1. Sensex sheds over 1,000 points in 6 days, here are top 5 stocks to bet upon

Sensex sheds over 1,000 points in 6 days, here are top 5 stocks to bet upon

Sensex and Nifty corrected 4 per cent in the past six trading sessions till December 9.

By: | Updated: December 9, 2015 4:21 PM
Sensex nad stocks to bet upon

The BSE Sensex lost 1,133.36 points, while NSE Nifty shed 342.40 points in the past six trading sessions till December 9. (Photo: PTI)

The domestic benchmark indices – Sensex and Nifty – corrected over 4 per cent in the past six trading sessions till December 9. BSE Sensex lost 1,133.36 points, while NSE Nifty shed 342.40 points during the period.

Among the sectoral indices on the BSE, the BSE Metal index fell the most — 7.76 per cent in the past six trading sessions, it was followed by BSE Oil & Gas index (down 5.31 per cent), BSE Realty index (down 4.14 per cent), BSE FMCG index (down 5.13 per cent) and BSE Power index (down 4.77 per cent). Rest all other sectoral indices also fell during the period.

Foreign Institutional Investors (FIIs) stood net seller in Indian equities and sold shares worth Rs 4,208 crore during Dec 1 – Dec 8. On the other hand, Domestic Institutional Investors (DIIs) bought shares worth Rs 2,242 crore during the same period.

Gaurav Jain, director, Hem Securities, said, “Crude oil prices hitting new lows, continued selling pressure from domestic and foreign investors and hindrance in smooth functioning of winter session of Parliament causing concerns on passing of key reform bills mainly GST dampened the sentiment of the Street.”

The BSE Midcap index and BSE Smallcap index outperformed the broader market indices. For market updates, click here

We  give a list of companies that could be good investment bets as suggested by brokerage houses in the current market scenario.

Investment Options
Amara Raja Batteries
Recommended By: Angel Broking
Target Price: Rs 1,040
Why Buy: Amara Raja is a well diversified auto ancillary player having presence across the automotive and the industrial segment and a broad OEM as well as replacement customer base. According to Angel Broking, Amara Raja Batteries is a high quality stock to play the auto sector revival. The scrip was trading at Rs 835.80 in the morning trade on Wednesday.

HDFC Bank
Recommended By: Angel Broking
Target Price: Rs 1,262
Why Buy: The bank’s credit and deposit growth continues to beat the industry growth rate, driven by dominant market position in most retail business segments, healthy CASA and continued network expansion. This provides strong visibility for a robust 20 per cent earnings trajectory, coupled with high quality of earnings on account of high quality retail business and strategic focus on highly rated corporates. Shares of HDFC Bank was at Rs 1054.15 on Wednesday at 10.41 am.

MT Educare
Recommended By: Angel Broking
Target Price: Rs 169
Why Buy: MT Educare has strong positioning in the Secondary School and Higher Secondary
School coaching business in Mumbai location (contributes around 80 per cent to the overall revenue). The company , this year, has introduced a technology, the unique – Learning Management System (LMS) – for strengthening its offering in its core business. MT Educare to report a healthy top-line performance, going forward, on the back of strong growth across the pre-university (PU) college business, Shri Gayatri Educational Society (SGES), and the Lakshya business. Further, the company to report a strong growth in the CA segment in Tamil Nadu and Mumbai. The scrip was trading at Rs 134 points in the morning trade.

Housing Development Finance Corporation
Recommended By: Sharekhan
Target Price: Rs 1,400
Why Buy: According to the management of Housing Development Finance Corporation (HDFC), the high-margin non-individual loans (29.1 per cent of loan book) have shown some signs of recovery over the past couple of quarters (8 per cent YoY). Even as the company remains conservative on developer loans, it expects growth could be much better over the next three to four quarters, given a low base and pent-up growth that may kick-in. On the other hand, the individual loans continue to report healthy growth of 23 per cent (in Q2FY2016) including loans sold. The reduction in interest rates coupled with pick-up in economic growth could drive growth in mortgages. HDFC was trading at Rs 1,163 at 10.42 am on December 9.

Persistent Systems
Recommended By: Sharekhan
Target Price: Rs 820
Why Buy: Persistent Systems is moving in the right direction to create newer services, products and platforms in the digital space to accelerate the growth momentum. It has already started seeing signs of success though on a small scale. Sharekhan believes the meaningful effects on financials from the newer offerings will take time to reflect in earnings. However, given the growth momentum in enterprise segments and bottoming out of ISVs segment coupled with inorganic strategy to drive growth in IPs revenues will accelerate growth in FY2017 (the management has also indicated at growth to resume soon). For H2FY2016, the management expects revenue growth to be better led by the integration of Aepona Holdings (annual run rate of $10 million) and the launch of a new version of TNPM 2) in the next two quarters, though kept its guidance for FY2016 at 10-12 per cent. It expects margins to be affected from the integration cost of Aepona Holdings. The share price of Persistent Systems was down 1.80 per cent at Rs 676.35.

Disclaimer: The stocks are recommended by the respective brokerage houses and not a recommendation from Financial Express online.

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