Investments should be chosen on the basis of value, and not popularity: That's the advice coming in from market expert Raamdeo Agrawal, who's the co-founder of brokerage Motilal Oswal Financial Services.

In a letter to investors, Agrawal shared some interesting tips on how to evaluate a stock's performance in the case of extreme price movement and how to assess its place in one's portfolio.

With regards to the stocks market, he said, “Every investor is a value investor so you have to chase the value and not the price; price will keep moving up and down. The loss is in the price, not in value.”

Agrawal advises investors to build a clear understanding of a stock's value before investing. "Mere popularity of a stock is no guarantee of its investment performance."

On the individual stock front, he said Tata Motors has become very aggressive in the recent past to gain market share.

He further said that the correction in oil marketing companies is a ‘quotational loss’, which is merely a short-term fall in the stock price with the underlying value broadly intact.

Disclosure: Motilal Oswal is one of the launch partners of CNBCTV18.com.

First Published:Jul 10, 2018 12:22 PM IST