'It takes 2 hands to clap’ — Commerce Minister Piyush Goyal joins chorus of voices slamming pvt sector
At a post-budget conference, the minister took industry leaders to task for not cooperating with govt. Last week, Economic Survey & govt officials had also criticised private sector. Key Points
ThePrintCentral govt capex at ‘desired level’, onus now on states & pvt sector — Economic Affairs Secretary
Union Budget 2024 allocated Rs 11.1 lakh cr as capex for FY25. This is 11% higher than what was budgeted for FY24 and 17% higher than what was actually spent that year. Key Points
ThePrintAutomobile, pharma, tourism sectors expected to grow at rapid pace: PM Modi
Automobile, pharma, tourism sectors expected to grow at rapid pace: PM... Key Points
The Tribune IndiaAutomobile, pharma, tourism sectors expected to grow at rapid pace: PM Modi
Automobile, pharma, tourism sectors expected to grow at rapid pace: PM... Key Points
The Tribune IndiaAutomobile, pharma, tourism sectors expected to grow at rapid pace: PM Modi
Automobile, pharma, tourism sectors expected to grow at rapid pace: PM... Key Points
The Tribune India
Skepticism on stock price vs tailwinds of policy push: 4 defence sector stocks with upside potential of up
In the last four years of bull run, among the PSU space, defence was the first sector to see a re-rating, infact it was the sector which led back the resurgence of the PSU space which was then followed by railways and then NBFCs which are lending to particular sectors. Now the fact that the defence stocks have run up sharply and sitting with gains, questions are bound to come on whether they have priced all the positives or not. A part of the answers lies in looking at how the stock behaved in recent times and whether the macro operating picture of the sector has changed or not. On the price front, in the corrective move of March, after initial correction due to profit booking, some of the defence stocks have once again moved upward and are quoting close to all time high, indicating demand for the paper from this sector. On the fundamental front, the operating matrix is better and probably it is one of the sectors where the continuation in policy making will have the biggest positive impact. Key Points
Economic TimesProcess of overvaluations getting readjusted over? 4 stocks from diagnostics sector with upside potential
There are some businesses whose underlying nature is such that they don't have any sudden spike in their profits. However at the same time, there is constant growth. The growth could be because of many reasons, it may be because of the fact that penetration of that good or service is very low and over a period of time as it improves, both top and bottom line keep moving upward. In some cases, it could be because of the movement of business from the unorganized sector to the organized sector. It could also be because of the fact that the need is such that if required spending on it cannot be postponed. In the case of diagnostic business, it is all the three. But there is another side to it, how the street is treating these businesses when it comes to valuations. In case of diagnostics, from dizzy heights of valuation in 2021 to today where it is being seen as a sector where there is nothing worth looking at this point of time due to multiple issues. Yes, there are real issues with the business, but not a bad time to get them on watchlist at least. Key Points
Economic TimesAs valuations run ahead, time to be selective? 4 real estate stocks with upside potential of up to 20%
Like business and economic cycles, stock markets also have cycles where they will take a liking to a particular sector in such a manner that valuations will go through the roof. Then comes a phase, where the same sector is thrown down the dumps. Real estate sector is one sector where in 2008, valuations were at their peak. then come and fall and by the start of 2020 valuations were in the dumps. Thanks to many factors, including sudden spurt in demand in covid and post, sector being cleaned both due to pressure from the banks and the impact of new laws like RERA, there was an upswing in the industry. This happened at a time when liquidity was high and we have seen a resurgence of select real estate stocks. If one looks at the announcements coming from the industry about projects getting sold, it indicates that demand is high. Whether the stock prices are already reflecting the rosy picture? Key Points
Economic TimesNifty financial service stocks including banks: Challenges have been a part of growth trajectory, 6 stocks
One or the other thing keeps the financial financial services sector stocks in news. Right from regulatory changes to global developments impacting the cost of capital, the financial service sector tends to deal with multiple headwinds at the same time. But over the long term the demand is so high that despite all the accidents and headwinds which companies in this sector face, the overall trajectory of the sector is upward. Yes, the rate of growth in the different sub segments are very different and so are the returns in the short term. As a sector, it has been going through structural changes. Right from the entry of the new age fintech players in every subsegment to whose target is to get business by reducing the cost of transactions to mega mergers. Key Points
Economic TimesWorried about correction? This shall too pass, these bank stocks can give more than 20% returns, according
