SIP in these stocks can help you make the best of unpredictable market

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With the second wave of coronavirus pandemic, the benchmark equity indices BSE Sensex and NSE Nifty have plunged over 8% from their all-time high levels scaled in February this year. If you want to tide over the ongoing market volatility, systematic investment plan (SIP) in stocks can help you to accumulate wealth in the long run. According to HDFC Securities, a stock SIP is a superior way to invest systematically. It enables investors to buy stocks (amount/quantity based), periodically (weekly, monthly, etc.) in a systematic manner.

“It is the ideal method of investing for long term investors. It helps you make the best of the unpredictable market by adopting a disciplined investment strategy,” the brokerage said. It also recommends 21 stocks in which you can start an SIP. Have a look:

Reliance Industries: Reliance Industries (RIL) is one of the largest private sector companies in India with businesses in telecommunication, petrochemicals, refining, textiles and retail. It has a strong market position and operates its petrochemical plants at full capacity. RIL has a market capitalisation of more than Rs 12 lakh crore, becoming the first Indian company to reach the milestone. The company is hiving off its oil-to-chemical (O2C) business into a separate subsidiary — Reliance O2C Ltd.

Infosys: Infosys is a leading provider of consulting, technology, outsourcing and next-generation digital services, enabling clients to execute strategies for their digital transformation.

Hindustan Unilever: HUL is India’s largest FMCG company and a subsidiary of Unilever Plc (that holds a 62% stake in HUL), the world’s largest consumer goods company present across 190 countries. HUL has a very well-diversified portfolio under Home Care (HC), Beauty & Personal Care (BPC), and Food & Refreshments (F&R) categories. It is the number 1 household care company in India with revenues growing at 10% CAGR and profitability growth of 3.6x (FY13 to FY19).

ITC: ITC is a market leader in its traditional businesses of cigarettes, paperboards, packaging and agri-exports. It is rapidly gaining market share even in its nascent businesses of packaged foods and confectionery, branded apparel, personal care and stationery.

ICICI Bank: ICICI Bank has transformed itself from a corporate-focused bank to a retail bank in the last 5 years. The focus of the management has shifted to lower risk retail loans to increase granularity in the lending book.

SBI: State Bank of India is India’s largest domestic bank and a market leader in retail advances. It has an extensive network of around 22,000 branches and over 58,350 ATMs.

Larsen & Toubro: L&T is the foremost player in the infrastructure and engineering space in India and holds interests in technology and financial services as well.

Sun Pharmaceutical: The company is the largest Indian pharma company, with an impressive track record of organic and inorganic growth. The company is ranked number 1 in India with around 8% market share in the Indian Pharma Market (IPM).

Other companies: HDFC Securities also recommended Bajaj Auto, HDFC Life Insurance Company, Dabur India, Dr Reddy’s Laboratories, Mahindra & Mahindra, Tata Motors, GAIL, Aurobindo Pharma, NMDC, ACC, Hindustan Petroleum Corporation, Tata Power and Birla Corporation for long-term SIP.