the companies they have collaborated with, and expanding their geographic reach.
inox holiday
A promising content line-up and strong pent-up demand along with easing restrictions from the state governments will help the recovery for the multiplex industry. We love Inox in this space, which has been driven by its focus on enhancing the consumer experience, sustained emphasis on expansion, efforts to increase per capita spend and drive footfall. The COVID-19 pandemic may aid further consolidation for the multiplex industry as smaller exhibitors will suffer due to the liquidity situation. INOX has been at the forefront of the past and we expect the same trend to continue once normalcy returns.
Disclaimer:Disclaimer: The views and investment tips of 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 taking any investment decision.
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