5 investment ideas this festive season

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As the holiday season approaches, investors are inundated with investment ideas from all over, and like when choosing which Mithais to focus your attention on, you need to be picky with what you invest in. I’m also about to share some investment ideas in this article, but they shouldn’t be seen as ideas that should do well because of festivals or in the short term, but as stock picks with views to term that you might consider adding to your portfolio at this time. A moment of conviviality, family, celebration and gluttony should not be a moment of recklessness.

HDFC Bank (NS:) and Kotak Mahindra (NS:) Bank Ltd. (BO:) – The financial and banking sector is a vital part of India’s growth as it forms the backbone of our economy. I picked my two choices from private sector banks and they are HDFC (NS:) Bank and Kotak Bank. HDFC Group announced the merger of HDFC Ltd and HDFC Bank earlier this year and after hitting a high of 1700+, HDFC Bank has seen a decent correction and is currently trading around 1450. The largest private sector bank has experienced steady growth and should do well in the long term after the merger. Kotak Bank is another fundamentally sound bank that has achieved a good CAGR of around 20% over the past 5 years and can be a good addition to the portfolio.

TCS (NS:) – The IT sector went through a major correction and fell more than 30% in less than about a year. TCS also participated in this correction along with other large and mid-cap IT stocks and corrected by 25%. There are signs of basic formation on the IT sector charts as well as TCS. A debt-free company, a leading stock in the sector, consistently generating good ROE over the past few years, it should do well going forward.

– The pharmaceutical sector has traditionally been seen as a defensive play in stocks and a good addition to the portfolio, but there are many external factors such as US FDA regulations etc. that determine the prices of individual pharmaceutical stocks in the short term. So, instead of selecting an individual stock, I’ve selected pharma bees here.

ITC Ltd (NS:) – A portfolio without the consumer theme would be incomplete. I chose the most hated/loved stock which is ITC over the past 1-2 years. It was an underperformer for a long time until the recent rally that started earlier this year. It is a breakout on the weekly charts and when it breaks through 365 it will be trading above ATH. Even after this rally, it is trading at a much lower P/E than its peers and is a value pick to accumulate here and on the pullbacks.

– In turbulent times, most investors resort to precious metals like silver as they serve as a natural hedge for stocks. During times of uncertainty, gold and silver tend to rise, however, silver has relatively outperformed gold recently. Currently trading around 62,000, silver may be a good chunky addition from here at a pullback in the 57-58k range. It is also advisable to have a lower weighting in silver compared to stocks in general.

Disclaimer: These are the author’s personal opinions on these recommendations. Investors are urged to do their own due diligence before making investment decisions.

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