Top shares to buy as Sensex, Nifty bleed: Analyst share top stock picks, and sectors to avoid

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Published: February 28, 2020 3:06 PM

Sensex, Nifty crashed over 3 per cent in the trade today mirroring the global sell-off on the back of coronavirus fears. However, market watchers see coronavirus fears as short term in nature and expect markets to rebound after a quarter or so.

Sensex, NiftyAmid today’s fall, investors can bet on these stocks and avoid certain sectors to stay safe

Even as domestic equity markets crashed today wiping off the Rs 5 lakh crore wealth within minutes of opening, analysts see buying opportunity in some sectors and have advised to buy a few stocks. Sensex, Nifty crashed over 3 per cent in the trade today mirroring the global sell-off on the back of coronavirus fears. However, market watchers see coronavirus fears as short term in nature and expect markets to rebound after a quarter or so. Amid today’s fall, investors can bet on these stocks and avoid certain sectors to stay safe. Chemical stocks which are into both pharma and intermediate, which have been performing good can be bought, says Narendra Solanki, AVP- Equity Research, Anand Rathi Shares and Stock Brokers.

The top picks from asset management companies and chemicals are Aarti Industries, Deepak Nitrite, HDFC Asset Management Company, Nippon Life India Asset Management. “As every investor has different types of risk appetite and positioning, therefore can recommend sectors such as financials, insurance companies, consumer companies which are not only FMCG but other consumer companies such as consumer durable companies can be looked at from buying perspective,” Narendra Solanki said.  

“Five stocks that can be bought in today’s trade are ICICI Bank, HCL Tech, Abbott India, RIL and IRCTC, as these are growth companies with decent earnings, Ajay Bodke, CEO, portfolio management services at Prabhudas Lilladher, said. While he is upbeat on sectors such as FMCG, IT and private banks, he suggested to avoid sectors such as Real Estate, metals and capital goods companies. 

TCS, ACC, Titan, Asian Paint and HUL are five stocks that investors can buy, as the relative strength index is rising, these stocks are expected to perform well. They may not outperform in absolute terms but if you stick to relative term then they are expected to relatively outperform the broader markets, says technical analyst Milan Vaishnav.

Stay away from these sectors

However, investors are advised to stay away from the auto and metal sector. “Even as we expect China steel prices to weaken in the near term, we expect it to unleash a stimulus package to rejuvenate economic growth stalled by both trade war with the US and Covid-19 outbreak,” Emkay Global Financial Services wrote in a recent report. However, Milan Vaishnav suggested to avoid energy sector, auto sector and PSU Banks, as they are regularly losing the relative momentum against the broader market.

These are experts’ recommendations. Financial Express Online doesn’t take any responsibility. Please consult your investment adviser before investing.

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