In the last one week, not even one sector has been spared by bears, they were seen across the street. It is time like this that one needs to look at the relative performance and before taking any buy or sell decision one simple question should be asked. The question is that a sector which was doing well when the news about higher GDP growth and other macro numbers were coming, has suddenly corrected, is there something changed for the sector or not. Because if some negative development has taken place in the operating matrix of the sector then it is time to sell, but if nothing wrong has happened to factors which determine the bottomline then why panic and sell. What impacts the operating matrix of the banking sector ? It is the overall economic growth. Banks provide the lifeline of capital to all the sectors which form part of any economy, whether it is retail loans or corporate loans. So when these sectors do well, banks have a higher credit growth. Is there any indication that economic growth is going to come down, not at all. So, let the trader react, not the investor. Key Points
Economic Times
Volatility is temporary, fundamental tailwinds are permanent: 6 stocks from engineering sector with an ups
If one looks at how one sector after another has been recovering, engineering which overlaps in some part with capital goods has been one of the last ones to see a recovery in real business sense. It is only in the last few months that one would these companies announce that either they have got orders or any other sort of other contracts. If one looks at the orders or contract wins, a number of them are showing quarter on quarter increase for almost the three quarters. There is a reason why these companies were last on the list to show revival. Only when the user industry which in this case ranges from chemical, and sugar railways to literally everyone else involved in manufacturing and utilities embarks upon a capacity expansion only then these engineering cum capital good companies would get orders and show an improvement. In the first phase of economic recovery, it was more of repairing both balance sheets and policy framework that took place. It is only recently that we have seen companies get confident and a new capex cycle getting started. Probably that is why some of the mid-sized players have been able to outperform even a volatile market. Key Points
Economic TimesA play on increasing spending on agriculture productivity: 4 stocks from irrigation pumps and allied secto
When markets are correcting, one thing that gets ignored is the macro trend. Trends which will have a long-term positive impact on the bottomline of the companies of that sector. In the last few years, both due to policy push and changes in the underlying economic nature of the business, more money is being spent on increasing agricultural productivity. While there are many parts to that increase in productivity, right from fertilizer to agricultural equipment, the other element in that chain is the irrigation system or water supply system for crops. Right from solar power water pumps to micro irrigation. This sector has a number of players who are unorganized, that is probably the reason why listed players in this space were not able to capture the whole growth which has taken place in this sector. But that does not take away the fact that this is one part of the rural economy where the spending trends are clearly rising. Key Points
Economic TimesBFSI stocks: They shed weight much before others do, time to be contrarian and buy?
The kind of correction the broader market is witnessing in the last few days, the financial services sector had seen that few months ago. Infact, if one looks at the overall picture this phase of correction was led by one private sector bank and the other parts of the BFSI came under pressure at the start of 2024. For two reasons, first is that RBI has been doing a policy tightening and regulatory cleanup excerise, so there were some margin hits coming in earnings. Second, they are heavily owned by foreign portfolio investors who have been sellers in the Indian markets. A large number of times they give an advance indication of what the broader market might look like in near term. Similarly, the other way round, these stocks on a relative basis have performed better than others in the last few days. The first streak of relative outperformance is good enough indication for them to be brought on watchlist. Key Points
Economic TimesFundamental tailwinds are a stronger play than volatile markets? 5 Indian pharma stocks with upside potent
There is no doubt that the market is going through a volatile phase and bears are once again telling the street to never write them off. Will this correction continue even longer ? The probability is high. But then every few months there is a phase of volatility which comes to market and stocks and sector corrects. Some more, some less. Instead of focusing on how much nifty or bank nifty or any other index is down or up, focus on the fact that whether the sector or company is doing well and will it do well in future because the fundamental operating matrix of that sector has changed for better. Because volatile phases come and go, changes in the operating matrix don't happen every day. Pharmaceutical is one sector where there is a fundamental change taking place and it has happened after 8 to 10 years of restructuring and painful readjustment. So, it would be worthwhile to have them on watchlist. Key Points
Economic TimesShort term correction don't dent the macro relationships: These bank stocks can give more than 20% returns
While a correction is taking place in the market and is visible in all segments of the markets. The question which needs to be asked is, why the correction is taking place. Is the reason any issue in global markets or local macroeconomic headwinds or is it just that valuations had seen a run up very sharply and now they are just correcting due to profit booking. At this point of time, the answer is the last one “ valuations”. But what about a sector where the valuations never were so high or a sector which has just seen a fundamental improvement in the operating matrix. Should that also see a correction? The fact when a broad based profit booking is happening than even the stocks and sector where are not in the over priced category will also see a correction. But probably those are the sectors which should be on the watchlist because when valuation readjustment is over, they might be the ones who would be leading the next round. Key Points
