As the correction continues unabated, a divergence is emerging in what is happening to the Nifty and Sensex and what is happening in the entire large-cap space. There are pockets where a certain amount of relative outperformance is visible. While Reliance Industries might be under pressure, stocks like HDFC Bank – which too has high FPI holding – is able to keep its head above the water even on strongly bearish days. So, probably the broad-brush selling is over. Still, despite the recent correction, valuations are on the higher side. Being selective should thus continue to be key as the markets show the first hint at a possible turnaround. ET Screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". The screener applies different algorithms for all BSE and NSE stocks.
