Sensex plunges, Dilip Bhat advises on smart purchases
Summary: Market expert Dilip Bhat suggests buying stocks like SBI and pharma stocks on a longer-term basis amid the current market panic. He also recommends considering stocks in sectors like FMCG and names like ICICI Bank, HDFC Bank, and SBI in the banking sector.
Super Isabel
Super Isabel
Nov. 05, 2023 17:01
Sensex plunges, Dilip Bhat advises on smart purchases

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"My sense is that at these times of panic, it is very difficult to call a bottom but some of the better known stocks like SBI , which has fallen quite a bit, one can buy on a slightly longer term basis irrespective of what happens in an overall scenario," says market expert

Very frankly, it is certainly the contagion impact which we are seeing in the market and we all know what has come out and how we are going to respond to that is more important than what has really happened. This response itself is going to determine whether it is going to spread further. When such a situation arises suddenly, it is very difficult to take a call on the likelihood of it getting stalled.

But yes, some of the stocks are taking it on the chin. My own sense is at these times of panic, it is very difficult to call a bottom but some of the better known stocks like SBI, which has fallen quite a bit, one can buy on a slightly longer term basis irrespective of what happens in an overall scenario.

Pharma is certainly one of the spaces that one should look at because that is one of the space which has not done anything at all. They have only gone down. I think one should definitely look into some of the frontline pharma stocks like Sun Pharma I will also be a little more comfortable with something like Larsen & Toubro or Siemens or ABB under these circumstances. Without any doubt, there are two things which are happening; one is we do not have a tailwind in terms of the FII support and valuations are not so cheap and possibly this even provides an opportunity for a correction on an overall basis.

Taking all that into account, these two-three sectors look pretty good. As a safe bet, I would even think of FMCG names like Levers or Britannia which can be a good support to the overall portfolio.

After the exit of the Mr Puri, who was a quite an iconic figure, ICICI Bank took over bank leadership from HDFC Bank and it is not very easy to dislodge them immediately though the way it is putting its act together, HDFC Bank certainly will sooner or later go for that leadership position. But for the time being, leadership will still belong to ICICI Bank followed by HDFC Bank. In terms of PSU space, SBI is the leader and possibly Canara Bank or Bank of Baroda might be on the radar. One should go with these three-four names which at the moment is on a longer basis.

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