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    Time for tactical investing: 5 stocks from 2 most unwanted sectors, but with very strong balance sheets

    Synopsis

    There is an age old saying on Dalal street, when stocks stop reacting to bad news, it means that bears have run out of ammunition and probably it is time to look at them. Similarly when stocks stop reacting to positive news, probably bulls will not be having a say in the near term. At this point of time, there is an interesting phenomenon which is playing out. While at the overall market basis, it appears that bulls may not have much to say in near term. But at the same time, there are two sectors, which have been getting bombarded with bad news for the last two years. Whether it is macro or micro, news or opinion, literally everything which has been said about them is either negative or at best neutral. But if one looks at price action on the counters on any bad news or even brokerage downgrades which is essentially an opinion stock prices are refusing to fall. Historically one of these two sectors were considered defensive,as stocks from this sector tend to outperform in bearish markets. So, is it the time to go against the narrative of negative news and get them on the watch list?

    It is after a long period of time that both indices and market breadth are indicating that finally there is a correction. Now just because the market is correcting that does not mean that money is not going to come to markets. There are still lots of investors who would be sitting on cash and looking to deploy fresh money. The question is that in current market conditions where more headwinds are getting added to already existing ones like high
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    The Economic Times