'Pick the right stocks'

MUMBAI: The market slide, which started in the large-cap segment last week, has become broad based and spread to mid-cap and small-cap stocks. Global cues were weak on Wednesday and there was selling across the board by FIIs. "Over the last 10 days global markets have dipped by 16-17% while the domestic bourses have gone down by just around 6-7%. So some correction was expected," said Dinesh Thakkar, CMD Angel Broking.
Both fundamental and technical analysts say it's likely if the market does not find support during Thursday's session. "If the markets do not recover in late trades on Thursday we could see further losses of around 700-800 points on the sensex, before some respite," said Alok Churiwala of Churiwala Securities.
Analysts said investors should pick up shares when markets dip, they advise caution. There are global factors at play and the bounce back might not be as swift as during previous corrections because of the subprime fears. "Infrastructure and related sectors, power, cement and banking seem to be good sectoral bets. IT stocks have also been languishing for a while and would be a good buy with a one-year view," Churiwala added.
Experts also say investors should not look at the index levels when it comes to buying stocks. "The past rallies have been on the back of movements in select stocks. Investors should be more stock-specific when buying and look at individual stock stories," said Amabreesh Baliga, V-P, Karvy Stock Broking.