Weak market: Expert tells you what to buy

Global and domestic uncertainties have weighed heavily on the Indian market. Most experts feel that the market has bottomed out and it is the right time for bottom fishing. 

Moneycontrol.com got Anand Kuchelan, VP- research of Padmakshi Financial Services to answer the stock queries you sent us on our Facebook page as part of KYI (Know Your Investment). Check out his comments.

Laxmi Subramani: Has the market bottomed out or do you think more pain is left?

Kuchelan: On a valuation front, definitely I feel market has bottomed out. Negativity is at its extreme. However, uncertainties with respect to both domestic and global news flows still exists. This can give some shocks for the market in the near-term.

Charu Shrotri: Where do you think will BHEL, L&T and Punj Lloyd reach by this Diwali?

Kuchelan: It is difficult to take a view like this. I think out of the three stocks you have mentioned, L&T is the one which seems to have turned around, considering its Q4 results. Even BHEL reported decent set of numbers. These two stocks can be looked upon for investment purpose. I believe these are at right levels to enter.

Tirtho Guha: Can I buy Jaiprakash Associates and IVRCL now?

Kuchelan: I would stick to India Cement/Ambuja in the cement space instead of JP Associate. IVRCL, one could look for some bounceback till about Rs. 52-55 levels.

Samarth Sharma: How is Dena Bank and IDBI Bank for the long-term?

Kuchelan: Both the stocks are cheap with respect to the valuation levels. I think the whole of banking sector would benefit, if the interest rate cut continues resulting in improvement in asset quality.

Subhash Chaturvedi: Can I invest in Reliance Capital, Bank of India and Steel Authority of India at this level?

Kuchelan: You could look at Rel capital for sure. But instead of Bank of India I would recommend BOB. Instead of SAIL I would suggest Tata Steel.

Karamvir Singh Sawhney: Is SBI a buy for the short-term? What is the target?

Kuchelan: Difficult to take a short-term view with so much uncertainties around. But definitely a good buy with a horizon of about a year.

Sakshi Sharma: How are Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPCL) for the long-term?

Kuchelan: Good stocks, considering the deregulation of prices of petrol. But petrol constitues very small part of the overall revenues. Deregulation of kerosene and diesel could help these stocks in much better way. However, I feel there is not much downside to these stocks, but upside would depend on the mentioned triggers.

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Siddhartha Umesh Shah: What's the two-three years view on Multi Commodity Exchange of India (MCX)?

Kuchelan: Surely you can look to buy this stock.

Karthik Finally Here: What is your view on Nagarjuna Constructions and Central Bank of India?

Kuchelan: I prefer IVRCL instead of Nagarjuna Const. For Central Bank, the worst seems to be over. The fundamentals are likely to improve in the next fiscal.

Anand Rathi: Is Infosys a 'buy' now?

Kuchelan: The price of Rs 2,200-2,300 has factored in most of the negativity. I would suggest to buy around those levels. Exit it, if you get a price around Rs 2,700.

K Sri Dhar: Is it a right time to invest in Infra and IT stocks?

Kuchelan: It's going to be stock specific. IVRCL in the infra space. TCS and Infy (at current price).

Indrajit Ghosh: Which four midcap/smallcap stocks should I invest in for 10 years for attractive returns?

Kuchelan: Difficult to take a such a long-term call. But I believe the consumer and FMCG stocks could continue to do well, stick to the frontliners.

Chandrayee Sarkar: What about Wockhardt?

Kuchelan: The company has managed to improve its balance sheet on a great note. The performance should continue to get better over time. We suggest to buy this stock at dips.