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Stay with winners! Sensex loses 1000 points in a week; top 40 stocks which rose up to 30%

The valuation of India market still remains to be rich; hence, any correction owning to global volatility should be used as a buying opportunity to dig into quality stocks.

February 10, 2018 / 10:29 IST
     
     
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    The S&P BSE Sensex lost over 1,000 points while the Nifty50 dropped a little over 300 points in a week marred by global volatility but there were plenty of stocks which braved the fall.

    The correction which started from New York extended to Japan, China and then to the Indian market. The S&P BSE Sensex plunged 3 percent translates into the worst decline since August.

    The market continued to witness selling pressure throughout the week largely on the concern of higher inflation, potential tightening of liquidity, rising bond yields and sell-off in global markets.

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    The valuation of India market still remains to be rich; hence, any correction owning to global volatility should be used as a buying opportunity to dig into quality stocks. Corrections will help bring some stability to the valuations front as well.

    “Current decline was due to mixed emotions of all LTCG, global sell-off, and overvaluations. At this steep correction, we think it is time to add some of the quality stocks like Himadri Chemical, Graphite, Rain industries in Chemicals sector which have corrected a lot and there is a huge potential left,” Chirag Singhvi of KIFS Trade Capital told Moneycontrol.

    “Dalmia Bharat, L&T, TCS are the pioneer in their industry and a good buy at the current market price for value investing. Titagarh Wagons is available at cheap valuations with the good dividend yield, he said.

    There were plenty of stocks from the S&P BSE 500 index, the S&P BSE Midcap index and the S&P BSE Smallcap index which braved the fall and rose up to 30 percent in a week which spelled ‘Bloodbath’.

    The benchmark indices lost 2.8 percent for the week ended 9 February; however, some buying interest was witnessed in the mid & small cap stocks post a recent sharp correction.

    Plenty of stocks in the S&P BSE Smallcap index rose up to 30 percent which includes names like Surya Roshni, followed by Excel Industries, Bombay DyeingLumax Industries, FDC, Arshiya, Gulf Oil etc. among others.

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    In the S&P BSE 500 index Bajaj Electricals, HEG, Rain Industries, Fortis Healthcare, Jet Airways, 8K Miles, Shankara Building Products, SAIL, Polaris Consulting rose 10-20 percent in the week gone by.

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    In the midcap space, Reliance Capital put out a strong show post Q3 results. The stock closed the week with gains of 13 percent, followed by Bharat Forge which gained 10 percent, Ashok Leyland rallied 10 percent in the same period.

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    Kshitij Anand
    Kshitij Anand is the Editor Markets at Moneycontrol.
    first published: Feb 10, 2018 10:27 am

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