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Business News/ Markets / Stock Markets/  Stock market today: How to tweak your portfolio before Lok Sabha election 2024
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Stock market today: How to tweak your portfolio before Lok Sabha election 2024

Stock market today: Experts see oil and gas and banking segment stocks more attractive from the valuation perspective

The Indian stock market may remain volatile for a few more sessions as the SEBI has directed Indian exchanges to go for the stress test in mid-cap and small-cap segment, say experts.Premium
The Indian stock market may remain volatile for a few more sessions as the SEBI has directed Indian exchanges to go for the stress test in mid-cap and small-cap segment, say experts.

Stock market today: After sharp selling on Monday, the key benchmark indices of the Indian stock market bounced back strongly in early morning deals on Tuesday. The Nifty 50 index opened higher at 22,334 level and went to touch an intraday high of 22,435 mark whereas the BSE Sensex today shot up to the tune of 350 points in the early morning session. Bank Nifty today gained 350 points on Tuesday deals. According to stock market experts, the Indian stock market is expected to witness such volatility as the market regulator SEBI has directed the Indian exchanges to go for the 'stress test' in mid-cap and small-cap segments. They said that current volatility is a good opportunity for investors to rejig their stock portfolio ahead of the Lok Sabha election 2024. They advised investors to look at the stocks that are still available with a high risk-reward ratio.

Lok Sabha election 2024 in focus

Advising stock market investors to take advantage of this current volatility, Sandeep Pandey, Founder of Basav Capital said, "The market regulator SEBI has directed Indian exchanges to go for the stress test in mid-cap and small-cap segment. So, such sharp selling and strong buying immediately after the sharp selling may continue for a few more sessions. As Lok Sabha election 2024 is fast approaching and most of the surveys are predicting victory for the BJP-led NDA government, this is the best time for an investor to tweak one's stock portfolio and beat the index performance over the period."

On segments where an investor can look at ahead of the Lok Sabha election 2024, Manish Chowdhury, Head of Research at StoxBox said, "We still like stocks in the oil & gas and banking sector as we believe that there is still valuation comfort in these sectors with multiple near-term tailwinds."

Is it wise to look at PSU stocks?

On whether PSU stocks could be a good bet before the Lok Sabha election, the StoxBox expert said, "We sense that all PSU stocks should not be looked at with the same glass as we feel that selective opportunities still exist in the overall space. We would advise investors to enter the PSU basket in a staggered manner and have a medium to long-term horizon in the space."

Outlook for defence, railway segment

"With regards to railways, power, and defence sectors, we feel that sometimes correction in these stocks cannot be ruled out and timely execution of projects would be crucial in sustaining the high valuations," said Manish Chowdhury of StoxBox.

Stocks to buy today

On stocks to buy ahead of the Lok Sabha polls 2024, Sandeep Pandey of Basav Capital said, "In the PSU segment, my priority sector would be the banking segment where one can look at shares like State Bank of India (SBI), Bank of Baroda (BoB), and Canara Bank. In the private bank segment, I would suggest long-term investors look at ICICI Bank and Axis Bank shares."

On PSU stock outside the banking segment, Sandeep Pandey recommended buying Hindustan Aeronautics Ltd (HAL) ahead of the announcement of the Lok Sabha election 2024 date.

In the Oil & Gas segment, Sandeep Pandey recommended buying shares of Oil & Natural Gas Corporation (ONGC), and Reliance Industries Limited.

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 making any investment decisions.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 12 Mar 2024, 10:28 AM IST
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