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Between 2005 and 2008 a number of new players entered into the power sector, right from established industrial houses, to new companies without any experience in the power sector. Anything to do with power got valuations which were unheard of in that sector. Very soon, there was a u-turn on the street, with power stocks becoming the worst performer. The reason, a large number of these companies got stuck with legal cases, due to coal issues and the captive mine case hit them very badly. After a ...

Despite the fact in the last one year, only negative things have been said about IT companies, look at their stocks performance. Except one large IT stock which had been a perennial under performer, most of the other IT stocks are not very far from the highs they had touched almost two years back. Infact relative performance of some IT is far better than many of the stocks and sectors which have been headlines. While it might be contrarian buy, there is high probability that IT stocks perform be...

After a phase of correction in which we saw sharp decline in the stocks prices, the small cap stocks segment has been able once again inch upward. Lower oil prices, softer inflation numbers are probably triggering this part of the rally. However, small caps are always the riskiest place to take espouse when it comes to equity. But it is also a space where if one is able to find the right stock at the right time, gains are much higher. So a space with the highest risk and highest reward. While ri...

First thing which happened after the monsoon got over was that cement companies were quick to raise the prices. While they do raise the prices, it is not done in such a short time after the lean season, also sometimes the noises which are heard from user industry like real estate and infrastructure companies when prices are raised were not heard this time. This is an indication of strong demand which in turn is an indicator of better growth. We take a look at what analysts are saying across ceme...

In September and in October, there was one trading session each in which Midcaps witnessed very sharp correction. It appeared as we are close to repeating the last quarter of calendar year 2021, when in the same period, this segment of the market witnessed change in direction. While it cannot still be ruled out, the way things are panning out, the probability of that happening appears to be lower at least at this point of time. Stocks from sectors like small finance banks, oil refinery and housi...

In the last few weeks, the range in which the nifty had been moving has become broader as the volatility has increased both due to international and domestic reasons. It is very likely that that market may stay in this range and mode, till the time a new sector takes a lead to push the nifty higher. During this period, analysts are bullish on select large caps. Stocks from different sectors are making to the list, this week, stocks from private banks, insurance, auto ancillary and fertilizer spa...

While they come under the broad umbrella word of “Chemical sector” the fact is that each specialty chemical company is literally an industry itself with its own operating matrix of supply chain and demand. There are some companies where the trouble in China means big bonus, while for others it might mean supply chain issues which means that their production in India’ get impacted. At this point there are many parts of the chemical industry which are facing headwinds due to over...

The NBFC crisis of 2018 has just completed its 5 years. If one looks at the root cause of the NBFC crisis, beside the lending issues by Yes Bank, it was housing finance companies which were at the centre of the crisis. If one looks globally also, either directly or indirectly, they have been at the root of a financial crisis or a scam. One of the reasons why this sector carries such risk is that the underlying asset, which is real estate itself, is both cyclical and non-transparent. So, now when...

After the last few weeks of correction, the broader market indices like nifty and sensex have been showing signs that bears will have to wait before they can make any serious attempt to control the street. Even the Samvat 2080 started with a bullish gap up opening in Sundays special trading session. though it needs to be seen whether there is follow up in coming days. Being a truncated week of trading, volumes are likely to be low. So be cautious rather than being overtly bullish. These selected...

It makes sense to pay more for a stock whose earnings grow at a faster rate. Now, how much more should be paid would be determined by dividing a company’s PE multiple with its growth ratio. But growth is a function of many variables and that is the challenge which one needs to navigate. But the effort saves trouble which many may face later on. Especially in sectors like banking and financial services which have large numbers of stocks which on face of it appear cheap but are actually not....