Stocks of these 16 strong companies are getting 'cheap', include them in the portfolio

In the fall of the market, the shares of many strong companies have come at attractive valuations. Fundamentals of these stocks are strong. When the market stabilizes, these stocks are expected to rise well.

Time to Buy Quality Stocks: 

On February 24, the Russian government ordered the army to attack Ukraine, after which the war between the two countries is going on. Tension between the two countries was already there before 24 February. Due to geopolitical risk, there has been a decline in the markets around the world. The domestic market has also not remained untouched by this. However, in this decline, the shares of many strong companies have come at attractive valuations. Fundamentals of these stocks are strong and once the market stabilizes, a good rally is expected in these stocks going forward. Brokerage house Axis Securities has given a list of 16 such largecap, midcap and smallcap stocks, which are ready to run in the market further.

 Best Large Cap Stocks: 

TCS, Vedanta, Coal India, SAIL and SBI

Best Midcap Stocks:

 Oil India, Canara bank, Dalmia Bharat, Persistent, Chola Investment & Finance

 Best smallcap stocks:

Finolex Industries, Birla Soft, Chambal Fertilizer, Redington India, Gujarat Narmada valley fertilizer

 This factor is important for the market

The brokerage house says that when Russia-Ukraine tensions ease, the market is expected to once again focus on important events such as central bank rate hikes and inflation in the current calendar year. The FED's stance in the upcoming FOMC meeting will be a deciding factor for the direction of the market in the near term. Crude is also a big factor at present. The US Fed may slow down the pace of rate hikes on the prospect of a cut in global growth. However, there is no denying the increase in rates.

In the coming days, the first focus of central banks will be more on controlling the effects of inflation rather than the growth effect. The brokerage house believes that the current macroeconomic development is influenced by volatility across all major asset classes including equities, debt, currency and gold.

 Nifty may touch 20200 level

The brokerage house says that the December quarter has been better for the companies. Earning momentum is there in the companies and this will prove to be the key factor for the market. Increase in profit will increase capex. If the spending increases, then the credit growth of the banks will be better. Growth will also come from budget expenditure. In view of this, the brokerage house has estimated the Nifty to reach the level of 20200 by December 2022. However, macroeconomic factors such as geopolitical tensions, inflation and interest rate hikes and state election results are also risk points.