Bucking the trend

A closer look at the sectors and companies that have strong prospects and are likely to fall less when markets decline.

Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised. – Warren Buffett

There has been only one question in the minds of the investor after the sell-off witnessed in the equity market after the Budget: When to catch the falling knife? The Sensex has declined 9.32 per cent ever since its historical high of 14,652 points on February 8, 2007, and that too because of the improvement witnessed last week.

But there have been some stocks, mainly mid-caps, which have fallen in the range of 40-50 per cent. Such corrections often offer investors opportunities to buy good stocks at a cheap price thanks to ‘unusual circumstances’.

Market participants are still divided if this is just a correction or the beginning of something more serious.

Click here for the whole report.

Source: Business Standard

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