It's carnage across Indian stock markets, following in the footstep of global peers. European indices have shed more than 6 per cent this week and the Dow Jones saw the worst ever decline in the first week of the year ever.

State Bank of India

State Bank of India has fallen from levels of Rs 330 to the current levels of Rs 208, which is a 52-week low. That is a dramatic fall, which leaves investors wondering, if it would ever go back to those levels of Rs 330 even in the next two years.

There is no point in selling State Bank of India shares at the ridiculous level of Rs 208, which is also a 52-week low. In fact, selling in desperation may only result in losses. At these levels the stock of State Bank of India makes for an attractive buy for a number of reasons. One is that at some stage economic recovery would happen. This could boost sentiments for banking stocks, as credit growth would expand and non performing assets would fall.

On the other hand the stock has been dumped, because of global risk aversion. SBI is a domestic player and India, things are looking much better than across the globe.

The stock is trading at a p/e of just 10 times, one year forward earnings. If you get the stock below Rs 200, it would be a good opportunity to buy.

Larsen and Toubro

The Larsen and Toubro stock hit a new 52-week low of Rs 1175 this week. The stock has fallen dramatically from levels of Rs 1882 to the current levels. Shares of L&T have fallen largely on worries that orders from the Middle East could fall dramatically, given the sharp slump in crude oil prices. The order book in the domestic market is fast improving to show some traction.

Going forward it is almost certain that the company would have to depend on domestic business. L&T is trading at a p/e of 20 times, as against the earlier p/e of almost 30 times. If the stock falls near the Rs 1100 mark, it would be a good opportunity to buy the stock.

For long term investors the stock could offer returns, given the government's focus on infrastructure and the company's strong presence there.

ICICI Bank

ICICI Bank has hit a new 52-week low falling from levels of Rs 380. The stock has been hammered out of shape, as investors continue to be worried over non performing assets, that have failed to show any signs of falling.

Many analysts say that there would be some more pain for banks in the next few quarters, though, nobody knows when the pain will end. The story of ICICI Bank is similar to SBI. An economic recovery would lead to stronger growth and a revival in the stock price. If one gets ICICI Bank at around the Rs 330 levels, it would be a good opportunity to accumulate the stock.

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