With prolonged market turmoil and a looming global recession, many investors are turning to defensive stocks as a safe haven. One such stock is from the defense sector – namely, HAL, Bharat Electronics, and Bharat Dynamics. Hemang Jani, Equity Strategist & Senior Group VP at MOFSL, believes these stocks have broader valuation comfort and offer an opportunity for investors to buy on any dip.
Apart from defense stocks, Jani also identified other sectors of the market such as banking and financial services, private banks, IT, and Reliance Industries, as well as PSU banks, which may provide better value given positive growth forecasts. Additionally, Jani cautioned investors to take a longer-term approach when investing in defense stocks as the government has been taking its time to award orders to these organizations.
When it comes to the pharmaceutical industry, Jani has a higher conviction in Sun Pharma and Dr. Reddy’s due to the stability of their operations. While the valuations of this sector have been depressed, Jani believes they will start to show better performance in the upcoming year.
Hemang Jani has over 15 years of experience in the Indian equity capital market and has held positions at Reliance Securities and Edelweiss before joining MOFSL. He is an Equity Strategist and Senior Group VP at MOFSL, where he plays a pivotal role in providing equity research, analytics and insights to help investors make informed decisions.