Forbes India magazine had recently published a list of 20 stocks to buy. These stocks could prove winner in stock market.
The Indian stock market took a severe beating last year. Valuation benchmarks were so distorted that even penny stocks began to look respectable in comparison to mid cap stocks and small cap stocks. So how do you get the juicy stocks and avoid the dregs?
Remember that the financial crisis, like Swine flu, came from foreign shores. So avoid stocks with global linkages, mostly. Go for companies that feed off domestic demand.
Thus, the prospects for automobile companies may look better if they continue to get access to cheap raw material. But that may not be the case for metal and oil suppliers, who still suffer the overhang of poor prices globally. We think four themes act as superb filters to get to the cream. Within these four themes, we have picked companies that have high return on capital employed, profit and revenue growth along with a strong connection to the domestic market. This is by no means an exhaustive list. In our judgment, the companies we’ve selected exemplify the kind of plays investors will benefit from. There may well be several other stocks among the 4,000-odd listed companies that could qualify to be selected under each of these categories.
This list is designed to offer a variety of opportunities for both the long-term value investor as well as those with a slightly higher risk appetite.
Checkout the list classified under various heads of top stock picks from Forbes India.
Consumer Durables (FMCG Sector) Stock Picks
Infrastructure Sector Stock Picks
Banking, Insurance, Retail and Airlines Stock Picks
Volatile & Trading Stocks For Short Term Gains
You may want to checkout: Stock Market in 2009 - Stocks to Buy
Source: Forbes Business Magazine
