It is not as if all Sensex companies are great bets. Some shares like metals have long underperformed the Sensex, sometimes giving no returns at all. However, there are some that have been eternal favorites. Here are 7 Sensex stocks that you should own.
Once this was a stock that was under owned by Foreign Portfolio Investors. However, those who have patiently invested in the company are slowly reaping rewards.
The company's petchem margins are rising and so are the gross refining margins. Its investments in retail are now beginning to bear fruits. The big commercial launch of Jio should be the next big trigger for the stock.
Reliance is a good stock to own, if you have a long term perspective in mind. The shares were last trading at Rs 1017 on the BSE.
This stock is owned by most of the large cap mutual funds in the country.
If you check the portfolio of any large cap mutual fund, HDFC Bank would be right there on top. One fails to understand how a stock can show consistent 20 per cent and more growth every quarter, quarter-on-quarter.
A low level of NPAs, when the banking sector is under NPA stress has made this an eternal favorite of fund managers.
The bank shares are currently trading at Rs 1247, which is a new 52-week high.
Tata Motors DVR
Tata Motors DVR is trading at a steep discount to the Tata Motors shares. The DVRs are trading at Rs 320, while the shares are trading at Rs 505.
The only difference between a DVR and a share is the voting rights. A DVR has far lesser voting rights as compared to shares. But, for that such a steep discount.
In addition, you get an extra 5 per cent dividend as compared to shares, if you buy the DVRs. Tata Motors owns the prestigious Jaguar Land Rover range and is gradually growing its market share in places like the US. The shares are likely to do well and are a good pick.
We believe that at some stage crude prices will rally and so will the share prices of ONGC. The stock is a good play on crude prices. At Rs 220, the stock's dividend yield is 3 per cent and that too tax free.
The stock is quoting below its book value and hence is a good pick at the current levels.
Larsen and Toubro
This again is a top stock to own. Its value in subsidiaries like L&T Infotech and L&T Finance is worth a lot.
Funds like HDFC Equity which is one of the largest large cap mutual funds in the country has it among its top 5 portfolio along with many other fund houses. The stock of Larsen and Toubro was last seen trading at Rs 1520 on the NSE.
The company enjoys a dominant position in the EPC space and that position is likely to remain for many years to come.
This bank is very much like HDFC Bank. It has a solid retail portfolio and very low non performing assets. It is not only a favorites of mutual funds, but, also of FIIs. The stock is last trading at Rs 1187 on the NSE.
Infosys is a stock that reported a slightly lower than expected performance this quarter. This is another favorite with fund managers, though not the biggest bet like HDFC Bank. A highly transparent company, something that many investors like. If you are looking at an IT stock, Infosys could be it.
The stock of Infosys was last trading at Rs 1072 on the NSE
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