Indian Stock Market Bounces Back Strongly After Monday’s Sharp Selling; Experts Advise Investors to Rejig Portfolio Ahead of Lok Sabha Election 2024
After experiencing sharp selling on Monday, the key benchmark indices of the Indian stock market showed a strong bounce back in early morning deals on Tuesday. The Nifty 50 index opened higher at 22,334 level and reached an intraday high of 22,435, while the BSE Sensex surged by 350 points in the early morning session. Bank Nifty also gained 350 points in Tuesday’s deals.
Experts in the stock market have attributed this volatility to the recent directive by the market regulator SEBI for Indian exchanges to conduct stress tests in the mid-cap and small-cap segments. They believe that this presents a good opportunity for investors to adjust their stock portfolios ahead of the Lok Sabha election in 2024.
Sandeep Pandey, Founder of Basav Capital, advised investors to take advantage of the current market volatility, stating, “As Lok Sabha election 2024 is fast approaching and most surveys are predicting victory for the BJP-led NDA government, this is the best time for an investor to tweak one’s stock portfolio and beat the index performance over the period.”
Manish Chowdhury, Head of Research at StoxBox, recommended looking at stocks in the oil & gas and banking sectors, citing valuation comfort and near-term tailwinds. He also suggested considering selective opportunities in the PSU segment with a medium to long-term horizon.
In terms of specific stock recommendations, Sandeep Pandey highlighted banking stocks like State Bank of India (SBI), Bank of Baroda (BoB), and Canara Bank in the PSU segment, as well as private banks like ICICI Bank and Axis Bank. He also recommended buying shares of Hindustan Aeronautics Ltd (HAL) in the PSU segment outside of banking, and Oil & Natural Gas Corporation (ONGC) and Reliance Industries Limited in the Oil & Gas segment.
However, it is important to note that the views and recommendations provided by analysts or broking companies are individual opinions and not endorsed by Mint. Investors are advised to consult certified experts before making any investment decisions.
