Check these quality stocks with higher ROCE and lower PE

Markets today opened on a flat note as the Nifty 50 lost 0.14%. Having said that, investing in quality stocks having higher ROCE and lower PE does matter. Read on to find out more about such stocks.

At the opening bell, the prominent domestic indices were trading down with S&P BSE Sensex shedding 0.16% (89.1 points), while Nifty 50 declined or 0.14% (23.05 points) to trade at 16,255.45. Broader market indices on the other hand outperformed the frontline indices with the S&P BSE Mid-Cap index and BSE Small-Cap index trading up 0.27% and 0.39%, respectively.

Having said that, the market breadth seems to be strong as 1,965 stocks advanced, 1,000 stocks declined, while 154 stocks remained unchanged. Foreign Institutional Investors (FIIs), as well as Domestic Institutional Investors (DIIs), were the net buyers. FIIs purchased shares to the tune of Rs 156 crore, while DIIs bought shares worth Rs 844 crore on July 18, as per the provisional data.

On Tuesday, the Reserve Bank of Australia (RBA) released its meeting minutes, wherein the board saw present rates being well below the neutral rate. This indicated a further hike in the rates over time to return inflation to the target. Earlier this month, the RBA had hiked rates by 50 basis points (100 basis points equals 1%).

Post starting the week on a positive note, major Asian indices declined on Tuesday. This was a result of investors absorbing the Reserve Bank of Australia’s minutes of the meeting.

Following is the list of quality stocks worth considering.