Sensex Hits 80,000 Mark: Top Stocks to Consider for Investors

As the BSE Sensex index surged to touch the historic 80,000-mark for the very first time on July 3, market analysts predict a sustained rally driven by sectors such as financials and consumption. Amid this milestone, experts have identified key stocks of interest for investors.

Kranthi Bathini, director-equity at WealthMills Securities, highlighted the potential in stocks like HDFC Bank and Ultratech Cement, categorizing them as deep value opportunities within the BSE Sensex. Additionally, sectors like banking, financial services, FMCG, and pharmaceuticals are viewed favorably at current levels.

Notably, Mahindra and Mahindra, Power Grid Corporation, Adani Ports and SEZ, Bharti Airtel, Tata Motors, Tata Steel, and NTPC have been notable gainers leading the index surge, while Asian Paints, Bajaj Finserv, Titan Company, ITC, IndusInd Bank, Kotak Mahindra Bank, Bajaj Finance, Hindustan Unilever, Nestle India, and HDFC Bank have lagged behind.

Amabreesh Baliga, an independent market analyst, emphasized the strength in banking and FMCG sectors, pinpointing key stocks like HUL, ITC, Dabur, Jyothy Labs, Axis Bank, and ICICI Bank for potential investment. He also advised monitoring HDFC Bank for purchasing opportunities amidst recent gains.

Looking at the market trend, the BSE BANKEX and BSE FMCG indices have shown positive growth in 2024, outperforming the benchmark Sensex, which indicates the attractiveness of these sectors for investment.

Experts underline the importance of large-cap stocks in an investor’s portfolio, citing the favorable valuations of the BSE Sensex. Stocks recommended include Infosys, Reliance Industries, Jio Financial Services, ITC, and HDFC Bank for potential returns.

Despite the optimism, analysts caution that the banking and consumption sectors’ rally may face challenges based on monsoon progress, which influences demand recovery and credit growth. A delay in interest rate cuts due to a weak monsoon could impact market sentiment.

Should the worst-case scenario materialize, a 3-5% downside in benchmarks is anticipated, while mid- and small-cap indices could see more substantial declines, with select stocks possibly plummeting by up to 30%.