Page 3 - Elixir Equities News Today

“Over the last couple of years or so, a lot of IT companies have won multi-million, multi-year orders. They are sitting in a good order book position. It is just that execution has not started or has got delayed because of the uncertainty in the environment in the US and in Europe economies. But once the uncertainties over there go down, tech spending will be the first off the block from a management perspective.”

“If you have got an allotment in Tata Technologies, stay put, do not sell just because of a whiff of negative news flow. But buying on listing at a huge premium is something I would really like to avoid. You can average it if you already have an allotment in the IPO, but I would not look at making fresh investments in Tata Tech at these levels on listing.”

“Now that the US markets have stabilized as have the debt markets and inflation seems to be coming under control, one could expect better prospects for all the technology companies – Tata Technologies, Tata Elxsi, TCS. Companies like Trent and Titan have been outliers. Other companies per se have done badly in the same group, but they continue to thrive pretty well.”

“Southern India is a great source of value creating companies. These are nice low profile companies. They just get on with their business and deliver exceptional returns. CG Power has been a fantastic multibagger stock and what a fantastic turnaround story it has been and kudos to Tube Investment for identifying this opportunity and buying into it and turning it around so quickly and creating so much value for the shareholders.”

“If you are already holding QSR stocka, then these are not the levels to sell because we have seen decent corrections also in them. From a longer-term perspective, I am pretty certain that the QSR companies can deliver exceptional returns going ahead and you could perhaps buy at every decline, rather than just chasing these stocks at this point of time. ”

“Across the board, I do not think there is any sector which is highly overvalued per se. But in two to three sectors, especially the external facing ones, like chemical and software, an investor needs to be a bit cautious. I would like to remain underweight in these two industries.”

“I really do not understand the global setup, the way it is, and why FII selling continues despite India shining and despite so much positive news globally on India. That is a difficult phenomenon to understand. And yet domestic flows remain extremely strong. So this is the time to focus on individual stocks rather than the market as a whole. ”

"The case with L&T and some of the other largecap companies is that relentless FII selling is keeping their stock prices pinned down. So what if it is 24-25 times, 26, 25 earnings, it is a great buying opportunity and that will support further appreciation in the stock price. So rather than analysing why it is available at attractive valuations, I would say that it is a good entry point. Again, a disclosure, we and our clients are invested in it."

​And I think that is what is happening. And this will continue, I think, till we see some sort of shakeout within the banking sector or the NPA cycle starts to pick up, which is when the smaller banks will feel the pain far more than the larger banks.

On Dalal Street, investors are betting big on the boom with the Nifty Realty index now trading at 15-year high levels.