Stocks that fell to 52-week lows
|Company Name||52 week low||Current market price|
|Can Fin Homes||425||442|
|ICICI General Lombard||1071||1103|
Markets could remain volatile
According to Hemang Jani, Head of Equity Strategy, Motilal Oswal Financial Services, Nifty opened a gap lower as stock markets around the world witnessed a sell-off after US inflation data in May broke. are accelerating to four decades, raising concerns about aggressive rate hikes by the US Fed in the next monetary policy meeting scheduled for Wednesday. Yields on US Treasuries hit a 14-year high of 3.15% while the dollar index climbed above 104 levels. US futures are also down 1%.
“Domestically, inflation data from India is due today which should lead to market jitters. Other than that, the market would continue to remain cautious ahead of various central bank meetings this week. “, said Jani.
If you buy the shares mentioned above
It’s hard to say whether you should buy stocks now, given that interest rates are on the rise. From the above list in terms of ratings, LIC Housing and Can Fin Home look attractive to buy. That said, if interest rates rise, there could be a slowdown in home lending. HDFC has already raised interest rates. Other than that, it is hard to find value in the stocks mentioned above. We suggest investors look to buy at further lows. The only suggestion is that most of the stocks mentioned above come from the mid and small cap space. It is best to look for stocks in the large cap sector, which could protect the portfolio from a further drop in the markets.
Investors are urged to exercise caution as markets have become extremely volatile. Neither Greynium Information Technologies nor the author would be liable for any loss based on a decision to read the above article. Every effort has been made to provide accurate information and readers should understand the inherent risks before investing in the markets.