Sensex has lost more than 30 percent
so far this year, that’s nearly 13,000 points and is down about 33 percent
from its record high of 42,273 registered on January 20.
BSE-listed companies have come down by more than Rs 40 lakh cr in the same
period. Tracking the sell-off in markets, nearly 30 companies have turned into
midcaps from large-caps in the same period as fears of economic slowdown gripped
equity markets across the globe.
companies with a market capitalization of over Rs 20,000 cr as on January 1. As
per the Amfi calculations, the top 100 stocks in terms of market capitalization
are classified as large-caps and the market-cap is usually over Rs 20,000 cr.
BSE500 index whose market capitalization has fallen below Rs 20,000 cr as on
March 16, 2020, data from AceEquity showed. The list includes names like Adani
Transmission, Adani Power, Canara Bank, Bank of India, LIC Housing, Shriram
Transport, Bharat Forge Ashok Leyland, etc. among others.
Specifically, if someone is looking to
buy in some of the companies from the list then Bata and PI Industries along
with Gillette are looking attractive, suggest experts.
the list we like Bata India, PI Industries and Gillette India. We would advise
investors to start accumulating these 3 stocks from the list.
not recommend to make an entire investment in one go. There is a panic in the
markets and long terms investors will definitely get a good bargain till the
What to avoid:
- Now the question is – what should they avoid
especially at a time when every stock is available at a steep discount when
compared to their record highs or even 52-week highs.
- Only selective companies have turned into midcap
companies due to loss of valuation. Travel stocks should be avoided for the
next one year, financial markets will take time to recover from the scare of
deadly coronavirus. The best bid is to avoid stocks of travel companies,
especially, focusing on Southeast Asian countries.
- Nair of Geojit Financial Services is of the view that export-oriented business should be avoided because of the reduction in
demand and trade restrictions or those companies that depend on raw materials
from abroad because of supply chain issues (especially from China), will be
impacted materially in the near term.
- These include sectors like Pharma, Automobiles &
Ancillaries and Metals. FMCG sector is likely to see limited impact while the
smaller Public Sector Banks are also likely to underperform, given the
uncertainty in Investor’s mind post the Yes Bank issue and the proposed the amalgamation of smaller banks.
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