Economic Times
Is the worst behind them? 5 agrochemical stocks with upside potential of up to 38%
Majority of businesses have a cycle of ups and downs. The question is whether the downs are cyclical in nature or they have come up due to one off event. If they are cyclical in nature then is the cycle likely to turn around soon or not ? In the case of a one off event then whether that event's impact is going to be over or will have a deep impact or not ? In the case of the agrochemical sector there is a mix of both, it has an element of cyclicality because of the fact that it takes care of sectors like agriculture where there is seasonality and that brings in an element of cyclicality in agro chemical business. Also there has been one off event in terms of over inventory plaguing the industry globally. Will this be over, while it might be too early to say anything in an industry where China is the dominant player, but surely it would be worthwhile to bring them back on the watch list. Key Points
Economic TimesIs the worst of headwinds behind them? 5 agrochemical stocks with upside potential of up to 32%
While they had been listed for a long period of time, Indian companies in agro chemical space got the real attention of the street only four years back. As many tailwinds appeared on the scene, there was strong re-rating of the whole sector. Typically, what happens when a sector gets re-rated is that valuations run ahead of time and there are too many eyes which are watching the sector. So, if there is even a little bit of disappointment, the selling pressure is also equally high. In the case of agro chemicals there were some real problems which came up soon after the re-rating took place. Chinese companies become overactive and dumping, globally inventory levels reaching very high for some segments. As every business has a cycle, it is worthwhile to bring stocks on your watchlist when the business cycle is down. Key Points
Economic TimesTowards a Viksit Bharat: The farm sector must play a bigger role in our economy
Prioritizing infrastructure and logistics capacity in the agriculture sector may help revive primary sector growth. For an inclusive journey towards developed country status, agriculture mustn’t get left behind. Key Points
mintBest way to play on growth of Indian economy: These bank stocks can give more than 18% returns
After a very short phase of a correction, several PSU bank stocks were the top gainers in Tuesday's trading session. Today on Wednesday they are trading with minor cuts and some of them have seen intraday recovery. This is worth noting for two reasons. First, all PSU banks are sitting with a decent amount of gains for the last five months, and even then they have not witnessed a sharp decline. Second, on Tuesday, the breadth of the market was weak. Suddenly PSU turns into an outperforming set of stocks. It signals a couple of things. First, because the banking sector is probably the best proxy play to the Indian economy. It appears the view on the street is positive on economic growth. Second, rather than taking exposure to an individual sector, taking exposure to PSU banks which are still among the lot that are available at relatively cheaper valuations is a trade on the street. But should one ignore the private banks? Probably not. They have their trajectory and just because they have not performed on the street it does not mean their core business model has some issues.. It's just another phase that shall pass. Key Points
Economic TimesInternal re-rating? 7 stocks from financial service sector with upside potential of up to 26%
In the correction that markets saw in the last four trading sessions, the financial sector stocks, right from banks to other players also declined. But if one looks at the magnitude and the internal breadth of the sector it was much better as compared to a month back when the market correction was started by HDFC bank. There was a bit of profit booking in the PSU bank space, but once again after a small corrective move, things were back with a strong intraday recovery. The way things are panning out in the industry with regulatory tightening taking place, there is very likely that we might see a divergence in performance of different segments of this sector which has the highest correlation with the GDP growth. Better balance sheets and strong franchise are likely to be the differentiating factors. The factor which is largely technical in nature is the shareholding patterns that will also impact the performance of the stocks from this sector. Key Points
Economic Times
Tailwinds called tenders: 6 companies from road construction and infrastructure sector
While every sector of the economy has been witnessing an improvement and policy push, one sector which was the first one to come in the focus of the government was the road construction sector. At first, it was the central government, but if one looks at how important it has become for gaining political capital, every state government has been focusing on road and highway construction. The impact of a coordinated effort between state and central government is that the lead time for the construction of roads comes down very sharply. This means that the working capital of the company which is part of this whole process of construction of roads comes down sharply. Given the fact the margins in the infrastructure business are not very high, an improved payment cycle itself leads to better overall margins. We take a look at six companies which are involved in this sector, the reason why at this point of time is because tenders which have come in the last one month are dominated by road construction and coal-based power projects. Key Points
Economic TimesBank Nifty is way weaker than Nifty; positive on realty & pharma sectors: Meghana Malkan
