After three days of losses, the Indian stock market showed some recovery on Friday. The Nifty 50 index closed 104 points higher at 24,854, the BSE Sensex ended up 218 points at 81,224, and the Bank Nifty index gained 805 points to close at 52,094.
Stock market experts see this rise as a relief rally unless the Nifty 50 closes above the 25,050 mark. They believe the index could still test recent lows of 24,300 to 24,350 levels. However, they suggest that current market conditions might be a good time to buy metal stocks for long-term gains.
Metal stocks to buy for the long term
Mahesh M Ojha, AVP of Research at Hensex Securities, said, “Friday’s rally is a temporary relief unless the Nifty 50 closes above 25,050. If the index breaks through 25,300, we could see a positive trend. But the index could still test lower levels around 24,300.”
Anshul Jain, Head of Research at Lakshmi Shree Investment and Securities, advised long-term investors to take advantage of the current market dip. He said, “In this falling market, buying stocks at lower prices can be a smart strategy for long-term investors. The market may stay sideways to negative until the US Presidential election results, but metal stocks could offer good returns in the long run.”
Mahesh M Ojha suggested that long-term investors look at metal stocks like Vedanta, Tata Steel, and NMDC.
Vedanta vs Tata Steel vs NMDC
Pravesh Gour, Senior Technical Analyst at Swastika Investmart, compared the three stocks. He explained, “Vedanta has a diverse portfolio in metals, oil, and gas, but it carries higher risk due to its debt and exposure to global commodity prices. Tata Steel is a leader in the steel industry with a global presence and a focus on reducing debt and sustainability, making it a good long-term pick, though it is affected by market cycles.”
Gour added, “NMDC, which mainly focuses on iron ore mining, has a strong balance sheet with low debt and provides more stability because it is a public-sector company. However, its growth might not be as strong as the others. Tata Steel is likely more attractive for long-term investors due to its balanced growth and global reach. NMDC is safer and lower risk, while Vedanta is better for those willing to take on more risk for potentially higher returns.”
In conclusion, Tata Steel could be the best choice for long-term growth, NMDC offers stability, and Vedanta is suited for those looking for higher-risk opportunities.
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