Indian two thousand and five hundred rupee banknotes are arranged for a photograph in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)  

Which Sectors Will Benefit From A Weak Rupee? #AskBQ

#AskBQ is BloombergQuint’s daily offering where market experts help investors make the right investment choice in the equity market.

In today’s episode, Amar Singh, head advisory, Angel Broking, and Gaurang Shah, head investment strategist, Geojit Financial Services Ltd., give their views on JSW Steel, Marico, Zee Entertainment, and the sectors doing well in times of a depreciating currency.

Watch the full conversation here:

Edited excerpts from the conversation:

Shivam Kumawat: Is this  a good time to enter Infibeam Incorporation Ltd.?

Amar Singh: I would recommend one to not buy the stock at the current level with a long-term view. One can buy the stock around the Rs 220 level, with a stop-loss of Rs 208.

Ankit Bhattacharjee: I am planning to invest in Havells, Rites, IndiaBulls Ventures, Tata Metaliks and Bandhan Bank, with a three-five year view. Please suggest the right entry price.

Gaurang Shah: I would recommend one to invest in Havells India, Bandhan Bank, and Tata Metallik at the current level. One can also invest in Vedanta, Tata Steels, and Hindalco.

Subhash: I bought shares of Camlin at Rs 85 apiece with a six-month view. Is this a good time to average the stock at the current level?

Amar Singh: No, this is not a good time to average the stock. From a short-term perspective, one needs to stay away from this stock and not average.

Omkar Nimballkar: What is your fundamental view on Natco Pharma?

Gaurang Shah: With a time horizon of 18-24 months, one can invest in the stock with a target of Rs 960.

Akhila Vinod: Is Dixon Technologies a sound investment for two years?

Gaurang Shah: I would recommend one to not invest all their money in the same stock. One should invest in parts in this stock. One can invest at least 25-30 percent of their intended investment in the stock.

Ram Hegde: Why is there no movement in the Asian Paints stock? What should be my September series target?

Amar Singh: Any correction in the stock towards the Rs 1,350 level is a good stepping stone to enter the stock, in my opinion.

Alex: Which sectors will benefit from the depreciating rupee?

Gaurang Shah: All export-oriented businesses like IT, pharmaceuticals would gain from this depreciation of the rupee. I would recommend one to look at these two sectors.

S Girish: I have 300 shares of JSW Steel at Rs 293.30. Should I hold or sell? I can hold on to the stock for another year.

Gaurang Shah: I am positive about this stock and the more time one gives to this stock, the better. I would recommend one to extend the time horizon to 18-24 months and keep a target of Rs 465.

Aditya Nair: I have 150 shares of Indiabulls Real Estate at Rs. 205 apiece. Should I average my price at current level?

Amar Singh: I would recommend one to add on to the stock at the current level. One can watch out for the Rs 160 level.

Puneet Nanda: Which is the best mid-cap stock pick with a holding period of one-year?

Gaurang Shah: I would recommend one to invest in Marico with a long-term view.

Anand Mishra: I have Rallis India, Gujarat State Fertilizer and Chemical, and Gokaldas Export. I am incurring a loss in these stocks. Should I hold or exit?

Gaurang Shah: I would suggest one to hold on to Rallis India and Gujarat State Fertilizer and Chemical. If one is seeing a 5-10 percent correction, they may average these stocks. I would recommend one to exit their Gokaldas Export stock and instead invest in Ashok Leyland.

M. Murugan: What is your short-term view on Zee Entertainment? What should be my entry level?

Amar Singh: This is not a good level to invest in the stock at the current level.

Anant: Between L&T Infotech and NIIT, which stock should I invest in?

Gaurang Shah: I would recommend one to invest in NIIT infotech or Cyient.

Swaroop Chavan: Is it a good idea to invest in BHEL, especially after their buyback meeting?

Gaurang Shah: This stock is an under-performer. I would recommend one to invest in Larsen & Toubro,Thermax, and ABB India.

Analyst disclosures: Both the analysts do not hold any stocks that were discussed today.

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