Meghana Malkan believes realty and pharma sectors show potential for trade. She highlights specific stocks to watch, cautions about weak resistance for Nifty, predicts a drop in Bank Nifty, takes a break from PSU sector, and has a mixed view on the IT sector. In the case of IT, she would prefer to really adopt a wait-and-watch approach. Key Points
Economic TimesAutomobile, pharma, tourism sectors expected to grow at rapid pace: PM Modi
Automobile, pharma, tourism sectors expected to grow at rapid pace: PM... Key Points
The Tribune IndiaFor next 3-4 years, PSU banks can be a good bet: Sunil Subramaniam
Sunil Subramaniam prefers good quality in portfolio, whether PSU or private sector, due to capital adequacy and government ownership ensuring governance. He sees value in TVS, M&M, Tata Motors, Maruti. Two-wheelers and entry level passenger cars expected to bounce back. Bullish on commercial vehicles due to capex and election cycle. Ample liquidity in market, mid and smallcaps attracting investment. Key Points
Economic TimesRelative outperformer candidates for a volatile market? A mix of large and midcap IT stocks
On Monday, when the whole market was reeling under pressure, there was one sector which was able to keep its head above water both at the level of indices and internal market breadth of that sector. It was IT sectors, it is not the first time that this relative outperformance has been witnessed on the street, in recent months, there have been instances where on the day market has been under pressure, IT stocks have moved upward. The only difference is frequency, magnitude and the breadth of the sector which is involved on the day of outperformance by the sector. Frequency has increased, more IT from large cap are able to relatively outperform and magnitude of up move is better as compared to earlier. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores. Key Points
Economic Times
ETMarkets Fund Manager Talk: This fund manager sees investment opportunities in 6 sectors during a rate-cu
Siddharth Voraa says: Within this broader landscape, while Indian equities do reflect steeper valuations, they continue to be supported by robust domestic macros and fundamentals. Despite indications of elevated valuations based on various fundamental and technical metrics, historical trends suggest that premium valuations and euphoric sentiment in markets can persist for 3-6 months on an average before normalizing. Key Points
Economic TimesTailwinds of restructured operation and capex cycle: 5 stocks from engineering sector, 2 with upside poten
One sector which bore the brunt of the winter of capital spending was the capital goods and engineering sector. However, thanks to capital expenditure by the government, segment by segment they are making a comeback. First road and infrastructure, then defence and railways. The million dollar question is what next ? There is a high probability that not one but a host of sectors and their sub segments might be getting added to the list as private sector capex shows signs of revival. This would mean that more engineering and capital good companies would see a better order book. The only difference is that unlike railways and defence where one large order comes to be implemented over years. When orders from a pharma, chemical cement or a private sector power company comes, they tend to be smaller in size but to be implemented in a shorter time frame. Key Points
Economic TimesBenefiting from higher GDP growth: 5 logistics companies with upside potential of up to 45%
The whole logistics sector has seen a major shake-up in the last few years, right from tech aggregators who came into the scene with a promise to disrupt, challenges that Covid brought on the table to a phase where oil prices become a pain point for margins. After all the challenges, the sector has emerged stronger as some companies restructured their operations to stay profitable. There are many facts about the logistics industry which might surprise many. Just to mention a few, a metal major has such a large fleet of owned trucks that the unit itself can be listed as a separate company and probably would figure in the top 5 logistic companies. Last year at one point of time, the market cap of one single company was higher than the market cap of all the private sector companies put together and interestingly that company was in the red. Key Points
Economic TimesCabinet nod to Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana with an investment of over Rs 6,000 cr
The Sub-scheme will be implemented as a Central sector Sub-scheme under the Central sector Component of the PMMSY at an estimated outlay of Rs.6,000 crore consisting of 50% i.e. Rs.3,000 crore public finance including the World Bank and the AFD external financing, and rest 50% i.e.Rs.3,000 crore being the anticipated investment from the beneficiaries/private sector leverage. It will be implemented for 4 (four) years from FY 2023-24 to FY 2026-27 across all the States and UTs. Key Points
Economic TimesIndian telecom sector may see FDI revival from FY25
India's telecom sector anticipates a surge in foreign direct investment (FDI) over the next two years following recent policy changes. The opening of satellite communications and the introduction of the Telecommunications Act are expected to attract investment and enhance sectoral appeal. Despite a recent FDI decline due to domestic funding availability and sporadic investments, experts foresee increased FDI inflows with these regulatory reforms, signaling potential growth opportunities for the industry. Key Points
Economic Times
RBI may issue clarification on Paytm in view of large user base
Amidst the Paytm controversy, Financial Services Secretary Vivek Joshi hinted at potential Reserve Bank clarifications due to the platform's extensive user base. Joshi highlighted the central bank's consumer protection focus. He affirmed the strong performance of public sector banks, emphasizing minimal government interference. Joshi outlined upcoming financial sector reforms, including amendments to banking and insurance laws. Additionally, he discussed strategies for capital infusion, addressing bank performance, and plans for distressed asset resolution. Key Points
