India’s stock market is witnessing a volatile phase, the sluggish returns and complex political situation has endangered the stock market further with a lot of volatile stocks.
The inflows into domestic equity mutual funds have declined for the third month to Rs 6158 crore in January as compared to Rs 6,066 crore in December and Rs 8,414 crore in November. However, there are some tiny that refuses to die down irrespective of the weathered conditions.
Arvind Textiles Limited (NSE: ARVIND)
Due to the ongoing global recession, the Indian textile industry has witnessed a large pressure. The company has been under stress due to the uncertainties regarding demerger. However, the recent news about demerger has made Arvind textile a manufacturing company that produces denim fabrics and garments. According to the reports, the company’s capex is expected to grow at Rs 15,000 crore during the next three years and its revenue is registered at 12% between 2018-19 and 2021-22 from 6%.
Hindalco (NSE: HINDALCO)
The metal sector has undergone through a turmoil phase after China skimmed down its production capacity, thus putting pressure on the domestic metal sector, but after the budget announcement the optimism has prevailed.
Further, India Ratings and Research have cleared that domestic aluminum prices are expected to remain stable, despite a decline in demand for zinc prices because of an increase in global supply. In this scenario, Hindalco seems to be a good bet to invest in.
IDBI Bank (NSE: IDBI)
The bank is witnessing a down phase after the Vijay Mallaya’s fraud case. The bank is streamlining its cost of operations by shutting down the guest houses that were once used by the employees for recreational purposes.
However, its recent takeover by LIC has given the stock much- needed uplift. Right now, we can say that this risky stock has the potential to pay huge returns.
Bharat Electronics Limited (NSE: BEL)
Most of the capital goods firms have been penalized by the stock market. However, Bharat Electronics is doing better business because it caters to a relatively better segment. The company has reported profits of Rs 12.5% YoY to Rs 340.7 crore. Recently, The company has finalized Rs 700 crore contract with Navy for establishing Naval Airfield Integrated security system. This strengthens us our trust in this stock.
Tata Motors (NSE: TATAMOTORS)
Despite economic slowdown has started affecting the luxury vehicles; Tata Motors has emerged to be one of the global auto majors that had proved its mettle. While its brand Jaguar Motor declined by 16%, due to weak demand in India.
However, the company managed to boost its sales in other markets like North America, EU and UK. Its new car Range Rover Evoque is expected to launch in 2019 and is likely to boost the share price in the coming years.
Volatility is good for investors who are risk takers. Risk averse investors may choose to stay away from such stocks.
Disclaimer: This article does not constitute as a financial advice. Investors must perform their own research before investing.
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