How should retail investors approach the market? - Part II

Share Khan

RECOMMENDATIONS HDFC Bank, HDFC Ltd, Bharti Airtel and L&T

“The market is currently in uncharted territory. The environment is still not conducive for aggressive investment. Investors should maintain good cash levels. They should only buy frontline stocks; and it should be purely on the basis of valuations and outlook. We only recommend companies with sound structure, quality management and reasonable leverage on their books.”

India Infoline

RECOMMENDATIONS SBI and Bank Of India

“We’ll not advise investors to buy at this time. They should wait for the market to stabilise a bit, even if it means buying at 5-10% higher price. Investors who are willing to go long term on their investments can go in for FMCG stocks.

How should retail investors approach the market? - Part I

Religare Securities

RECOMMENDATIONS HDIL, Chennai Petroleum, SBI, L&T and Thermax

Small retail investors should analyse their portfolios closely. They should put their money in companies that satisfy three of the following four conditions - companies with positive free cash flows, good operating cash flows, low debt-equity ratio or high dividend yield

RECOMMENDATIONS Tata Steel, Castrol, Bayer Cropscience, Aventis Pharma, Nestle and HLL

Networth Stock Brocking

We’re taking a contrarian call on commodity stocks now. The global base metals index has been trading 5-7% over the past few trading sessions. From what we see, there could be a bounceback in commodities. Our advice to investors is to buy steel, metals and mining stocks. On pure fundamental basis, certain MNC stocks are good buys in these times. Companies like Castrol or Bayer Cropscience have good operating cashflows and very less of debt on the their balance sheets.”

Angel Broking

RECOMMENDATIONS Axis Bank, HDFC Bank, Bharti Airtel, Infosys and Satyam.

Investors should keep investing in markets in small lots. We like banking stocks, especially after the recent rate cuts.