8 capital goods & insurance stocks that can be wealth creators: Sanjiv Bhasin

Reliance had been in the Rs 2,200-2,700 band for quite some time. It has come closer to the lower end of the band and there are definitely positive triggers which will come later – maybe listing of Jio or the retail arm getting demerged into a different company. All those triggers will come eventually. So valuation-wise, after the correction, it looks more attractive.

I stopped making predictions a long time back because in the quest of trying to buy into companies which will go 10 times, sometimes you lose money. The aim is to identify companies which can do well and once they do well, they surprise you on the upside. When they surprise you on the upside, they generate huge returns. That has happened in a few companies.

India Business News: TCS will buy back about Rs 17,000-crore worth of its own stock, a bullish sign amid a volatile macroeconomic environment. It will buy up to 4 crore sh

Big Tech companies have been asked to come separately on March 11 to make suggestions on the digital competition law

“There is a mini bubble in the broader market and one needs to be selective about that. Do not be too quick to jump into an index which has gone up 35% and stocks that have gone up 3X-5X. Okay, the stock has corrected 5%, 10%, let it stabilise, do some homework and then start nibbling.”

Sanjiv Bhasin remains overweight on ONGC, considering it the best energy stock to own in India. He expects targets of 325-350 and advises buying on any decline. In power, says would still go with Tata Power and NTPC. Also, on declines, add REC, PFC. A disclosure, all these four stocks are in their portfolio also.

With some strength in the US dollar coming back, there is global trade which is getting started, metal prices have come down and sectors, which benefit from weaker local currencies have seen a recent bump up. The question is whether the domestic IT companies, which have been witnessing a phase of underperformance, especially the largecaps, will have any recovery due to the rupee factor? Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores.

“Across the board, I do not think there is any sector which is highly overvalued per se. But in two to three sectors, especially the external facing ones, like chemical and software, an investor needs to be a bit cautious. I would like to remain underweight in these two industries.”

“The next couple of years should be better for pharma companies as the pricing outlook keeps on improving and the cost pressure is moderating as well for inputs like APIs, chemicals, etc. So, generic companies or those with a good specialty portfolio, should do well in the next few years.”

Elixir Equities Director, Dipan Mehta, argues that new age companies such as Zomato, Policy Bazaar, Nykaa, and Paytm are stocks of the decade of the 2030s and could be huge multibaggers over the next 5-10 years. However, these companies are still in their investment phase, which reflects in their P&L, although they are making strong efforts to get into EBITDA positive. Regarding concerns about Page's decline, Mehta suggests that a demand slump due to higher inflation and uncertainty around weather patterns may have impacted Page industries.