Stocks that will survive the crash

Mumbai: Metal meltdown continues as most metal stocks were seen in red, crumbling under the pressure from the international markets.

London Stock Exchange witnessed a major metal meltdown, experts now advice to keep away trading in metal stocks.

Looking at the midcaps sector analysts are of view that penny stocks must be avoided.

While bluechip stocks in midcaps, lower caps and large caps seem prudent amidst the crashed market crisis.

Heavyweights like HLL, ONGC, Relience and State Bank of India too were seen tumbling down.

Apparently, commodity meltdown in the International markets is directing the moves of metal stocks in India.

In the crashed market the only sectors surviving the global market forces are media, entertainment and lifestyle which are more India centric and are unaffected by the global market turbulations.

Analysts are of view that at present investors should focus on those sectors which are domestic.

"The 800 points fall is just in line with the global performance," said Technical analyst Salil Sharma.

"Up and down come as liquidity tightens in the market. Investors should stay away from trading until the markets stabilise" he added.

Sectors like IT and pharma and stocks like Reliance, Tisco, Maruti, Glenmark Pharma, and DRL will be stable.

Deven Choksey of KR Choksey said, "There would be steady progress in IT.

Selective stocks like Reliance, Tisco, Maruti will perform. In pharma Glenmark and DRL will stay relatively safe. In the fall, they will be worth investing.

Choksey said no sector look weak at the moment but if there is a undue rise, then realty stocks might suffer some correction.

"No sector is seen weak at this moment. But if there is a undue rise then possibly some correction might happen in realty sector. Commodities per se is not bad and any correction there will be welcomed by the traders. Tisco will safely do well," he said.

Ambareesh Baliga, Karvy Stock Broking, said, "Three-month outlook is a bit difficult to give right now but then this volatility has actually rattled investors. I don’t see investors coming back to the markets very soon and start buying."

Janish Shah, Networth Stock Broking, said, "Sectors like FMCG, banking, cement should well in the next 6 months. Stocks like Kesoram Industries, Dabur India, Allahabad Bank, Union Bank will do well."

Sumeet Rohra of Antique Stock Broking, said "Given a three-month outlook my top pick would be Reliance. It is the pillar of the market and will take the market up during recovery along with ONGC and Infosys."

However, he cautions against buying anything in the metals sector. "Retail investors should not buy any stocks related to commodities and especially metals. They should not exit in panic except for the metals sector."