Best Indian Stocks to Invest in June 2021: A Guide for Long-Term Value

As the market corrections continue and the overall market trend is downward, it is crucial to identify strong stocks that have corrected and are poised for recovery. The Indian market offers a plethora of opportunities for investors looking to invest strategically in the long-term. This guide focuses on top-performing, well-established Indian stocks that align with a long-term investment strategy.

Selecting the Right Stocks

The choice of stocks to invest in is often based on several criteria: strong fundamentals, company-specific performance, and the overall market trend. Key sectors such as banking, automobile, technology, and consumer goods are currently showing promise. Here are some of the best Indian stocks to consider for June 2021:

Banking and Finance

SBI (State Bank of India) - A cornerstone of the Indian banking sector, with a strong portfolio and consistently good performance. Consider investing through Systematic Investment Plans (SIPs). BSE (Bhartiya Stock Exchange) - A prominent stock exchange with a solid track record and robust performance, making it a reliable long-term investment. CDSL (Central Depository Services Limited) - A leading player in the financial services sector, offering significant growth potential.

Automobiles

Tata Motors - A leading player in the automobile sector, with strong brand value and a diverse portfolio. Tata Motor DVR - A subsidiary of Tata Motors, focusing on commercial vehicles, with good prospects for growth.

Technology and Consumer Goods

ITC (Indian Tobacco Company) - A diversified consumer goods company, well positioned to benefit from the post-pandemic economic recovery. Pidilite Industries - Known for its excellent corporate governance and consistent performance, Pidilite provides a stable investment opportunity. Zen Sar Technologies - A technology company with a strong focus on emerging technologies and digital innovation. IB House Finance - Offering financial services and products, this company has demonstrated steady growth over the years.

Other Survivor Stocks

Besides the above-listed stocks, there are other strong performers that have not yet corrected or have not seen significant price appreciation despite their strong fundamentals. Notable mentions include:

Reliance Industries and JSW Energy

Both companies have seen underperformance recently. However, they still hold strong value propositions with potential for significant growth. It is advisable to keep a strict stop-loss on these stocks to mitigate potential losses.

IRCTC

Although IRCTC did not perform well over the past year, it has shown consistent potential to rally. Patience is key in this case, as the stock is well-positioned to improve once the economy unlocks and travel restrictions ease.

LUX INDUSTRIES

LUX INDUSTRIES is a high-quality stock in the textile sector with lower PE multiples, indicating better value. It is an attractive option for long-term investors looking to diversify their portfolio.

VIP INDUSTRIES

Patients and long-term investors can consider VIP INDUSTRIES. The company has posted losses in the past, but with the anticipated growth in the tourism sector, it could experience a reverse trend. A buy-and-hold strategy could yield significant returns in the future.

CAMS and HAPPIEST MINDS

Managed Asset Services (CAMS) is a highly profitable and underpenetrated sector in India. It is leading the market and is expected to perform well in the coming years. HAPPIEST MINDS, though it has rallied significantly, remains an attractive option for investment, considering the trend towards technology and AI.

Top Picks for Immediate Investment in June 2021

Here are some specific recommendations for June 2021:

Reliance Industries

With AGM next week, Reliance Industries is expected to make significant announcements. The one-month chart indicates a more than 10% gain, making it a prime investment option.

Hindustan Unilever

Hindustan Unilever has shown strong performance in the last month, emerging from a consolidation phase. This makes it an excellent option for investment.

Infosys

Infosys is offering a buyback at a high price compared to the current market price, which makes it a compelling choice for investment. The stock has already provided good returns in the last month.

HCL Tech

As the only IT heavyweight with strong fundamentals, HCL Tech is poised for growth. It has started moving north, making it a good time to invest at current market prices (CMP).

Conclusion

The Indian stock market presents a diverse array of investment opportunities. By carefully selecting the right stocks and adopting a long-term perspective, investors can navigate the current market corrections and position themselves for future growth. Always conduct thorough research and consider the specific investment goals and risk tolerance before making any investment decisions.