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Want to make quick money amid coronavirus crisis? Axis Securities lists top short-term picks

Updated : 2020-03-27 13:08:27

Despite rising around 15 percent in the last 3 sessions, the benchmarks are still down 25 percent for the month amid the coronavirus crisis. So should investors buy? According to Axis Securities, while the valuations are attractive across the board, picking the right stocks for the short term as well as the long term will lead to significant wealth creation. "It is intuitive to say that the time to sell in the market is passed as valuations have compressed significantly. While examples of previous crisis present that there is further correction left in the market but it can also be observed that bounce-backs also tend to be very sharp," the brokerage pointed out. It further advised that the portfolios should be realigned according to the market conditions which means that many stocks must still be sold and quality should be bought. Here are its top short- term picks under these market conditions:

 Hindustan Unilever:  Rationale - The business impact will be limited on the stock. - The stock has seen a significant correction. - The stock will protect capital but also generate reasonable returns.
Hindustan Unilever: Rationale - The business impact will be limited on the stock.
- The stock has seen a significant correction.
- The stock will protect capital but also generate reasonable returns.
 ITC : Rationale -25 percent RoE franchise with a dividend yield of 7 percent at current levels. - High-quality stock from a capital protection and value creation perspective.
ITC: Rationale -25 percent RoE franchise with a dividend yield of 7 percent at current levels.
- High-quality stock from a capital protection and value creation perspective.
 Infosys : Rationale -Stock has seen significant correction from the peak. - The company has a solid business and offer decent growth potential. - Stock will provide benefits of capital protection as well as appreciation.
Infosys: Rationale -Stock has seen significant correction from the peak.
- The company has a solid business and offer decent growth potential.
- Stock will provide benefits of capital protection as well as appreciation.
 ICICI Bank:  Rationale - Deep correction but will be solid stock when the market bounces back. - The stock will quickly erase the losses as it has a strong retail book.
ICICI Bank: Rationale - Deep correction but will be solid stock when the market bounces back.
- The stock will quickly erase the losses as it has a strong retail book.
 Bharti Airtel : Rationale - Business impact on account of COVID19 will be limited. - Good stock for capital protection and long-term growth.
Bharti Airtel: Rationale - Business impact on account of COVID19 will be limited.
- Good stock for capital protection and long-term growth.
 Manappuram Finance : Rationale - Solid gold loan franchise available at 6x PER. - Stock appreciates very fast as the market will settle.
Manappuram Finance: Rationale - Solid gold loan franchise available at 6x PER.
- Stock appreciates very fast as the market will settle.
 TCS : Rationale - Currency depreciation, no leverage and exposure to developed markets work in TCS favour. - While growth is a challenge, the stock will deliver reasonable capital appreciation as well as capital protection.
TCS: Rationale - Currency depreciation, no leverage and exposure to developed markets work in TCS favour.
- While growth is a challenge, the stock will deliver reasonable capital appreciation as well as capital protection.
 Maruti Suzuki : Rationale - Low fuel prices, lower interest rates, all work well for Maruti. - The stock will see a solid bounce-back as the market revives.
Maruti Suzuki: Rationale - Low fuel prices, lower interest rates, all work well for Maruti.
- The stock will see a solid bounce-back as the market revives.
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