The benchmark indices have been very volatile in the last few months with the economic slowdown, liquidity crunch, weak earnings, and global concerns impacting a wide range of domestic stocks.

Share Market Live

NSE

The earnings season has been a mixed bag with most consumer companies delivering better-than-expected performance, while the banking, financial services and insurance (BFSI) stocks delivered uninspiring performance.

However, the commentary of most management continues to remain cautious.

Most analysts have suggested a stock-specific approach in the current market. "We believe the way to construct portfolios is to buy stocks of companies with the highest delta in return on capital. We expect market performance to broaden; hence, we also like mid-caps where the forward growth is not reflecting share price performance," Morgan Stanley said in a report.

Reliance Securities also maintains a cautious stance for its portfolio with a mix of defensives and focus on quality. The brokerage suggests a model portfolio for investors post Q1 earnings.

"IT and pharmaceutical companies derive a major chunk of their revenues from exports. Thus, they are considered to be safer havens during the periods of domestic slowdown. Further, the results from the IT sector were good with Infosys upgrading its guidance for revenue growth. As we believe IT and pharmaceuticals sectors will continue to retain their flavor in the medium-term, we maintain our allocation for these sectors. Thus, our overweight stance continues for both sectors," the brokerage noted.

Whilst its expectations from the banking sector were quite high, post-earnings commentary of the leading banks has been cautious. Besides, the quarterly results of smaller banks have not been inspiring, they added.

Automobile stocks have been underperforming the broader market for a significant period of time and our underweight stance for the sector has helped in delivering outperformance, the brokerage explained.

Here is a model portfolio for investors by Reliance Securities post Q1 earnings:

Disclaimer

: CNBCTV18.com advises users to check with certified experts before taking any investment decisions