Amid the carnage in the equity markets and even as about Rs 10 lakh crore have been wiped off from the Indian stock markets in the last three days, a few blue chip shares have withstood the correction in the last one week, and continue to see buoyancy. Interestingly, in the last three days, the S&P BSE Sensex has crumbled over 2,400 points to hit a one-and-half-month low of 33,482.81, and bulk of the correction has come today, on the back of a viscous global factors. The global stock markets correction is mainly attributable to the concerns of rising inflation in the United States, especially after after a report released by Labor Department in the United states said that wages have shot up in the recent times.
“It’s a good correction and there is nothing to worry. It’s good time for investors who missed the boat to re-enter. We have a Nifty target of 11,100 for this year,” says Edelweiss Securities that sees current fall in market a good opportunity to enter. We take a look at three bluechip stocks, which have managed to trade in the green despite one of the biggest intra-day fall in recent times.
Track live stock prices: Tech Mahindra; ITC; Bajaj Auto
Tech Mahindra
One of the handful shares in the Nifty to trade in the green this afternoon, the shares of Tech Mahindra are trading 1% up at Rs 612.05. The IT major’s shares remain largely unaffected by the recent turmoil. The shares have returned more than 4% in the last week alone. Further, the shares have returned more than 14% in the last one month. Dharmesh Shah of ICICI Direct has a buy call on Tech Mahindra with a target price of Rs 668.
ITC
The FMCG major ITC may be a great defensive bet, say analysts. Sudarshan Sukhani of s2analytics.com told CNBC-TV18, “ITC is a buying opportunity, the stock has shown surprising strength. It has been an outperformer on Friday and today and maybe this stock will do its own thing even if and when the Nifty starts falling again. So, ITC is a buy and you could actually consider going long in it whenever you can.” ITC shares were trading at Rs 271.55, up by more than 1.2% since it’s opening this morning. The shares have returned more than 2.5% in the last one month.
Bajaj Auto
Bajaj Auto shares rallied by more than 2% intra-day, and continued to trade strongly at Rs 3,100.8. “The second buying idea is Bajaj Auto. A large trading range, a breakout, a setback to that price on Friday, everything fell, but again today it is showing some strength,” Sukhani added. Bajaj Auto has reported a 3% rise in December quarter net profit, reversing the downward trend of last four quarters, backed by higher three-wheeler and motorcycle sales in both overseas and domestic markets.
