Buy on dips? Analysts suggest these 10 stocks

Benchmark equity indices Sensex and Nifty cracked over 2% on Monday as a spike in domestic coronavirus cases and fresh curbs imposed by Maharashtra dented the investor sentiment. The 30-share index Sensex tanked 1,256 points, or 2.51%, to 48,772 in the morning trade on April 5. Likewise, the NSE Nifty index was down 354 points, or 2.38%, at 14,512.

However, D-Street analysts are betting on robust earnings growth in FY22 and FY23. Considering the present market scenario, AK Prabhakar, Head of Research, IDBI Capital Markets said, “The ongoing financial year will see stock-specific ideas outperforming broader markets in a meaningful manner. Investors can consider stocks like Alembic Pharma, Bayer Corp, Jonhson Control Hitachi, Nestle and HDFC Life Insurance.”

Rusmik Oza, Executive Vice President, Head of Fundamental Research, Kotak Securities advised investors to consider SBI Life Insurance, Bharti Airtel, L&T, Kalpataru Power Transmission and Escorts for superior returns.

On the macro-economic front, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) fell from 57.5 in February to a seven-month low of 55.4 in March. However, the latest reading was indicative of a substantial improvement in the health of the sector that outpaced the long-run series average.

Meanwhile, GST Revenue collection for March 2021 has set a new record with the highest-ever collection of Rs 1,23,902. The GST revenue collected in the last month is 27% higher than that collected in March last year.

The Finance Ministry has informed that GST revenues of March are the highest since the introduction of Goods & Services Tax in the country. During the month, revenue from import of goods was 70% higher and the revenues from the domestic transaction are 17% higher than the revenues from these sources during the same month last year.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “The fundamental factors influencing markets are changing fast. There are both positives and negatives. On the positive side, the better than expected job numbers and economic recovery in the US is a big positive. This will support global growth, which, in turn, will be a boost for stock markets. On the other hand, back home in India, the fast-rising Covid cases is a cause of concern. Restriction of economic activity in many areas might impact growth recovery. But, as of now, there are no signs of a slowdown in the economy. Macro numbers like GST collection and auto sales numbers in March indicate a strong economic rebound. Q4 results will be very good and this can impart resilience to markets. How the Covid cases pan out, going forward, is a crucial factor.”

On the other hand, Gopal Kavalireddi, Head of Research, FYERS said, “India is standing at the threshold of immense growth. Investors should take advantage of this evolving prospect and opt for equities, across mid and smallcap companies. Be patient to deploy capital, as volatility and sharper dips will provide the right entry points during the course of the year.”