Brokerage firm Motilal Oswal Financial Services has said that it remains biased towards large-caps as market turmoil continues and has recommended 12 stocks that investors can look at.
Indian equity markets have fallen more than 5 percent this year due to concerns surrounding the Russian invasion of Ukraine and the prospects of the US Federal Reserve raising interest rates sharply.
The threat of a possible escalation in Eastern Europe due to Russia-Ukraine war has investors on tenterhooks. Individual stocks listed on the National Stock Exchange have seen an average correction of 25-30 percent since the beginning of November due to a recalibration of valuations by investors.
In February alone, benchmark equity indices fell more than 3 percent, marking the second successive month of losses.
“The healthy earnings visibility can act as a cushion in an otherwise fragile external situation,” the brokerage firm said in a note.
Also read: Russian forces shell Ukraine's No. 2 city and menace Kyiv
Motilal Oswal Financial, however, warned that if the crisis in Ukraine prolongs, it could lead to cut in the earnings estimate of Nifty 50 companies due to the impact of higher energy costs.
“However, close to two-thirds of Nifty earnings are insulated from elevated energy prices, while one-third is adversely impacted,” the brokerage firm said.
For the latest on the Russia-Ukraine war, follow our live blog
Investors should focus on stocks where earnings visibility is solid, pricing power healthy and the recent correction has led to moderation in valuations, Motilal Oswal Financial said.
Following are its 12 preferred largecap picks, which have corrected more than 10-20 percent from their 52-week highs:
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