Economic TimesVision 2047: India’s plans for the telecom sector
The Department of Telecommunications (DoT) has firmed up its vision for 2047 and policies will be framed to meet the following targets it has set, according to people in the know. The government has been formulating policies to achieve its objectives for 2047. Key Points
Economic TimesIndia’s factory employment crossed pre-pandemic level in FY22, investment also picked up pace
India's factory employment grew by 7% in FY22, surpassing the pre-COVID level, as per the Annual Survey of Industries. Investments and output also increased, indicating the country's recovery from the pandemic. The manufacturing sector showed resilience after the adverse effects of the pandemic, with a marginal fall in employment in 2020-21. Key Points
Economic TimesNabard projects 16 pc jump in priority sector lending potential in Bengal at Rs 3.15 lakh cr in FY25
Kolkata, Feb 3 (PTI) The National Bank for Agriculture and Rural Development (Nabard) on Saturday projected a robust double-digit growth in priority sector lending potential of Rs 3.15 lakh crore in West Bengal for 2024-25. Nabard’s Chief General Manager Usha Ramesh unveiled the West Bengal state focus paper on Saturday alongside bankers, State Chief Secretary […] Key Points
ThePrintPSUs basket was the darling of 2023. Will it be a repeat in 2024? A Balasubramanian answers
The finance minister's brevity in the announcement reflects the clarity in India's vision statement going forward. The confidence in the finance minister is backed by the success of government programmes, rising per capita income, and emphasis on infrastructure investment. The PSU sector will benefit from the efficiency of public sector companies, their business potential, re-rating, investments in ROI and technology, and their support to the government. The divestment target of Rs 50,000 crore indicates further opportunities for the PSU space. Key Points
Economic Times
Farm-to-fork voyage: Investments in upgraded storage, streamlined supply chain will enhance competitivenes
The budget offers a roadmap for empowering farmers, ensuring food security, and propelling the agricultural sector towards a brighter future, said Balram Singh Yadav, managing director, Godrej Agrovet. The measures pave the way for inclusive, sustainable growth in the agricultural sector. According to several estimates, more than 40% of the produced food gets spoiled even before it reaches the consumers. Key Points
Economic TimesBudget 2024: India needs investment appetite for green energy
There is an urgent need to increase RE capacity addition from the present level of 15 GW per year to 50 GW per year, along with a tripling of investments. The upcoming Union Budget 2024 is an opportune time to make suitable provisions for increasing the investment appetite in the sector. Key Points
Economic TimesOpportunity in headwinds with a long-term perspective? 5 agro-chemical stocks with upside potential of up
Three years back, the whole agro chemical sector got rerated and some of the Indian companies which are focussed on domestic markets getting their fair share of attention from the street. But then they faced sudden headwinds as the Chinese companies once again became over active. Some time headwinds which bring a phase of underperformance in stocks are opportunities to enter those sectors and stocks with a long term perspective, because on the macro front the sector has more plus than minus. If one looks at what management of these companies have stated in recent past is that some of these headwinds are due to inventory issues which are getting over. Is the worst of the issues behind the agro chemical companies? Key Points
Economic TimesBudget 2024: Exporters body seeks global shipping line, extension of manufacturing sop till 2027
The Federation of Indian Export Organisations (FIEO) has urged the government to develop a global shipping line in partnership with the private sector and provide tax incentives for research and marketing activities in the upcoming Budget. It also suggests extending the sunset date for commencing manufacturing and increasing weighted tax deductions for R&D. Key Points
Economic TimesA tale of India’s two big export industries: And a lesson on incentives
We’re talking about petroleum and IT service exports. Policymakers must not distort incentives too much in favour of industries, but aim to create a level playing field. Key Points
mint
Sectoral tailwinds and stronger balance sheets: 5 largecap stocks with right mix of two important ratios
There are some sectors where large players have an edge, because the nature of the business is such that there are phases where ability to stay in the game and cash on the balance sheet matter most. When the tide turns in favor of that sector, these large companies are able to make most of it. One sector which has gone through a phase of realignment of business and readjustment of valuations for many years and has once again come in limelight is the pharma space. Right from ability to deal with USFDA, not rely just on product segment to how to deal with uncertainty of supply chain which is dependent on China, Indian pharma companies have come a long way. Key Points
Economic TimesBudget 2024: MSME expects special package from Sitharaman on February 1
MSME sector urges Finance Minister Sitharaman for special package in interim Budget 2023-24 to ensure increased access to credit at competitive rates for USD 5 trillion economy; holds importance before general elections. sector contributes 29.15% to GDP. Focus on addressing uneven power dynamic, lack of competition, and weak grievance redressal mechanism with banks. Key Points
Economic TimesPrivate sector capital revival on cards? 5 engineering stocks to benefit, 3 with up to 30% upside potentia
