20 Nifty stocks fell 15-60% in 2018; Should you invest in beaten-down names
Investors are always on a lookout for stocks that could give quick returns and are also available at fair valuations. The year 2018 was not a good one in that sense - while returns from benchmark indices were merely in single digits, many quality stocks corrected in double digits.
Nifty50 recorded gains of little over 3 percent in 2018, while nearly 60 percent of the index components gave negative returns. So, are all the stocks that have seen a double-digit cut in 2018 attractively valued? Well, that might not be the case always, suggest experts. It does make a good investment case, especially if they are Nifty50 companies, but investors should also study the reason why the stocks fell in the first place, they say. Beaten-down stocks make for an interesting investment case, but the challenge is to figure out whether the underperformance is temporary or structural in nature. Heavily beaten-down stocks have major structural challenges like Tata Motors which is seeing a major global slowdown, The first rule of investing is to look at the earnings growth of the company.source- www.moneycontrol.com The divergence between good quality growth-orient companies and value stocks is still very high. Most experts advise investors to stay with quality names or large-caps as volatility could rise ahead of general elections.
If you want more information regarding the market News & many other tips like Intraday Tips, MCX Free Tips Free Tips, Indore Advisory Company, Bullion Market Tips, Share Market Tips In Hindi, Bullion Energy Tips,NSE & BSE Market Tips, Free MCX Market Tips, MCX Premium Tips, , Live commodity tips.
Whatsapp User Join Our Group: 9300421111
No comments:
Post a Comment