As expected Monday lost another 300+ pts after S&P announced it's downgrade of US. Markets may continue to slide more depending on global cues. At the time of writing this post, Dow and Nasdaq are down 2.3% and 2.9% resp. Indian markets may open weaker on Tuesday. But it seems selling in the Indian markets may abate soon. As mentioned earlier investors may look for picking up stocks in a staggared manner. Stocks mentioned earlier continue to hold promise and are a buy on every decline.
Additionally, panic in the markets, as are being seen now, not only throws up profitable opportunities but relative outperformers are discovered also. Such corrections help us identify strong stocks which will outperform. Following are a few such stocks. They have declined only minimally so far and when the market turns they will surely give better returns. Fundamentals also support their outperformance.
ABG Shipyard, ACC, Dabur, GVKPIL, Idea Cellular, Petronet LNG, Powergrid
One can also consider BHEL. In view of its disinvestment plan it may be better to wait and buy the stock through its public offer. However if the price falls further one may even buy from the secondary market.
Disclosure: I hold all the above stocks except BHEL which I intend buying around 1600
level/through public offer.
Happy investing
Basudev
No comments:
Post a Comment