Sensex tanks: What to buy now?

The correction seen last week in the market has rolled into this week as well. The market lost 463 points on Monday. The sentiments are low and there is concern over the government's proposed intervention in cement and sugar sectors.

But analysts are not too concerned about a dip in the Sensex. Rather, they consider it as an opportunity to buy and get into good stocks.

Experts give their take on what to buy in a falling market:

Investment advisor PN Vijay

Vijay says, "Some of the sectors which are falling especially non-ferrous metals, for example in Sterlite Industries (India) and Hindlaco Industries will provide great buying opportunities to investors because nothing has really changed in the commodity cycle of these companies."

• ALSO SEE: The biggest falls and gains of the Sensex

As regards cement stocks too, his outlook continues to be positive. He says that the economy is seeing a great boom. And, as there s correction in good stocks, it is a very good buying opportunity.

Market analyst, Sajiv Dhawan

Even market analyst Sajiv Dhawan is of the view that fundamentally nothing has changed in the market and "it is just sentiments that has taken a big hit since last Wednesday."

Dhawan says, "On a sharp fall, Tisco would be worth looking at. But again your time frame should be at least few months, if one is a short-term trader. Metal stocks had a very good momentum and that momentum for the short term might be broken. But the long-term trend of six months remains intact for Hindalco or Tisco. As an investor, they are buys on sharp dips."

He advocates using this fall as a buying option in the cement sector too.

"The over leverage positions are going to force people to sell these stocks. An investor can take advantage of other investors' problems on the F&O side. By all means come into the stock but again one should first enter the front line stocks like ACC, Gujarat Ambuja Cement, Grasim India and then look at some of the midcap stocks like Mysore Cement , Mangalam Cement ," he says.

If you see a sharp sell-off, like if ACC suddenly cracks at Rs 850, it would be bad and drag the whole sector. But then by all means one could buy into these stocks. For, if one is a short-term trader, there is likely to be some bounce back.

Technical analyst, E Mattew

Mattew says, "Fundamentally, ACC is a great buy. But for investors, this short-term downtrend would provide an opportunity to get into market leaders like ACC, Gujarat Ambuja Cement at lower levels."

Technical analyst, Rahul Mohindar

Mohinder says, "Hindalco Industries can get pushed down to about Rs 200 levels. So between Rs 200-210 we would identify a fairly good opportunity to get into the stock. So that is the level we are watching."

For more on markets & business, log on to www.moneycontrol.com.