Renewed worries about rise in interest rates by the US Federal Reserve later this year dampened market mood on Thursday. As a result, the BSE Sensex and NSE Nifty tanked over 1.50 per cent and settled below their crucial level of 28,000 and 8,600, respectively. Now, the results season has started and Infosys and Tata Consultancy Services failed to impress investors with their second quarter numbers. Market experts believe that Indian stock markets may see further volatility from here onwards.
Market analyst, Milan Vaishnav, Consultant Technical Analyst, Gemstone Equity Research & Advisory Services, said, “In coming days, it would not be a surprise if the Nifty may test its 100-day moving average (DMA) as it would also complete measuring implications of the current pattern on the daily charts.”
Below are the three stocks which you can consider to invest in the present market conditions.
1) KEC International: The company has secured fresh orders worth Rs 1192 crore in Transmission & Distribution (T&D), Railways, Cables and Solar businesses with which its outstanding order book swelled to Rs 11590 crore. Brokerage firm Reliance Securities is bullish on KEC International shares with a target price of Rs 170. On Friday, shares of KEC International were trading 0.28 per cent up at Rs 125.40 in the afternoon trade. Reliance Securities in a research note said, “We expect steady improvement in margins, driven by reducing backlog of low-margin legacy orders, lower commodity prices and improved margin profile in new orders as well as break-even in Tower & Cable business. As we expect strong order backlog coupled with improving margins to drive 27.5 per cent CAGR in KEC’s earnings over FY16-18E, we reiterate our ‘Buy’ recommendation on the stock, valuing stock at 13x FY18E EPS.”
2) Info Edge: The company runs several market-leading online properties, but its matrimonial portal Jeevansathi is yet to scale up from being the No 3 player. The company recently rejigged its strategy for Jeevansathi to have a greater focus on micro markets, and newly released quarterly data shows that this shift has already begun to deliver encouraging results in the form of higher revenue and better employee productivity. Religare Institutional Research in a report said, “We stay positive on Info Edge shares given its leading online assets and strong execution and maintained ‘Buy’ rating with a March 2017 target price of Rs 1,050.” On October 14, shares of the company were trading at Rs 888.20 in the afternoon trade.
3) IndusInd Bank: Private sector lender IndusInd Bank posted 25.75 per cent increase in net profit to Rs 704 crore for the second quarter ended September 30, 2016. The bank had recorded a net profit of Rs 560 crore in the July-September quarter of last fiscal, IndusInd Bank said in a BSE filing. Brokerage firm JM Financial is bullish on IndusInd Bank shares with a 12-month target price of Rs 1,450. The brokerage house in a research report said, “IndusInd Bank (IIB) reported another strong quarter with earnings growth of 26 per cent YoY driven by continued NIM expansion, diversified loan growth and strong fee growth.” The scrip was trading 0.45 per cent down at Rs 1,213.10.