Markets have fallen sharply in the last few days with the Sensex now set to retreat below the 27,000 points mark as falling oil prices lead to a decline in global markets. In fact, from high levels of Rs 28,700, the Sensex is now at 27,100 points, adrop of 1600 points. Brokers are saying that it is a good time to accumulate stocks after a steep fall in the Sensex and the Nifty. Here are a few stocks that you can buy.
Several brokerages are recommending buying the stock of ICICI Bank. For one the stock split has made the stock much cheaper from levels of Rs 1700 to levels of around Rs 337. This will improve liquidity in the stock. Also, analysts believe that there is sure to be interest rate cuts going ahead and this would benefit banks like ICICI Bank.
Infosys has fallen in the last few days after TCS announced that the quarter ending December could be a weak one. In fact, Infosys has also fallen after reports that promoters of the company have sold a stake in the company to utilize the money for philanthrophic purposes. This has led the stock lower, which makes it an attractive buy. The rupee has now depreciated from levels of Rs 60 a few months ago to the current levels of Rs 63. This is likely to improve the profitability of the company.
Cox and Kings
Sharekhan is bullish on Cox and Kings and has recommended a buy on the stock. The firm believes that Cox and Kings has already reduced its debt and is planning to reduce it even further which should boost net profits in the years to come. The research firm believes that the capacity utilisation at the education and Meininger businesses is expected to improve in the coming years.
The stock is currently trading at 11.4x its FY2016E earnings and EV/EBIDTA of 8x. We maintain our Buy recommendation on the stock with a price target of Rs 395", says Sharekhan research report.