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The movement of nifty and sensex needs to be delinked with what has happened in the last quarter and what might happen to mid-cap in the coming quarter. There is no way one can fight with liquidity, if it is going to mid caps and they are moving up irrespective of valuations or quality of stocks one cannot argue. But the only thing which as an investor one can do is to be careful when taking exposure to this segment of the market. Stay away from stocks where there is a narrative that this sector...

While the under current of the market is still bullish but as corrections and consolidation are part of every bull market, nifty is moving in and out green, there are clear signs of profit booking taking place in the broader market with market breadth not being as positive as it used to be. While the initial part of any volatility is led by large caps, there is a higher probability that the large caps are able to stabilize much before any part of the market. So, if one is thinking of fresh expos...

How a set of stocks reacts to the news is one of the variables which give a fair idea about whether the stock prices have bottomed or not. If there is consistent negative news or even a narrative and the stock refuses to come down then it is an indication that probably the market has discounted the adverse news. Now lets use the same thing on Infy, TCS and HCL tech Q3 results reaction. The companies which have seen muted growth and given similar guidance, did not do something which was very dif...

Cement has been a sector where most of the analysts have been caught off guards. The stocks have done well and a large number of analysts have been sticking to their stands that pricing and capacity utilization is an issue. What they probably ignored was the fact that any industry which has been facing headwinds for a long time tends to sort the issues and few players are able to make a comeback as consolidation takes place. Pretty much what we have seen in power.

When the street is under absolute control of bulls, one of the things which they throw out of the window is the “sense of risk”. There are two kinds of risk in equity markets, first the overall market or asset class risk and second is individual risk. First risk is not under control of anyone, because it can hit the market due to any reason, right from any geopolitical uncertainty to any monetary event in any part of the world. But the second risk which is individual risk is about th...

After a short rational correction, bulls were once again seen on every corner of the street. While being bullish, it is extremely important not to forget the fact valuations are high and everything seems to be priced to perfection. In such conditions, for investors who are looking to increase their exposure to stocks, it would be better to focus on fundamentals and if there is any improvement in them which has made the overall score go up in the last one month then have a look at those stocks. T...

In a market where bulls are ruling every corner of the street, and stocks are either fairly valued or overvalued. The big question is how does one take care of the basic aspect of buying good quality stocks at reasonable valuations. While in this market reasonable valuation might be difficult to find so it would be better to focus on finding quality business knowing full well that one is paying premium in euphoria. Just do a little hard work and ask some questions about the business one is going...

While it was an interim budget, on one count it gave more indications even than a full budget. That count is the path which interest rates may follow. If one goes by the reaction of the debt market and the benchmark G-sec yield, the probability of interest rates coming down has increased very sharply. In an economy like India, where cost of capital matters more than anything else, many sectors will see positive impact. But the strongest correlation is with banks, real estate, construction and in...

Everyone who was thinking that EV space belongs to startups and old companies that dominate the internal combustion engine (ICE) segment would not make it to EV space, probably would have to go and again read the story of the tortoise and rabbit. A large part of the out-performance that stocks like TVS Motors & Tata Motors have seen in the last 2 years can be attributed to their moving early into the EV space. Let’s go back a couple of years. What dominated the headlines was the XYZ s...

The NTPC stock, also a part of the S&P BSE Sensex index, rose from Rs 236 on October 27, 2023, to Rs 324 on January 29, 2024. This translates into an upside of 37% in just three months. The momentum pushed the stock to a fresh record high of Rs 325 on January 29, 2024. It rose over 4% in a week after remaining rangebound last month. The stock has been making higher-top and higher-bottom structures in the last 6 out of 7 months on the monthly charts. Dips, if any, were largely bought into, wh...