At present, Indian markets have taken a bearish mode with investors continuously making profit-booking in their favourite stocks. The Sensex and Nifty, which in May this year recorded all-time highs of over 40,000 and 12,000-marks respectively, has given away their gains and are now below 37,200 and 11,000-levels. Last week on Friday, the Sensex finished at 37,118.22 up by 99.90 points or 0.27% while the Nifty 50 wrapped-up at 10,997.35. A point of note is that, when markets are bearish, it also opens the gate for investing in value stocks as they become cheaper to buy. Currently, seasonal factors are playing a major role - apart from political and economic factors in India and globally. With that, monsoon could be the real game-changer for making most of the equities on exchanges. 

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A Moneywise research note carried by SMC said RBI is scheduled to meet next week and there is an expectation that the central bank will go for another rate cut to boost consumption demand in the decelerating economy. Going forward, the progress of monsoon, Crude oil prices, Rupee movement, foreign fund inflow/outflow and global factors will dictate the direction of the market.

The SMC note points out one can take advantage of bearish market with the progress in monsoon. The note pointed out that these two stocks are worth investing

Tata Consultancy Services (TCS):

TCS’s predictable cash flow generation, strong revenue momentum, stable margins, right balance sheet, stickiness of clients will help them to maintain its premium valuations. Amidst pricing pressure & other supply side headwinds TCS has been able to maintain superior margins. Thus it is expected that the stock will see a price target of Rs. 2436 in 8-10 months time frame on the PE multiple of 27 times and FY20E EPS of Rs. 90.21.

United Spirits: 

The company will continue to benefit from its strong parentage, established brand equity, favourable long-term volume outlook for the spirits industry combined with changing consumer preferences towards premium brands. Substantial growth in revenue and profitability strengthen the financial risk profile of the company. Demand prospects seem very exciting from a medium to long term perspective. Thus it is expected that the stock will see a price target of Rs.648 in 8-10 months time frame on the PE multiple of 55 times and FY20E EPS of Rs. 11.79.