As Sensex, Nifty trade rangebound, these 5 stocks are top bets for investors

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Published: July 3, 2019 1:12:30 PM

As the stock markets trade rangebound, the investors are jittery about how to go ahead amid such volatility.

With Friday’s gain, the Sensex has added about 816 points in the last two sessions. (File photo)Since moving forward wisely during such times holds significance, the investors are in search of robust market strategy.

As the stock markets trade rangebound, the investors are jittery about how to go ahead amid such volatility. Since moving forward wisely during such times holds significance, the investors are in search of robust market strategy. The small cap stocks offer good bets from a five-year perspective, a veteran market analyst told Financial Express Online. “Small and mid cap stocks have underperformed the broader market but quality stocks have a reasonable high chance of outperforming in the medium to long term,” Naveen Kulkarni, Head of Research with Reliance Securities told Ashish Pandey of Financial Express Online.

Here are excerpts from the complete interview:

What are your Sensex, Nifty levels going ahead? Are markets overvalued?

Our Nifty 50 index target for December 2019 is 13000. Market is not overvalued, but going forward earnings will remain the most critical factor.

Should investors look at select mid and small-caps for the next five years?

Yes, small cap stocks are good bets from a five years perspective. Small and mid cap stocks have underperformed the broader market but quality stocks have a reasonable high chance of outperforming in the medium to long term.

What are your top bets?

We are positive on a wide range of mid and small cap stocks across the sectors. In IT our top mid cap pick is Sonata Software, in banks we like Federal Bank, in cement our top picks our JK Cement and JK Lakshmi Cement and in infra sector we like NCC.

Is the slowdown in the Indian economy a cause of worry? When do you see economy getting its mojo back?

Yes, slowdown is quite worrying but it will be critical to see how the government deals with this slowdown. Also critical will be the trajectory of interest rates and its transmission. Economy should start performing after monsoon, provided we have a good monsoon, otherwise the challenges are likely to exacerbate further.

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