What to do now with FMCG, steel and defense stocks?

Questions like these are always difficult to answer, but let’s get a few things straight; of course, barring today’s surge, which has happened again over the past week, about 10 days, all of these stocks have provided a reasonable price correction of anywhere between 5-10% from their previous high.

So for short term traders it was a good opportunity to enter. Now, of course, it depends on how the market momentum is maintained and whether the buying in these sectors and these stocks continues.

We also add here that the entire PSU stocks has been outperforming the market for almost six quarters now. Initially it started with all the old companies that were doing well and starting to do well, they recently moved into all these new defense shipbuilding and aeronautical spaces.

This was due to the continuous government support that came to these companies; one in terms of political support and two in terms of the actual purchase orders that the government and various agencies and various departments and divisions of the government have given to these companies to purchase products and services.

As a result, the export market for these companies has also picked up. Any medium term investor can invest in these companies during any correction. It must be remembered that we have an election two years down the line and depending on the new composition of the government, new policies will always trigger government companies.

However, the kind of major improvement that has taken place in these companies is expected to continue regardless of the change in government that happens…

Get our live Calls. Check out latest IPO News, Best Stock Market Articles on Knowledge Corner, get daily reports on premium stocks, know market’s daily calls updates on Tracksheet,  Like us on Facebook and follow us on Twitter