In the last nine years, it has been government spending which has been at the forefront of capital expenditure. But if one goes by the recent estimates of sanctioned loans by the banks, there are indications that private sector capex which has been at the literally non-existent for quite some time might be coming back. Which sector in the capital good space will gain is a big question because capital goods and engineering is a very broad term. From a company making small machinery parts to one making a large turbine for power generation all tend to get clubbed together. But they are all different, both in their ability to perform complex tasks and the industry they are catering. Key Points
Economic TimesUse headwinds as opportunity for investing in strong balance sheets; 5 stocks with up to 29% upside potent
Sometimes a rationale which goes against owning a set of stocks at the start of a bull run, comes in handy in the case of a correction in stock markets. There is one sector where business updates from companies talk in the common lingo. First one is: growth will be muted. Second, margins will be under pressure due to cost inflation and third, competition is increasing in different categories. The sector is FMCG where the narrative is that it is a bad time to buy FMCG stocks. Probably, it is time to take a contrarian call in this sector. Key Points
Economic TimesPlay on higher GDP growth; 7 logistics companies with an upside potential of up to 53%
Logistics is a very broad term, right from warehousing companies to goods transporters all form part of this chain. But if one looks at the listed space in India, it is transportations companies which dominate. Logistics as a sector has seen many headwinds both in terms of operations and structural challenges. Any sector which goes through this phase tends to bring out clear winners and that is when we tend to see a re-rating. It is a sector which is direct play on the economic growth of a country. The reason, if the economy is doing well, more goods will be produced and they will have to be transported and that is why in large developed economies, logistic companies form part of a very important transportation index. Given the recent GDP numbers have been better than expected and it is projected that for the next couple of years India would be the fastest growing economy, the logistic sector is likely to remain in focus. Key Points
Economic Times
Hospitality sector gets its mojo back after Covid lull as jobs zoom 271%
The tourism sector's surge after the Covid-19 pandemic has led to a significant increase in hospitality hiring, with entry-level jobs experiencing the sharpest surge in the last two years. Apprentice and trainee hires have seen a 54% CAGR rise in the last two years, while hiring in the hospitality sector rose by around 271%. Key Points
Economic TimesTime to check in? 4 smallcap hotels stocks for taking exposure to booming tourism spend
It might surprise the majority that the first sector to get re-rated post liberalization in 1991 was the “ hotel sector”. The reason, it was expected that both business traffic and tourist traffic to India would see a boom. In fact it did happen but then as usual , many new players entered and existing players in their wisdom took debt to expand presence and we saw the industry getting into trouble. It is almost after two decades that in covid and post covid, there has been a consolidation. Many builders who turned into hoteliers are the ones which have been moving out of business. Key Points
Economic TimesSuckers’ rally maybe coming up; stay close to the exit: Rahul Sharma
Rahul Sharma says: “We have seen a dip at the beginning of the year and now Nifty is ready to propel towards the 22,000 mark. We strongly feel that there is a strong chance of a sucker's rally coming into play. We may be well towards the end of this mega up move that we have seen in the last couple of months. We can continue to party but stay close to the exit.” Key Points
Economic TimesShould one be extra cautious in 2024? Pashupati Advani answers
Pashupati Advani says: “The public sector is driving the boost in the economy. One should be bullish on those enterprises. Plus, the government will probably sell some shares off in the secondary markets. Some of them are even looking interesting to buy at these levels because I am presuming the government will want to sell at higher levels.” Key Points
Economic TimesPredictions for 2024: Space, AI & Medtech to see breakthroughs
Next year is predicted to see three major technologies in India's economy: space, AI, and medtech. The space sector is expected to experience exponential growth due to the government's openness for private participation, forming the basis for 6G communication. Startups in space-tech will be needed to create indigenous satellites and develop solutions to societal problems. Key Points
Economic Times
Headwinds are an opportunity for long-term investors: 6 agro-chemical stocks with upside potential of up t
Majority of businesses have a cycle of ups and downs. The question is whether the downs are cyclical in nature or they have come up due to one off event. Agro chemical sector is in a down cycle due to one off events. Sudden increase in inventory in the industry, oversupply which came into markets to resumption of the Chinese production post covid curbs. That is the reason that the sector which did extremely well in the first part of the bull run which starred post covid has been underperforming for some time. Given the fact that in the last three months, the problem of over inventory in the system has started to reduce. Is the worst of the issues behind the agro chemical companies? Key Points
Economic TimesNext in line to get re-rated? 6 fertilizer stock ideas with four having buy reco and upside potential of u
