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Oil And Gas Stocks Like Ongc, Coal India, Gail, Oil India, Ntpc And Power Grid Are A Play On Growth And High Dividend Yield, Says Sharekhan

Concerns about slow growth of the global economy and rising commodity prices has weighed on stock markets. Year-To-Date, Nifty50 and Sensex have fallen 11 percent each. “Sustained high inflation and accelerated rate hikes heighten investors’ fears on a potential recession in the US. Thus, we expect the market to remain volatile in near term and investors should avoid richly valued stocks with slower earnings growth prospects,” Sharekhan said in a note. At such a time, brokerage house Sharekhan by BNP Paribas believes investors should focus on fundamentally strong companies with a consistent high dividend yield. The brokerage house is of the view that the oil and gas and power sectors have high dividend payout ratios and the recent correction has made dividend yield more attractive for these sectors. According to Sharekhan, stocks such as Oil and Natural Gas Corporation, Oil India, GAIL, NTPC, Power Grid Corporation of India and Coal India are a play on both growth and high dividend yield.

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