Know your investment: Get expert advice on 19 stocks

On Friday, the Sensex closed 272 points or 1.63% higher at 16,949.83. The Nifty ended up 84.30 points at 5,139.05.

A lot of important events are stacked up for the market. Globally, there is Greece election results on June 17. Domestically, we have the Reserve Bank of India meet on June 18.

Moneycontrol.com got Madhumita Ghosh, vice president- PMS & research, Unicon Financial to answer the stock queries you sent us on our Facebook page as part of KYI (Know Your Investment). Check out her comments.

Devang Vohra: What is your view on Tata Motors?

Ghosh: Tata motors is fundamentally a strong company. Going forward, the domestic business would continue to be robust in the consumer driven economy. The Jaguar and Rover is expected to gain stability and provide sustainable growth. 

The company has reported 12% year-on-year growth in its global vehicle sales at 96,089 units in May on the back of strong 35% rise in sales of its luxury Jaguar Land Rover (JLR) vehicles. Sales of its JLR vehicles stood at 30,094 in the month. We recommend buying Tata Motors at every decline  in this volatile market and have a target of Rs 280- 300 in 12-18 months.

Kuldeep Singh: Which is the best largecap stock to buy now?

Ghosh: One of the best and stable largecap stock is HDFC Bank. That can be bought.

Jolly Jaleed: What about Reliance Power?

Ghosh: I am not very upbeat on Reliance Power.

Nachiket Kelkar: With the markets remaining volatile, is it still good to invest in defensive sectors like FMCG?

Ghosh: As the valuations of these stocks have moved up and currently is more than the last five year averages, one cannot expect significant outperformance from these stocks over the current levels in the long-term. But they are unlikely to go out of favour with investors in the current phase of uncertainty and volatility.When the economy starts doing well and the investment activity starts getting back on track, these stock will lose their momentum. Since the market is expected to be volatile for at least next two-three quarters, one may have selective exposure to FMCG  which can ride the volatility.

Haresh Gala: What is your view on Infosys and TCS?

Ghosh: The demand scenario in BFSI sector is tough and is expected to be so in the next two quarters. Additionally, healthcare/energy/utilities are unable to grow strongly as well. Clients are cautious and taking more time for deliberation and signing deals.

Both the companies are facing macro headwinds, but out of the two TCS has been  more proactive in diversifying in new business verticals and has shown better growth in the last two quarters. We feel a 10% upside is still there in TCS and we are neutral on Infosys.

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Harsha Jethmalani: What is your outlook on State Bank of India?

Ghosh: SBI is fundamentally a strong bank with modest NIM margins and NPA levels. Although there could be pressure on NPA  in the next two quarters, we expect that with its inherent strength, it would be able to address it prudently and continue to grow. With the interest cycle peaking out and reversal commencing, we are optimistic about the PSU banking sector and SBI to be specific.

Ritesh Presswala: I have 350 shares of Titan Industries at Rs 300. Can I hold or should I exit?

Ghosh: Gold, the underlying asset is strong as it augurs well for Titan`s jewellary b vertical. With the consumption theme continuing to play well, we expect companies like Titan with strong product line and high reliability factor to command premium in the market. Titan is eyeing aggressive store expansion in jewellery and watches. It would yield strong earnings growth momentum. Expansion lined up in all verticals also will be long-term growth drivers.‘Eye Plus’ and ‘Fast Track are catalyst for future. One can hold the stock.

Saikat Das: What is Reliance Industries' (RIL's) long-term outlook? My average cost price is near 52-week high. Shall I book losses and buy fresh or should I hold on for another three years?

Ghosh: In case you want to hold the stock, there is a scope of it moving up in the next three years .

Indrajit Ghosh: Which five midcap stocks are undervalued currently?

Ghosh:Allahabad Bank, Sintex, IVRCL, United Phosphorus, PFC are undervalued

Abhisekh Bohra: What is your view on GVK Power for the next six months?

Ghosh: I am not bullish 

Saurav Mandhotra: Can Suzlon Energy touch Rs 50?

Ghosh: Looking at the fundamentals, I do not have much hope in the next 12 to 18 months.

Sharan Hiremath: What is your outlook on Educomp Solutions?

Ghosh: I am not very positive on the company.

Chintan Shah: I have 123 shares of Orchid Chemicals? What should I do?

Ghosh: One can hold the stock for a quarter, if you have a high risk profile. As it is quoting at near 52-week low and the profit for fourth quarter was down mainly due to high interest, and FCCB loan.  Orchid Chemicals is restructuring and trying to bring down its interest burden. This could be positive move. Further they are expected to grow in FY 13 by 20%. However, for medium to low risk investors it is advisable to switch over to better pharma stocks like Ranbaxy or Lupin.