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Worst Day In The History Of BSE Sensex And Nifty50: Stock Tips To Generate Cash Flow

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CIOInsider Team

Bengaluru, India - 10 March 2020: The BSE Sensex and Nifty50 witnessed the biggest one day fall of 2467 points on Monday. The Sensex fell by 1941.67 points whereas Nifty was down by 538 points. In terms of absolute return, it is being deemed as the worst fall in the history of both the stock markets. All in all, the Indian market wiped out around 7 lakh crores in terms of market capitalisation.

The decline was visible across various industrial sectors like capital goods, metal, energy, power, and banking stocks. There are multiple contributing factors that have led to the current predicament. Fall in crude oil prices, rising cases of Coronavirus which is threatening to disrupt the global growth and supply chains and a fall in the US Treasury Yields are some of the principal reasons for the downfall. The fall in the equity market has turned sentiments weak.

The recent fall in the Indian market can largely be

attributed to external global factors. Therefore, experts predict that once the global front is stable, the Indian market shall bottom out. One must opt for diversification to safeguard their portfolios. The fall in current crude oil prices is going to benefit the petroleum and paint companies in the market. Experts are suggesting investing in them and also on gold as well.

Here is a list of stocks chosen by stock experts in which investors could buy this Holi with an investment horizon of 1 year.

Britannia Industries: The FMCG sector is currently going through a phase of slowdown but revival is expected in the medium to long term.

Coromandel International: Coromandel International is the second-largest fertilizer company in India. With the recovery of South-West Monsoon as well as the increase in crop sowing during the Rabi season – Coromandel is well placed in the sector to capitalize on this opportunity.

Axis Bank: Axis Bank can prove out to be a good long term bet as the bank's loan growth, as well as asset quality, is increasing.

HDFC LIFE Insurance: HDFC is the biggest player among the private insurance companies as it contributes 25 percent share in the market space. The company is moving towards growth as it is showing 86 percent gains.

ICICI Bank: ICICI's pace of asset quality improvement might be slow in the short term as it has seen a rise in the pool of low corporate loans but the broader trajectory of the company remains unchanged.

Stocks like Apollo Hospital, Asian Paints Limited, Dabur India Limited, Dr. Reddy's Laboratories Limited, Indiamart Intermesh Limited, IPCA Laboratories Limited, Pidilite Industries Limited, and Torrent Pharmaceuticals Limited can be considered as good buys for the long term claims according to Gaurav Garg, Head of Research at CapitalVia Global Research Limited.

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