The Sensex so far has given negative returns to investors since the start of the year. In fact, we are down almost 14 per cent since hitting a historic high in March. Analysts are asking individuals to exercise caution ahead of the US Fed meet as there could be an interest rate hike in the US.

McNally Bharat

Karvy has recommended buying the shares of McNally Bharat. The firm believes that the margin expansion could benefit the company immensely in the years to come.

"With government's increased focus on reforming the power, mining & port sectors, together with speedier project clearances, revival of stalled projects and reducing interest rates, we believe the revenue to grow at a CAGR of 7.6% for FY15-FY17E mainly owing to healthy order backlog of Rs. 57.3 Bn," the firm has stated in its research report.

Karvy has initiated coverage on McNally Bharat at 11.2x FY17E EBITDA of Rs. 2338 Mn with a 'BUY' rating for a target price of Rs.112 with an upside potential of 18% for a period of 9-12 months.The

Coal India

Coal India is amongst the largest coal mining companies in the world. SPA is bullish on the stock and has suggested a buy rating with a price target of Rs 374.

"We expect FY17 Coal production & Offtake of 577 mn tonnes (8.0% CAGR FY15-17E) and 598 mn tonnes (10.7% CAGR) respectively. Topline & bottomline is expected to grow at a CAGR of 7.8% & 12.8% between FY15-17E. We retain our Buy recommendation on the stock with a revised target price of INR 394 based on 15xFY17E earnings (Previous- INR 456).

Shares of Coal India last closed at Rs 341 on the National Stock Exchange.

FDC

FDC is among the oldest pharma companies in the country. First Call Research is bullish on FDC and has put a buy rating on the stock. "Price to Book Value of the stock is expected to be at 3.70 x and 3.15 x for FY16E and FY17E respectively.We recommend 'BUY' in this particular scrip with a target price of Rs 263 for medium to long term investment."

FDC maybe a good bet considering the sharp fall in pharma shares in the recent times. The shares of the company are currently trading at Rs 274 on the Bombay Stock Exchange. it had a 52-week high of Rs 274 recently.

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