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Business News/ Markets / Stock Markets/  Stock market dips on HDFC twins rebalancing. Experts recommend these stocks to buy on Monday

Stock market dips on HDFC twins rebalancing. Experts recommend these stocks to buy on Monday

Stocks to buy next week: Experts advised stock specific approach to mint money from Dalal Street

HDFC twins rebalancing by MSCI is expected to erode p to $200 million from the merged entity, believe experts.Premium
HDFC twins rebalancing by MSCI is expected to erode p to $200 million from the merged entity, believe experts.

Stocks to buy on Monday: Indian stock market, especially key benchmark indices — Bank Nifty, Sensex and Nifty — witnessed strong selling pressure on Friday after financial index provider MSCI declared HDFC twins share price rebalancing. Nifty 50 index corrected 186 points and closed at 18,069 levels, 30-stock BSE Sensex nosedived 695 points and closed at 61,054 mark whereas Bank Nifty index crashed over 1000 points and ended at 42,661 levels. However, in this sell off triggered by weakness HDFC twins share price, auto and other stock market heavy weights like Titan Company, ICICI Bank, Axis Bank and State Bank of India (SBI) stood firm and close more or less close to its Thursday close price. In fact, Titan share price ended with more than 2.30 per cent intraday gain on Friday.

According to stock market experts, some stocks witnessed big upside and gave breakout during the weekend trade session. They advised stock market investors to maintain stock specific trade as Indian stock market is expected to remain volatile ahead of the May index review by financial index provider MSCI.

Stock market strategy after HDFC twins rebalancing

Speaking on HDFC twins rebalancing impact on Indian stock market, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Ahead of MSCI May index rebalancing, such short term triggers are expected to hit some Indian stocks for short term. But, overall fundamentals of the Indian stock market is very strong as Q4 numbers of even HDFC twins are better than market expectations. So, these short term triggers pulling down Indian stocks should be seen as opportunity to buy by positional medium to long term investors." He advised positional investors to look at quality banking, auto and capital goods stocks to buy when Indian stock market opens on Monday.


Unveiling stock market strategy in the wake of HDFC twins rebalancing, Aditya Gaggar, Director at Progressive Shares said, "Due to MSCI rebalancing, HDFC twins witnessed selling pressure on Friday trade session, which led to trend reversal on Dalal Street on the weekend session. But, under the leadership of the Auto and other heavyweights such as Titan/ ICICI Bank/SBIN recovery was seen."


On sectors that can be look at after stock market fall on HDFC twins share price rebalancing, Arvinder Singh Nanda, Senior Vice President, Master Capital Services said, "Benchmark indices fall over 1% as HDFC twins dragged after MSCI said it will add HDFC Bank Ltd. to the large-cap segment of MSCI Global Standard Indices after the merger with HDFC Ltd. with an adjustment factor of 0.5 Vs the market expectation of 1. The inclusion will lead to no additional inflows, rather it will be led to a slight outflow of up to $200 million. On sectoral front, Nifty Auto and Nifty Midcap 100 Index gained the most this week, while Nifty Bank was the worst performer of the week."

Buy or sell stocks

On stocks to buy on Monday when Indian stock market opens, Avinash Gorakshkar said, "Ashok Leyland and Mahindra & Mahindra (M&M) can be added in portfolio as these stocks are expected to give sharp upside movement once the market comes out of the HDFC twins sell off pressure. Similarly, in banking segment, one can buy HDFC Bank, ICICI Bank and Axis Bank shares for medium to long term."

On stocks to buy on Monday, Aditya Gaggar of Progressive Shares listed out the following stocks to buy next week:

Escorts: Following the frontline auto stocks, the sector is about to give a much-awaited consolidation breakout. Escorts shares have given Flag & Pole breakout on chart pattern.

Kotak Mahindra Bank: This banking stock is on verge of consolidation breakout and we can expect sharp upside movement in Kotak Mahindra Bank shares after this much awaited breakout.

The Progressive Share expert went on to add that two OMC stocks — IOC and BPCL have given breakout and one can look at these two stocks for better returns in upcoming sessions. He said that BPCL share price has given 'Inverted Head & Shoulder' breakout whereas IOC has given 'Falling Channel' breakout on chart pattern.

The technical expert went on to add that PSE has given an all-time high breakout and many of the components have also given a strong breakout and advised positional investors to look at BEL, PFC, Power Grid and REC shares when trading activities resume on Dalal Street next week.

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.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 06 May 2023, 02:00 PM IST
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