Stocks to BUY: 2 Defensive stocks to add to your portfolio as markets fall

Markets remain volatile and in the red as the fear of a 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 up to 25% upside:

Hindustan Unilever Limited

The shares of Hindustan Unilever declined marginally and were trading at Rs 2,629 in the first half of Friday’s trading session. The defensive stock gained around 5 percent while the benchmark Nifty50 index declined 2 percent in the same period.

The stock is known to be a defensive stock as it has surpassed the benchmark in the longer time frame. 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 portfolio of food products, beverages, cleaning agents, personal care products, water purifiers, and other consumer goods. fast moving consumer.

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 a 16% upside from current levels.

ITC Limited

The shares of ITC Limited fell by 2 percent in the Friday session and were trading at levels of Rs 325. Also categorized as a defensive stock, it has risen by more than 23 percent in the last six months while Nifty gained only 14 percent in the period.

In an even longer period, shares of ITC limited have gained about 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, cardboard, specialty papers, and agribusiness.

ICICI Direct remains bullish on the stock and has a ‘Buy’ call with a target of Rs 405 per share representing a 25% upside from current levels.

Written by Anoushka Roy

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