Stocks to buy for long term: BEL, Reliance to SJVN — experts pick 10 fair-valued shares despite weak Indian stock market | Stock Market News

Stocks to buy for the long term: The Indian stock market has remained a ‘sell on rise’ market for the last six months. After climbing to a new peak of 26,277 on 26 September 2024, the frontline index finished at 22,397 on Thursday last week, logging 3,880 points or 14.75% dip from the lifetime high. The BSE Sensex hit a new peak of 85,978 on 26 September 2024, and the 30-stock index ended at 73,828 on Thursday last week, recording 12,150 points or around a 14.15% dip from the record high. The Bank Nifty index retraced from its lifetime high of 54,467 to 48,060 levels, logging 6,407 points or 11.75% dip from the record high. The BSE Small-cap index crashed over 24% in the broad market, while the S&P BSE Mid-cap index nosedived 21.40% from their respective peaks.

According to stock market experts, the Indian stock market has shown resilience despite weak global market trends caused by the US stock market crash. They said that quality stocks on Dalal Street are currently available at discounted prices, and long-term investors have an excellent opportunity for stock portfolio rejig. They advised investors to look at stocks available at or around fair value.

Speaking on the Indian stock market, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, “The domestic market fluctuated due to global economic trends, US trade policy concerns, and sector-specific movements. Positive global cues, strong PMI data, and rallies in metals, PSU banks, and IT fueled a mid-week recovery. However, gains were reversed later due to selling pressure in financial stocks amid renewed tariff concerns. Despite external challenges, the Indian market showed resilience, with investors watching global trade and domestic economic data closely. The week reflected optimism about growth but caution due to global uncertainties.”

Stock market next week

On the outlook of the Indian stock market, SBI Securities said, “We continue to remain cautiously optimistic due to the recent recovery and valuation easing. Investors should stick to quality businesses with supportive valuations for medium—to long-term investment horizons.”

Expecting liquidity inflow to rise on Dalal Street, SBI Securities said, “The US inflation rose 2.8% YoY and 0.2% MoM against a forecast of 2.9%/0.3%, respectively. The US 10-year yield, which was stable at the beginning of the week, rose to 4.31% following the CPI report, while the Dollar index remained below 104 levels during the week. Back into the Indian market, India’s CPI data eased to a 7-month low of 3.6% in Feb ’25, compared to an expectation of 4.0%, which was largely driven by lower food prices. This raised hopes of further rate cuts by RBI in its upcoming policy meeting in April. IIP print was at an 8-month high of 5.0% in Jan ’25 vs 3.5% in Dec ’24. Regarding liquidity, FIIs net sold ₹6,423 cr while DIIs net bought ₹3,776 cr (DII data till 12th March) in the cash market during the week.”

“Next week will be a crucial one from a macro event point of view as FOMC will meet to decide on the interest rate. Fed rates are expected to remain unchanged in the upcoming meeting, and the focus will stay on the Fed’s commentary on inflation and economic outlook. India wholesale price inflation for Feb ’25 will also be in focus next week. Apart from the macro events and economic data releases, the focus will continue on Trump’s tariff tantrums. We remain cautiously optimistic about the market due to the recent recovery and the valuation easing. Talking about crucial levels, the Nifty 50 index is likely to face an immediate hurdle at 22,670-22,700 as this zone marks a crucial resistance with the 20-day EMA and the 38.2% Fibonacci retracement level of its prior downward journey (23,807-21,965) is placed in that region. However, if the index surpasses this resistance, it could extend the up-move towards 23,000-23,300 levels in the coming sessions. While on the downside, the 22,300-22,200 zone is likely to provide a cushion in case of any immediate decline,” SBI Securities said.

Stocks to buy for long term

Seema Srivastava of SMC Global Securities advised investors to buy available stocks at or around fair value. She said, “Investors are advised to focus on fundamentally strong companies amid ongoing market volatility such as Sapphire Foods India Limited, Lemon Tree Hotels Limited, JSW Steel, Bank of Baroda, UPL Limited, SJVN Limited, Axis Bank Limited and Bharat Electronics Limited.” She said KEC International and Reliance Industries Ltd (RIL) shares also look good after the recent sell-off.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.