Stocks to pick for next 3 months for best returns
Updated on 24 Aug 2016
Forthcoming months are tied up with festive season and holidays so question is whether is there any opportunity to buy stocks and make handsome returns? Let’s see how our Indian markets have behaved in past during Sept, Oct, Nov period. In 2015, after a sharp 6.5 per cent slump in August due to the currency war globally, BSE benchmark Sensex managed to hold the levels in the three months to November. During September-November of 2014, the 30-pack index had returned 7.17 per cent. In 2013, the index had climbed 9.23 per cent to rise above the 21,000 level from 19,000 level in August end. In 2012, the index had in fact climbed 11 per cent in the three months.
Based on above statistics experts say that Markets will be on positive side during these 3 months. Experts believe the forthcoming two-three months will be crucial for the market, given the fact that improving monsoon rains and the 7th pay commission award could boost demand for consumption-related sectors that roughly account for 35-40 per cent activity of any given financial year during the three months. In case these months fail to see any spurt in demand, the market may turn lackluster going ahead, say experts. The festive season is when entire dispatches go in and almost 40 per cent to 50 per cent economic activity is focused around these three months, especially in consumer and auto companies. The improvement in rainfall has made many analysts believe that farm income could be up by double digits (after three years of decline) in FY17, supported by an increase in net sown area, higher yield and supportive prices.
Sector and stocks to look intoThe FMCG index, the Consumer Durables index and the Auto index Stocks to Buy from these IndicesPlease note - Best returns from stock market are not based on stock price, so don’t avoid strong growth oriented stocks because of stocks high price. History shows that growth oriented strong fundamentals stocks are less prone to downtrend and volatile.