Behavioural biases that damage your investments!
In matters of investment, the sooner you acknowledge your mistakes, the sooner you'll find help in getting out of the soup. To break free from biases, the first step should be to identify those biases, says, Balwant Jain, Tax and Investment Expert.
Lingering concerns over rising Covid cases, inflation, and outflows by foreign institutional investors dragged the benchmark equity indices by over 2% in the current financial year. The 30-share index has corrected 1,255 points to 48,253 on May 4 from 49,509 on March 31.
Going ahead, analysts believe that the market is likely to be rangebound as the fear of the continuous rise in covid cases and extended lockdowns in various states, are likely to cap the upside. Therefore, investors should seize the opportunity to accumulate quality stocks.
Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services said, “We expect Nifty to trade in the range of 14,200-15,000 zone. So far the strong quarterly earnings season has been supportive to the market but the poor progress on the vaccination front is denting the sentiments,” he added.
With a fall of 10%, Titan Company has tanked the most in the Sensex pack. It was followed by ITC (down 9%), HCL Technologies (down 8%), HDFC Bank (down 7%) and Mahindra & Mahindra (down 7%). On the other hand, Bajaj Finserv, Dr Reddy’s Labs and Bajaj Finance have gained over 9% during the same period.
The opportunity may not last too long as market watchers are bullish on the India growth story. To help you pick the right companies, we collated a list of stocks that can give you a decent return.
Reliance Industries: Shares of the company have cracked more than 4% in FY21 so far. HDFC Securities has an ‘Add’ rating on RIL with a price target of Rs 2,285 per share. “Induction of Facebook, Google, Intel and Qualcomm as partners in Jio Platforms should help the company accelerate the growth of digital connectivity and create value in the digital ecosystem through technology offerings,” the brokerage said adding the recovery in refining and petchem businesses in FY22E, the emergence of a clear path to a stronger balance sheet and stake sale in the retail business will boost the sentiment.
Titan Company: Emkay Global Financial Services said that near-term impact on Titan due to Covid-19 restrictions, but a strong recovery in H2FY21 indicates pent-up demand and market share gains. Besides, its initiatives to accelerate growth in the wedding segment may offset most of the loss in sales ahead. Emkay has ‘Buy’ on Titan with a price target of Rs 1,725.
HDFC Bank: Japanese brokerage firm Nomura has a ‘Buy’ call on HDFC Bank with a price target of Rs 1,690, indicating an upside of over 10% from the current market price.
IndusInd Bank: Of late, analysts retained their bullish view on IndusInd Bank after its reported nearly three-fold jump in standalone net profit at Rs 876 crore for the last quarter of the fiscal ended March 2021. It had posted a net profit of Rs 301.84 crore in the corresponding quarter of 2019-20.
Anand Rathi Share & Stock Brokers set a target price of Rs 1070 post Q4 results, indicating an upside of over 10% from Tuesday’s closing of Rs 934.95. The scrip traded 1.13% higher at Rs 954. Shares of IndusInd Bank have declined nearly 5% in FY21 till date.
Nestle India: KR Choksey Shares and Securities is positive on the FMCG major with a price target of Rs 19,640. “Nestle India has performed relatively better with sustained growth in the volume and product mix. Amidst lockdown, we expect the growth momentum to continue in the near term, especially for its ready to cook products. However, the management foresees higher commodity prices to continue which might affect the margins which we feel is the area of concern,” the brokerage said.