Fall in rupee, market turmoil put focus on safer stocks, good opportunity to invest in stocks

Fall in rupee, market turmoil put focus on safer stocks.

Is this a good opportunity to invest in stocks?

Banking sector:

1.   SBI CMP @ 245 it’s a good chance to get good profit on long term prospective

2.   Canara bank cmp @ 275 it’s a good chance to get good profit on long term prospective

3.   Icici bank cmp at 265 it’s a good chance to get good profit on long term prospective

4.   Yes bank cmp @ 640 it’s a good chance to get good profit on long term prospective

5.   Axis bank @ 480 it’s a good chance to get good profit on long term prospective

The turmoil on the Street and a continued fall of the rupee may affect growth stocks, pushing equity investors back to the relative safety of defensive counters, or forcing them to flee markets, or both.
The rupee depreciation will make exports competitive, helping pharmaceutical, information technology (IT), automobile, and textile exporters, among others.
The market turmoil also favours consumer goods companies such as ITC, Hindustan Unilever, Asian Paints, Colgate Palmolive, and Nestlé, given their debt-free balance sheets and strong pricing power in the market.
In 2013, the market was lifted by exporters such as Tata Consultancy Services (TCS), Infosys, Sun Pharmaceutical, Lupin, and Bajaj Auto, after a deep correction in July to August following a run on the rupee. The Sensex had ended the year with gains of nine per cent due to a rally in defensives.
The BSE IT Index was the biggest gainer during 2013, up 60 per cent; followed by BSE Healthcare, 22.5 per cent; BSE FMCG, 11 per cent; and BSE Auto, 7.3 per cent.

This more than compensated for the decline in BSE Bankex, 9.4 per cent; BSE Power, 14.6 per cent; BSE Capital Goods, 5.6 per cent; BSE Realty, 32 per cent; and BSE Consumer Durables, 24.6 per cent.

Quite a few banks have large exposure to commodity producers such as metal makers, which are on the hook due to the global meltdown in commodity prices. We are avoiding them right now," said Pankaj Murarka, head of equity at Axis Mutual Fund.