Currently most of the investors are staying away from market. Negative sentiment is high and most of the retail investors are too scared to enter the market. A lot of them are already sitting on high loses. FII selling is on its high and there have been Analysts who have predicted Sensex to fall under 16000. Even the experts appearing on TV channels who were giving buy calls till a month back have started giving sell calls now..
But we differ in opinion. While we did not give any buy call for several past month, we consider the current time as best to start accumulating the largecap stocks that you like. But don’t spend all of your cash to buy stock just now. We recommend buying slowly for next 2-3 months.
The point is that Nodoubt we are in the time of uncertainty and Euro Zone troubles are not settled and will not settle anytime soon. The current negative sentiment may play its role for another month or so but slowly the domestic situation will start improving. We have already seen signals like inflation easing, poor IIP numbers and willingness of Government to go for reforms. While Poor IIP numbers in not a good news in itself but it will pressurise RBI to stop increasing CRR but rather it is likely to stop now and a cut CRR later in March or so.
Even if this does not happen, still there is a limited downside as valuations are already looking attractive and there will be many buyers at lower levels.
Our advice to readers of this blog is to start buying for investment purpose. To start, buy bluechip stocks as these will be the stocks that will gain immediately after the sentiment improves. Some of the top stocks on our watchlist are:-
- Amara Raja Battery
- Havells India
- IndusInd Bank
- Force Motors
- Jubilant Foodworks
- Mahindra Satyam
- Maruti Suzuki
- Shriyas Shipping.