Ignore noise on the street, stick to basics: 5 stocks from different sectors with an upside potential of up to 38%

The markets are volatile with a bearish bias, and the Nifty and Sensex are bearing the brunt. A closer look, however, reveals that, even in the large-cap segment, only select stocks are seeing selling pressure. These are stocks where FPI holdings are high as they are part of the MSCI indices – and a lot of passive money flows into them. So when there is a sharp spike in FPI selling, these stocks take a beating. As an investor, make it a habit to view large-caps with FPI holdings as two categories: One, where the FPIs are holding the stocks due to their presence in the MSCI indices. And two, where the FPIs are holding them because they are long-only funds. It is the second lot which is likely to outperform at least as far as drawdown is concerned.