3 Stocks You Must Buy During A Market Meltdown

Markets are becoming seriously jittery, thanks to Russia-Ukraine tensions and rising interest rates. Investors continue to worry that soaring oil prices would further feed into inflation. Here are stocks that you must buy during a market meltdown.

3 Stocks You Must Buy During A Market Meltdown

The HDFC group companies have come under some serious selling pressure in the last few months. This has largely to do with large scale ownership in these set of stocks by Foreign Portfolio Investors, who have been selling Indian stocks like never before.

Some of these investors are moving money to China, while others are moving money back on rising bind yields.

Nontheless, HDFC is heavily owned by FPIs and this has put some serious pressure on the stock. However, there is tremendous value in the stock.

The housing finance institution owns 21% of HDFC Bank and has significant stakes in HDFC Life, HDFC Ergo, HDFC AMC etc. The core business is trading at a p/e of just 15 times. We believe this is a stock that you should buy on every market fall. Over the last few decades it has generated handsome returns for investors and the trend is unlikely to change.

The shares of HDFC were last seen trading at Rs 2347 on the NSE. 

Oracle Financial

This is another stock that we like for a number of reasons. The stock is debt free and is a subsidiary of Oracle Corporation, US. However, the best part is that the stock is available with a dividend yield of 5.6%, which is not bad for an MNC Stock.

The company provides software for the banking and insurance sector. For the nine month period ending Dec 31, 2021, the company reported an EPS of Rs 148 and is on track to report an EPS of Rs 200 for this year. Discounting the same like some of the other IT peers of 22 to 25 times, the stock should trade near the Rs 4400 to Rs 5000 mark. At Rs 3500, the stock is cheap to buy. In fact, the stock has hit a 52-week high of more than Rs 5000, which means it has the potential to rally from here.

According to the management, the orders are higher by 21% for the first nine months of this year, when compared to last year.

Castrol India

This is another MNC stock that we like as the shares have now dropped to a 52-week low of Rs 111. Castrol India has a tremendous brand and is one of the leaders in the industrial and lubricants segment in India.

The shares are now available at dividend yield of 4.96%, which is not bad at all. The stock had hit a 52-week high of Rs 161, which means there is tremendous scope for an upside. The shares are also not too expensive on the valuations front, with the same trading at around 12 times, one year forward price to earnings multiples. While all of the above stocks are fundamentally very sound and worth buying, we wish to inform readers that markets currently are extremely volatile. It is therefore advised to take a cautious stand and invest only in small quantities, and buy only after the markets stabilize.