“The next seven odd trading sessions will offer tremendous opportunity for the long-term investor who should invest in good quality management in sunrise sectors,” said Amar Ambani, head of institutional equities, YES Securities. “History has shown us that these wars offer good entry points for investors. Be it the wars of Vietnam, Gulf, Afghanistan, Iraq or the Crimean crisis, markets have fallen on war fears, then rallied when the actual battle broke out and further continued its upward journey post the war.”
ET took a look at stocks that could return about 40%, as per analysts’ consensus estimates compiled by Bloomberg. Some of these stocks like ICICI Prudential Life Insurance, Jindal Steel, SBI Cards, Tata Steel, BPCL, UPL, DLF and HDFC Life, among others, have fallen more than 25% from their respective 52-weeks highs. State Bank of India, ICICI Bank, HDFC Bank, and Tech Mahindra could return between 35% and 40%, according to Bloomberg analyst consensus estimates.
The benchmark Nifty has corrected over 6% in the last five trading sessions. Since October when it hit an all-time high, the index has fallen 12.5%. NSE Midcap 100 and Small-cap 100 indices fell 9% and 11%, respectively, in the past five trading sessions.
“We expect volatility to remain high till the middle of March as two events are being awaited with respect to state elections results and the FOMC meeting,” said Vikas Jain, analyst, Reliance Securities. “However, we believe private banks, IT, and pharma are the sectors where investors should gradually build positions over the next few weeks.”
VK Vijayakumar, chief investment strategist, Geojit Financial Services, said non-ferrous metal producers, particularly Hindalco, Nalco, Hindustan Zinc, and Hindustan Copper, stand to gain from the disruption in supply chains.