InvestorQ : I am having small positions in Reliance Industries, HDFC Bank and Infosys. Should I hold on to these stocks, buy more or sell out?
rhea Babu made post

I am having small positions in Reliance Industries, HDFC Bank and Infosys. Should I hold on to these stocks, buy more or sell out?

Answer
image
3 years ago
Follow

In fact, in all the three stocks you can look to buy more of the stock, but instead of jumping in and buying in one shot, you can keep accumulating on dips. RIL, HDFC Bank and Infosys look quite positive at this point and here is why. Let me also add that you are doing a good thing by sticking to large caps and focusing on true blue sustainable quality of earnings kind of stocks. Let me tell you why I like these 3 stocks.

Reliance Industries

Despite all the concerns over Jio and GRMs, RIL continues to beat the global benchmarks in refining and petchem businesses. With a major revamp to cut Jio’s debt on the anvil, the group is likely to see a bigger value explosion. Digital and retail business has already become the driving forces of RIL.

HDFC Bank

I am sure that you have seen this stock outperform the peer group ad nauseam. The September quarter saw a sharp growth in profits as well as a healthy expansion in its net interest margins. With gross NPAs still less than 1% and a strong retail book and CASA base, HDFC Bank is likely to give value for money next year too.

Infosys Ltd

If you are worried about the whistle blower allegations, it does appear to be more of a case of misplaced enthusiasm in this instance. Class action suits would hardly apply in such cases and Infosys creates too many jobs in the US for such minor complaints to be taken seriously. On a more serious note, here is a company that consistently builds on growth, margins and guidance. This is your best bet in the IT sector!

I repeat that in all the above cases, look to accumulate these stocks on dips and the volatility in the markets will give you the opportunities.

14 Views