• Buying in stocks today: Banking and IT stocks are expected to attract FIIs coming back to Indian market after easing in dollar index, say experts
After the recent stock market crash, retail investors are busy scanning for value picks available at discounted prices. For such positional investors, stock market experts suggest looking at banking, IT and other stock market heavyweights as they have fallen at a sharp rate and there is nothing wrong with their fundamentals. He said foreign institutional investors (FIIs) are coming back and hence IT and banking stocks are expected to remain on their radar despite heavy losses in the recent sell-off.
Stock market experts said there is no banking or property bubble in India or the US, which augurs well for banking stocks. He added that FIIs also prefer blue-chip stocks and hence Reliance Industries shares can be a good bet for stock market investors who believe in getting a bargain amid falling markets.
On why one should look at heavyweight stocks from blue-chip, IT and banking segments, YES Securities report says, "FII flows are coming back to the Indian market and the best of FII flows is yet to come, for Indian equities Fag-end 2022 with positive changes." The brokerage further said that India's resilience to global turbulence is clearly visible in its outperformance. The softening of retail participation in the market (due to reduction in demat accounts) suggests that the market is not in overheated territory. In such a situation, giant stocks like Reliance Industries Limited or RIL, Bank and IT Services are looking attractive.
Advising bottom finishers to buy banking and IT stocks, Manoj Dalmia, Founder and Director, Proficient Equities said, "Neither India nor the US is facing any kind of banking or asset bubble. Hence, banks fundamentals of banking stocks are still intact and hence boosted banking. Sector shares are still up in recent sessions and they are expected to help banking stocks reduce losses at a faster pace. Hence, positional investors , who believe in bottom finishing, are advised to look at quality banking stocks in this bearish market.
Manoj Dalmiya said FIIs pulled their money out of Indian and other emerging markets after the US Fed took an aggressive stance on interest rates hike. The dollar index has now softened after the US Fed's interest rate change. He added that after the easing of the dollar index, money moving from dollar index to emerging equity markets is expected to come back to emerging equity markets as crypto currencies are also not doing well these days.
Buying in IT, bank stocks
When asked about banking and IT stocks to buy today, Manoj Dalmiya suggested Axis Bank, HDFC Bank, Mindtree and Happiest Minds stocks which could see a bottom finisher.
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