In times of volatility: 6 largecap stocks from different sectors with upside potential of up to 35%

Once again the US banks are at the center of a storm in equity markets. In such times, a few mid-cap stocks have been able to keep their head above water. They have been able to rise marginally in a market where the majority of stocks have been coming under pressure. Which makes it worthwhile to have a look at them. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.

These large cap companies have shown an improvement in their SR score at a time when bears are ruling the street. All thanks to global developments, market breadth and all other market parameters have moved back into the correction zone. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists down stocks which fulfill the various criteria as specified into the algorithms & filters.

Except for the last four weeks in which nifty witnessed some cuts which can be called as consolidation, nifty and sensex have been under the control of bulls. During this period, some stocks have witnessed consistent improvement in their scores. The stocks from sectors like banks, sugar, metal and microfinance have come to the list. The selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

Last three weeks have seen a sharper correction both in terms of what nifty and sensex have witnessed but also in terms of market breadth coming underpressure. Now because this correction is coming at a time, when some events risks are on the domestic front and also because of developments in the US. It would be better that caution should be added to the decision making in the stock market. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.

After remaining under the control of bulls, mid-cap stock witnessed a sharp correction early last week and also this week. There is some correction taking place in a few select sectors. However analysts are still bullish on select mid-cap stocks. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or strong buy . This predefined screener is only available to ET Prime users.

Unlike last quarter of 2023, when nifty and sensex used to witness correction and mid-cap index was able move higher. Since the start of 2024, the mid-cap index is also participating in the correction, clearly indicating that some profit booking is taking place in this segment of the market. Having said that, if one looks at the flow of money to the mutual funds, a good amount of it is still coming in funds which are focussed on mid or small cap. There is no way one can fight with liquidity, if it is going to mid caps and they are moving up irrespective of valuations or quality of stocks one cannot argue. But the only thing which as an investor one can do is to be careful when taking exposure to this segment of the market. Stay away from stocks where there is a narrative that this sector will do well because of ABCD reasons or the company will get such and such orders worth this much. There is enough evidence in history to show that more than anything else, checks and balances are most important at this point of time, while making investment decisions.

Buy or sell stocks: Ruchit Jain of 5paisa has recommended two stocks to buy this week - Tata Chemicals Ltd and Max Financial Services Ltd.

Textile is one of the oldest industrial sectors in India. However, right from labour issues to smaller Asian countries becoming more competitive in terms of cost of production, different segments of the textile industry have faced more headwinds than tailwinds in their history of existence. This list is drawn from Stock Reports Plus, powered by Refinitiv, with over 4,000 listed stocks along with detailed company analysis focusing on five key components - earnings, fundamentals, relative valuation, risk and price momentum.