The markets remain volatile and in the red as the fear of the resurgence of Covid 19 gripped the market. Amid the turmoil, investors turn to stocks that hold their ground. A defensive stock is a stock that provides consistent dividends and stable earnings regardless of the state of the overall stock market.
Here are two defensive stocks to buy for an upside of up to 25%:
Hindustan Unilever Limited
The shares of Hindustan Unilever have declined marginally and were trading at Rs 2,629 in the first half of Friday’s trading session. The defensive stock has gained approximately 5 percent whereas the benchmark index Nifty50 has shed 2 percent in the same period.
The stock is known to be a defensive stock as it has outperformed the benchmark in the longer time frame. The shares of HUL have grown by more than 17 percent in the last six months while Nifty has added 14 percent in the period.
Hindustan Unilever Limited, a subsidiary of Unilever, is a consumer goods company that has a product portfolio of foods, beverages, cleaning agents, personal care products, water purifiers, and other fast-moving consumer goods.
Global brokerage firm Jefferies is bullish on the stock and has a ‘Buy’ call with a target of Rs 3,050 per share which represents an upside of 16% from the current levels.
ITC Limited
The shares of ITC Limited declined by 2 percent on Friday’s session and were trading at Rs 325 levels. Also categorized as a defensive stock, it has rallied by more than 23 percent in the past six months while Nifty has only gained 14 percent in the period.
In an even longer period, the shares of ITC limited have gained approximately 56 percent in the last two years outperforming the Nifty 50 which has gained 30 percent in the period.
ITC Limited is an Indian conglomerate company with a diversified presence across industries such as FMCG, hotels, software, packaging, paperboards, specialty papers, and agribusiness.
ICICI Direct remains bullish on the stock and has a ‘Buy’ call with a target of Rs 405 per share which represents an upside of 25% from the current levels.
Written by Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