While it has been slower as compared to other sectors, even the fertilizer sector has been witnessing policy changes which have intended to plug loopholes and increase the operational efficiency of the companies. Given the policy measures, it would be worth bringing them to watchlist because if a re-rating takes place then we could see a sharp move. But one thing which one needs to remember is that in such sectors some time invested capital can underperform for some time. Key Points
Economic TimesKashmir attack: Massive search operations on; forces see Pak-China nexus to revive terror
Defence sources said that terror activities in the sector have spiked in recent years after the Army moved the Uniform Force of the Rashtriya Rifles to Ladakh to counter Chinese aggression in 2020. Troops with the Rashtriya Rifles - a specialist counter insurgency force - were moved to Ladakh after China brought in thousands of troops to disputed areas along the Line of Actual Control (LAC). Key Points
Economic TimesRevival in IT stocks likely to continue in new year
While Accenture's latest growth guidance is indicating a subdued near-term outlook for the sector, fund managers and analysts said the US central bank's dovish tilt has reduced the risk of earnings downgrades. The next big trigger for the sector would be signs of deal wins by IT firms, they said. Key Points
Economic TimesIs the tide changing for financials ? 4 stocks from the sector with right PEG ratio
Financial sector stocks are the preferred pick of institutional investors. The reason, some of them can also act as a proxy for GDP growth. After a gap of two months, September and October, FPI have been net buyers in the month of November and till date in December. After a phase of under performance, there are first signs of some of them making a comeback attempt. We take a look at stocks from this sector where one valuation matrix meets the criteria for investing for the long term. Key Points
Economic Times
India's informal sector may be adding more value to its economy than we know
Arguments that the size of this sector—and contribution to GDP—is overestimated are flawed. PLFS data suggests that it's far likelier to have been undercounted. Key Points
mintCEA Anantha Nageswaran exhorts private sector to begin investment
V Anantha Nageswaran, Indias Chief Economic Advisor (CEA) said that the private sector is conserving its resources rather than investing. While advising the private sector to invest, he said, Waiting for demand to arise before they start investing will be to delay the onset of such demand conditions happening. Key Points
Economic TimesIndia's services activity falls to a one-year low yet prospects remain strong: PMI data
India's services sector showed resilience in November, registering a PMI of 56.9, its slowest expansion in a year. Despite below-expectation performance, it remained above the growth threshold of 50. PMI's new business sub-index declined for a second month, signaling weakened demand. Business confidence and hiring slowed, reflecting concerns, while operating costs and prices rose at a subdued pace Key Points
Economic TimesRotate partly from small to largecaps before FIIs descend on India: Saurabh Mukherjea
“So the trips that were being planned for say June-July, have been preponed to December and the FIIs from all over the world descend upon India over the next month or so. In fact, over the next two weeks or so as they load up on India. So there is a preponement of roughly six months in their purchasing. It happily coincides with the top global interest rate cycle.” Key Points
Economic TimesFull potential of dairy sector yet to be tapped: Union minister Parshottam Rupala
Union minister Parshottam Rupala on Sunday stressed the need to tap the entire potential of the dairy industry in the country, maintaining that only about 25 per cent of the total milk produced is sold through the organised sector. He urged the youth to engage in the dairy sector by employing the latest technologies to ensure a substantial earning. Key Points
Economic Times
Will the re-rating continue? 4 defence stocks with “buy” recos having upside potential of up to 22%
While the prime minister Modi flying in tejas has brought HAL into headlines. But there is more to it, the defence sector has seen a transformation and the street has been re-rating the stocks from this sector. Policy initiatives by the government led to changes both in the actual working and perception of defence sector companies.Their order books are brimming, stocks have outperformed the broader market indices and institutional interest has been growing in these companies. The question is whether this re-rating will sustain ? Key Points
Economic Times4 southern and western India focused real-estate stocks with upside potential of up to 25%
One global crisis to another. This probably sums up the story of the real estate sector in India. It was the global financial crisis of 2008, which hit the real estate sector very badly. It was the global covid crisis, which got it out from the dumps. Excess inventory, over leveraged balance sheets and weak demand were some of the factors which plagued the sector till 2020. Post that period, excess liquidity, the need to have a bigger house, companies having learnt lessons about what not to do when time is good probably defines the listed real estate sector in India. Key Points
Economic TimesNifty50’s earnings cup: Key highlights for September quarter
The standout feature of this earnings season has been the expansion of margins by 694 basis points YoY, reaching a remarkable 30.14% for the quarter. This was propelled by the strategic benefit reaped from the decline in input costs. Key Points
Economic TimesNifty Financial Services stocks: Current challenges by RBI may be an opportunity for long-term investors
