Stocks to Watch: Volatility is expected to stay elevated in the markets in the coming days. On Friday, there was no specific trigger such as a spike in crude oil prices or any fresh statement from either side in the US-Iran conflict, yet the Indian markets still closed weaker.
Another phase of delivery-based selling
There is a strong likelihood of another phase of delivery-based selling as the market begins to factor in upcoming Q1 FY results, which are not expected to be strong. Investors should moderate short-term expectations and prepare for continued volatility.
The concern stems from the fact that the market’s worst fears have materialised. Oil prices are now largely above the $80 level, which is generally seen as the threshold that both fiscal stability and corporate earnings can comfortably absorb. Beyond this point, pressures begin to build on both macroeconomic and microeconomic fundamentals.
This is not the first instance of oil prices crossing the comfort threshold. However, the key difference this time is that the spike is driven by disruptions in the supply chain in the world’s major oil-producing region. As a result, it may take some time before prices return to normal levels.
What investors should consider?
In such a scenario, investors with surplus cash may consider focusing on companies undergoing structural transformation, where the underlying change is significant and likely to outlast short-term geopolitical disruptions.
Investors should also consider companies backed by strong parentage and robust balance sheets. Regardless of size, all firms face financial stress at some point, but those with stronger balance sheets are better positioned to withstand crises and navigate periods of market uncertainty.
Stocks to look for
ET has curated a list of five large and mid-cap stocks that have recorded an improvement in their average Stock Reports Plus score over a one-week period.
ET noted that the selected stocks span multiple sectors, including banking, auto, pharma, and others. These stocks had earlier undergone corrective phases and are now showing signs of recovery, in line with the broader market trend. However, it remains to be seen whether the improvement in scores will translate into stronger stock performance going forward.
The screening for these five stocks is based on data sourced from Refinitiv’s latest SR Plus report dated May 30, 2026.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
