Page 23 - Includes Docubay News Today

One of the biggest challenges which manufacturing companies and too large ones face is the right allocation of capital. The reason, they go through various economic and business cycles where they face both the problem of plenty and scarcity of capital at different points of time. When a metal company starts making money, it mints money. Post that what it does --buy more mines, expand capacity or retire debt -- will determine its future. When looking at manufacturing companies, look carefully ...

There are many facts about the logistics industry which might surprise many. Just to mention a few, a metal major has such a large fleet of owned trucks that the unit itself can be listed as a separate company and probably would figure in top 5 logistic companies. Second, in logistics, the major share is with the unorganized sector. Third right from a company which restructured its operations by selling some parts of business and then taking over another company to get into micro delivery space....

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 the choice of the stock which one buys. Now this risk is higher at a time when valuations are high and it appears that nothing can go wrong wit...

After touching a new high, nifty and sensex moved into correction mode. If one looks at the way markets have moved intraday in this phase of correction, it appears that a basket selling pushes the index down then there is one sector which pushes it back up. These are indications that in the coming two weeks, when there is a high probability of volumes being low in the markets, we may see slightly higher volatility as stock prices will react more to even slightly a bit of selling or buying. In su...

Metal sector has been witnessing a mixed news flow, the much anticipated recovery in China is not panning out but there is no immediate pressure on prices. In the case of companies, some of them have utilized the amount they made in the recent boom to reduce the debt. Some of the stocks have been outperforming by not declining in a corrective phase of markets. Stock Reports Plus, powered by Refinitiv, is a comprehensive research report that evaluates five key components of 4,000+ listed stocks -...

While it has been slower as compared to other sectors, even the fertilizer sector has been witnessing policy changes which have intended to plug loopholes and increase the operational efficiency of the companies. Given the policy measures, it would be worth bringing them to watchlist because if a re-rating takes place then we could see a sharp move. But one thing which one needs to remember is that in such sectors some time invested capital can underperform for some time.

In Wednesday’s trading session, as the nifty made a U turn, one set of stocks which were able to hold its head above water for some time were IT stocks. Now there are two ways to look at it, first they have been underperforming for almost two years, so this might be a catch up trade. Second, given the fact that other parts of the markets are so expensive that given the lower than valuations and quality of balance sheet which most software companies have, they are attractive buy from a pers...

There are many sectors which are dependent on the policy push by the government, but defence as a sector which has come into focus in the last three years is probably more impacted by policy direction as the government is the biggest spender on defence and it this government focus on indigestion that has changed the fortune of the domestic defence manufacturer and contractor. Probably that is the reason why after state elections as the street felt that there is high probability of continuity in...

While it is clear that globally the “risk on trade” is catching up with emerging markets doing better than what they have been doing at the start of the year. But even in strong bullish markets, there are periods of corrections in which individual stocks may see some correction. Just keep an eye on liquidity as reflected by DII and FII numbers and the market breadth in the next few sessions as that will determine what happens to mid-cap stocks in the medium term. ET screener powered ...

But if we broaden the analysis, second rung private sector banks did extremely well and even beating them was the entire public sector banking pack.