Axis Bank, HDFC Bank to RIL: Experts recommend 5 heavyweight stocks to buy

Stock market experts added that there is no banking or property bubble in India or the US, which augurs well for the banking stocks. They said that FIIs prefer to blue-chip stocks as well and hence Reliance Industries shares can be a good bet for those stock market investors who believe in bargain hunting amid falling markets.

On why one should look at heavyweight stocks from blue-chip, IT and banking segment, Yes Securities report says, “FII inflows are returning to Indian market and the best of FII flows are yet to come, with their positive shift for Indian equities in the fag-end of 2022.” The brokerage further added that India’s resilience to global turbulence is amply manifested in its outperformance. The moderated retail participation in the market (owing to decreased demat accounts) suggests that market is not in an overheated zone. In such a scenario, heavyweight stocks like Reliance Industries Ltd or RIL, banks and IT Services look attractive.

Advising bottom finishers to buy banking and IT stocks, Manoj Dalmia, Founder & Director at Proficient Equities said, “Neither India nor US is facing any kind of banking or property bubble. So, fundamentals of banks are still intact and hence triggers that fueled banking sector stocks in recent sessions are still existing and they are expected to help banking stocks pare the losses at rapid speed. So, positional investors, who believe in bottom finishing, are advised to look at quality banking stocks in this bear hit market.”

Manoj Dalmia said that FIIs fish out their money from Indian and other emerging markets after US Fed went hawkish on interest rate hike. As dollar index has now eased after change in US Fed’s tome on interest rates. He said that after ease in dollar index, money that moved from emerging equity markets to dollar index is expected to come back to emerging equity markets as crypto currencies are also not doing well these days.

IT, bank stocks to buy

Asked about banking and IT stocks to buy today, Manoj Dalmia suggested shares of Axis Bank, HDFC Bank, MindTree and Happiest Minds that a bottom finisher can look at.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.