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While it might be too early to call or to some it might appear to be wish of which bears on the street would have, but the way the market has panned out at the start of 2024, there is probability of a selective correction taking place. So, it is stocks where there are some improvements in the business operating matrix that tend to weather the storm better. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fund...

For a large majority of investors, when the word “ large cap” is used , it is stocks like HDFC bank, ICICI and other big names come to mind. The fact is that these stocks have moved into the mega cap category. There is another set of stocks which have now entered into large cap territory when it comes to market capitalisation but in terms of certain aspects of business, some of these are from sectors which are getting discovered or getting re-rated as if they are mid-cap stocks. Hav...

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 consoli...

According to a recent report by BookMyShow, the footfall in India’s music festivals went up by nearly 82% in 2023, year-on-year, to reach 13.5 million. Most of them were from metros such as Delhi-NCR, Mumbai and Hyderabad, but the growth was driven by fans from Tier-II cities such as Lucknow and Bhubaneswar. Footfalls from these places increased by nearly 225%. The music festival market in India is estimated to be worth `1,000 crore, as per industry sources.

If one looks at reasons for the out-performance of stocks like TVS motors and Tata motors, a large part of it can be attributed to their moving early into EV space. Now let’s go back a couple of years. What dominated the headlines was the XYZ startup focused on EV space has become a unicorn because it has raised US $ 20 million at such and such valuations. Here we need to make a distinction between the total amount raised which will go into operation of the company and the valuations. The ...

Year 2024, started with contrarian buy call by note by a large foreign brokerage and the impact on the IT stocks is visible as they stand out in green territory. One of the basic principles of figuring out whether the stock prices have bottomed out or have topped out is how they react to the negative and positive news. It is after a long period of time that IT stocks have reacted to positive news. When news is bad and most are skeptical it is time to look at businesses which have a track record ...

After a minor corrective phase, while the mid and small caps are once again in party mode, large caps have been lagging in a relative manner. But investing in not about a quarter or week, it is much more than them. If one looks at the long term, large caps are able to outperform and create wealth in a more sustainable manner. So probably a short phase of underperformance due to the fact that everyone is chasing short term performance due to recency bias might be an opportunity to look at some st...

Even when nifty and Sensex had been correcting, midcap stocks have been continuing with their party. Today when nifty is trading in green, the gain in midcap indices are higher as they continue to outperform. This is happening as the “risk on trade” continues with all the positive news across the globe and is clearly reflected in the overall markets breadth which is extremely positive. Over the next few weeks, if there is a resumption of positive FII flow than we might see these sto...

The year 2024, started with a correction in nifty, but one set of stocks which were able to outperform were pharma stocks. While it might appear to be a sudden up move, if one looks at what has happened in the pharma sector in the last eight years, there is a good chance that right from valuation readjustments to changing business model might play a role bringing the large pharma companies back into limelight. Infact some of these stocks have quietly inched upward in the last few months. It migh...

As an investor there are certain things which are under your control when making a decision to buy stocks. One of them is that before buying the stock, do some basic home work like what is the business of the company and how that company is placed in the industry and what are some of its basic key ratios. This work will not only save not only money but also lots of anxiety when there is a correction in markets. The problem with not even looking at basics is that when the market corrects as it ha...