Key Points
Amit Khurana, Head of Equities, Dolat Capital, says we believe a broader correction of up to double digits on the Nifty should be par for the taking and within that, you will see some of the sectors probably correcting more..
But some of the other categories which have done absolutely well, for example, hotels or for that matter jewellery, some of those discretionary consumption stocks, autos have done pretty well..
On banks, we have been very bullish, but I think the markets just seem to keep derating the franchises because of concerns on NIMs and this entire higher interest rate regime, which earlier we thought will possibly start unwinding from June onwards, but the latest policy from the MPC seems to suggest it more moving towards August as the first rate cut scenario and therefore the concerns on banking names continues to play out on the negative side, but we believe that the sector is in pretty reasonable attractive valuations, especially the frontline largecap banks...
There are some other developments which are also likely to come in the public domain as per the management guidance, which will give a sense as to how the move to the third-party banks will work out and that will be an important development from our perspective also because if the transition works out seamlessly over the next few months, then the confidence may return to the company and therefore, the risk premia that the market is today demanding on this as a franchise may sort of normalise...
Now, a long-period average, all these things have come into play on expectations of a third term for the Modi government, continuation of the PSU cycle, the rerating cycle which is continuing right now, and a whole lot of other positive optimism captured and a large part of that was also the fact that the interest rate cuts would start sooner than later...
You might be interested in
Best way to play on growth of Indian economy: These bank stocks can give more than 18% returns
07, Mar, 24After 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.
Day trading guide for today: 4 stocks to buy or sell on Wednesday — 22nd March
22, Mar, 23Day trading guide for today: Indian stock market is expected to remain in bullish trend in near term, believe experts
Day trading guide for stock market today: Six stocks to buy or sell on Tuesday — 16th January
16, Jan, 24Day trading stocks: Market experts have recommended six stocks to buy today — Shriram Finance, SJVN, Jindal Steel & Power, Dabur, Mazagon Dock Shipbuilders and JK Paper.
Buy or sell: Vaishali Parekh recommends three stocks to buy today — 26th June
26, Jun, 23Buy or sell stocks: Vaishali Parekh has recommended three stocks to buy today — BSE, Railtel and Shanti Gears
BFSI stocks: They shed weight much before others do, time to be contrarian and buy?
16, Mar, 24The 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.
ETMarkets Smart Talk: Golden opportunity! Broking, defence, green energy among 5 sectors that could create
29, Feb, 24Robin Arya says: The consistent flow of monthly SIPs indicates a tremendous opportunity in the broking and wealth management space. Defence is another sector we see with the potential to change dynamics and deliver significant returns in the next 3-5 years. Volatility ensued post-budget, but Nifty managed to hold crucial support levels.
Buy or sell: Vaishali Parekh recommends three stocks to buy today — December 18
18, Dec, 23Buy or sell stocks: Vaishali Parekh has recommended three stocks to buy today — Aarti Industries, Federal Bank and Tinaplate
Nifty to gain above 17,700 or extend losses? Check 7 key things to know before share market opens
19, Apr, 23The SGX Nifty is trading in the red on Wednesday, hinting at a negative start for Nifty and Sensex. Here are seven key things to know before market opens.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 44%
07, Nov, 23After the last few weeks of correction, while the broader market indices like nifty and sensex are inching upward once again, given the fact that some of the headwinds are still present, it would be still be better to ensure that caution is the word which stay in one's mind while looking at stocks. Caution in terms of the socks where analysts are bullish because of one or the other reason even when markets have been volatile. In the last quarter of the current financial year, it is time to take a step back, think and then make a decision both when buying and selling any stock as global flows have high probability of changing directions. These selected stocks depict a strong upward trajectory in their overall average score. This implies that there has been a significant improvement in their market outlook in the given time frame.
Stock picks of the week: 4 stocks with consistent score improvement and upside potential of up to 35%
12, Mar, 24While today the movement of the Nifty and Sense will make a number of people think that a correction is taking place in the market. The fact is that the market has been correcting for some time. If one looks at the trend in the advance decline ratio, on the day market is shedding weight, then the advance decline is very negative and even on the day nifty is moving upward, the improvement in the advance decline ratio is not that high. At this point of time, one cannot rule out more profit booking 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.