The Indian equity market opened on a cautious note on Monday as the Nifty 50 hovered around the 22,500 mark, pressured by escalating tensions in the Middle East. While global risk sentiment remained fragile, domestic investors continued to seek defensive plays and value opportunities, prompting several brokerage houses to highlight select stocks that could deliver upside despite the backdrop. Anand Rathi’s senior analyst Ganesh Dongre singled out three names that he believes are undervalued and poised for a rebound.
BHEL, the state‑run engineering giant, is trading below its book value and has a strong order‑book in power generation projects, which could benefit from renewed government spending on infrastructure. Hindustan Petroleum, a subsidiary of HPCL, offers exposure to the downstream oil segment; its margins have steadied after a recent dip in crude prices, and the company is expected to capture higher volumes as domestic fuel demand recovers. Shriram Finance, a leading NBFC, shows resilient asset quality and a growing loan book in consumer finance, supported by its aggressive digital lending push.
Dongre advises investors to set stop‑loss levels around 5‑7% below entry to manage downside risk, while targeting a 12‑15% upside over the next quarter. He cautions that any sudden escalation in geopolitical risk could trigger broader market sell‑offs, making disciplined risk management essential. For the average retail investor, these picks provide a blend of sectoral diversification—power, energy and finance—while aligning with a risk‑adjusted approach that balances potential returns against the prevailing macro uncertainty.