The Sensex hit a 13 month low on Wednesday and several banking stocks have plunged. Some of them have hit their 52-week lows and are looking attractive at the current levels. Here are 5 stocks that investors could buy keeping a long term perspective in mind.

State Bank of India

Tata Motors

Shares in Tata Motors has fallen dramatically from levels of Rs 600 to the current levels of Rs 325. At the current levels worries of growth of JLR in China could be factored into the price. From here on the downward risk to the stock looks minimal. Falling commodity prices could help margins and growth in the domestic economy could help boost HCV, LCV and passenger car demand.

ICICI Bank

ICICI Bank shares also hit a 52-week low. The stock ended the day at Rs 263 on the National Stock Exchange. Like State Bank of India the bank will benefit from reduction in interest rates and a revival in growth of the economy. Non performing assets may have peaked and going forward should the economy recover we could see better prospects for the bank.

NMDC

NMDC is a cash rich dividend paying company. In fact, the share price has fallen to Rs 100 and the company declares a dividend of Rs 8.5 per share. The dividend yield itself works out to 8.5 per cent, which is higher than bank deposit interest rates. In fact, dividends are tax free, unlike interest from bank deposits which are taxed.

A revival in demand due to the government's boost to infrastructure could help increase demand for the company's iron ore business. A good buy at the current levels.

Larsen and Toubro

Shares in Larsen and Toubro have also seen a sharp down slide in the last one month. In fact, the share has lost almost 20 per cent from a peak price of Rs 1893. At the current price of Rs 1530, the stock looks attractive for a number of reasons.

One is that the government plans to give a big boost to infrastructure, which should benefit a company like Larsen and Toubro. Apart from this the mega cities and other highway projects planned by the government could see the company being a direct beneficiary.

Not a bad bet considering the stock has lost almost 20 per cent from peak levels.

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