It was full budget for some: 7 mid and smallcap stocks from fisheries, animal husbandry sector

In the last two months, there have been phases where the nifty has witnessed a short correction which lasted for anywhere between two to four days. The only difference is that unlike the past when such correction took place, this time when corrections are taking place mid-cap segment also participated. This is indicative of profit booking happening at the broader market level. At this point of time, one cannot rule out volatility which can bring more damage to stock prices in the mid-cap segment. In such times, if one is taking fresh exposure to equity, ensure that there is some level of quality as far as the business and fundamentals are concerned. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

Gone are the days, when a single company was considered a bellwether for IT sector stock. Today, whether it is a large or mid sized company, all have different focus areas and hence their quarterly results tend to differ from one another. 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.

One change for making higher provision for unsecured loans and we see all the NBFC stocks tumbling. But four weeks later what is the situation, no one on the street is even talking about it and stocks have crossed the level when the announcement was made. The fact is that some regulatory measures are indicators of overall growth potential which the regulator is just trying to moderate in order to avoid overheating of some segment of industry. The other question is that an industry like NBFC which is bound to grow given the fact that capital was, is and will remain a scarce commodity, which are the benchmark which one should use to take exposure with a long term perspective.

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.

There are many sectors which have been able to do well because of policy push by the government. Many may not realize that “Tipper” which is a kind of light commercial vehicle ( LCV) did extremely well due to the fact that it is used in road construction and in the last eight years, that has done extremely well. Similarly a tile company did well because there was a housing boom and auto ancillary which was focussed on EV did well due to push to EV. Now with increased probability of continuation of policy push, some of these sectors and companies are likely to see continued tailwinds. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.

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.

While the recent performance of stocks like REC, PFC and recently listed IRDEA has brought focus back to one segment of power companies. But the fact is that in the last few years, the sector has been going through a consolidation. Some of it was forced by the banks due to many companies going under the IBC and some due to the fact that any industry which has gone through a troubled phase of almost a decade, the players who are able to survive tend to get more attention because they have learnt the art of surviving a tough phase which is one most important feature for long term survival. Power sector stocks are now catching up with what the market has witnessed in the last few years.

As other sectors dominated by PSU companies come into limelight, defence stocks which ignited the re-rating of PSU stocks have moved into consolidation mode for some time. The question is whether the business is in consolidation mode or not, the answer is tilting toward no. It appears the underlying developments in the sector continue to be going at the same pace or rather even more. Allowing 100 % FDI in space related industries, is probably an indication that focus on defence and related sectors continues. As things are shaping up, it appears the exports would also become a focus area.

At a time when everything on the street appears good and green, there is a case of being selective. The reason, if it is in a raging bull market, the street never stays in this all good and green mode forever.when the street starts to become selective, it is stocks where there are some improvement in the business operating matrix tend to weather the storm better. So as an investor, one needs to look at every sector and company and their operating and valuation matrix separately. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.

While all the headlines have been hogged by new age companies and sectors, there has been a sharp surge in valuations in one sector which has performed extremely well in the last two years. It i the hospital space and it is still under the radar. The post listing performance of IPOs from this space shows that both domestic and institutional investors are ready to pay a premium to have these stocks in their portfolio. Given the macro picture , it has a secular growth trend as per capita spending is likely to continue to increase.