It is not the first time that RBI has taken measures to curtail unsecured lending. In past also there has been instances when banks and NBCF’s got aggressive to push credit growth and RBI has to tame them, first through verbal advice in public forum than then through rules and regulations. But the fact is that in capital starved countries like India, demand for credit will always remain high. This means that despite all the short term issues, in the long term a good lender which has a risk management system in place will be able to grow its top and bottom line. Key Points
Economic TimesRight mix of commercial and residential matters: 5 real estate stocks with upside potential of up to 47%
Like business and economic cycles, stock markets also have cycles where they will take a liking to a particular sector in such a manner that valuations will go through the roof. Then comes a phase, where the same sector is thrown down the dumps. Real estate sector is one sector where in 2008, valuations were at their peak. then come and fall and by the start of 2020 valuations were in the dumps. While they made a comeback when covid rally took place in 2020, multiple factors have kept the focus on the real estate stocks for the last more than two years. Given the changes which some laws have brought and the fact that some promoters have learnt the lesson the hard way, will the real estate stock be able to deliver consistent returns? Key Points
Economic Times
Finally Street lights up for them: 5 power sector stocks with upside potential of up to 36%
In 2008, the IPO of a power company got subscribed in less than a minute of its opening and the size of that issue was Rs 11,563 crore. This just shows the desire to own power sector stocks at that point of time. From those days of frenzy to the nadir in 2014, when power companies were on the top of the list of NPA of the banks. Power companies have seen both the extreme of valuations. It is a sector where after many failures and to some extent a consolidation, some companies have emerged which know how to deal with all kinds of economic and industry cycles. That is probably the reason why a number of companies from the power sector have seen a sharp re-rating in the last one year. Hoping the survivors have learnt their lessons. Key Points
Economic TimesIn times of volatility, boring but stable bottomline; 5 power sector stocks with an upside potential up to
For all those who have entered into the stock market because they started work from home, it would be worthwhile to know that between 2006 and 2008, the state of the power sector was pretty much similar to what we saw in new age companies in the middle of 2021 to some extent even today. Super optimistic estimates of growth of the sector. Then comes the reality check, for almost 12 years, power stocks were down in the dumps. Now once again the sector is in the limelight for different reasons. The story has a list of power companies with“buy” and “strong buy”, reco from analysts. Key Points
Economic TimesConsumption story drives India Inc's credit quality even before the festive season
India Inc's credit quality has improved in the first half of FY24 due to strong domestic consumption and investment-focused sectors, according to a report by ICRA. Both investment grade and non-investment grade categories saw an improvement in their credit profiles, with sectors such as hospitality, auto components, power, realty, roads, and financials accounting for nearly half of the total upgrades. Key Points
Economic TimesHospitality sector on hiring spree as festive season nears
The hospitality sector in India is experiencing a shortage of staff and is now hiring additional talent for various roles in hotels and restaurants. The Tourism and Hospitality Skill Council is conducting a study to analyze the skill gap in the industry nationwide. Key Points
Economic TimesEV infrastructure may be included under priority sector lending
We have received a representation to include EV infra in the priority sector. We will look at reworking the priority sector lending (PSL) requirements for banks, the official said, adding that the issue will be discussed with the Reserve Bank of India (RBI). The power ministry has also written a letter to the Department of Financial Services in this regard, the official said. Key Points
Economic Times
Nifty Financial Services index: Is buying a whole basket of these stocks a better option in volatile times
Financial services is a sector which comes under the category of being over owned by foreign portfolio investors. So whenever there is a global issue like the US Fed meeting or inflation risk, it is the financial sector stocks which tend to come under pressure. Will statements from the US Fed which come out after the Jackson hole meeting bring pressure on this sector once again.We take a look at what analysts are saying for all the financial service stocks which are part of the Nifty financial services index. Key Points
Economic Times4 southern and western India focussed real-estate stocks with ‘strong buy’ recos have upside potential of
One sector which did not recover from the shock of the global financial crisis for more than a decade was the real estate sector. Excess inventory, over leveraged balance sheets and weak demand were some of the factors which plagued the sector. Although the process has been slow, it took almost a decade but there has been a clean up in the sector. Regulatory changes like bringing in RERA and banks getting aggressive in recovering dues from builders and also judicial intervention had an impact on the working of the industry. Key Points
Economic TimesLooking for value? It is largely infra and cement, says Sunil Subramaniam
Infrastructure and cement sectors offer good value in the market. He notes that the infrastructure sector is richly valued due to the order book and future growth, while the cement sector has experienced a price correction and is now undervalued, says Sunil Subramaniam. . However, he does not consider PSU banks to be undervalued, as there is always a discount compared to private sector banks. Subramaniam also expresses concerns about the metals sector. Key Points
Economic Times