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Both, in terms of bottomline and stock price performance, pharma stocks had been under pressure for a long time. Partly this under performance was due to over valuation at which these companies were trading since 2015. Also stocks came in the overowned category for both the institutional and retail investors portfolio. Last but not the least, close to 2014, USFDA inspections became both more in numbers and stricter, many companies which assumed that they can take care of anything, got a rude sh...

After refusing to leave the party when nifty and senex corrected for the last two months, small cap stocks witnessed correction in the last three weeks. One trend which has appeared is that on the day when the small index is down, the breadth of the whole segment is extremely weak. It is an indication that investors should put more checks and balances while navigating the small cap space. Also beware of rude shocks which this segment of the market may witness given the fact there are more headwi...

After a correction, Nifty is once making an attempt to move into a range bound mode. During this period, one should keep an eye on market breadth as it would give more reliable indication of market conditions. During this period analysts are bullish on certain large cap stocks. Stocks from different sectors are making to the list, this week, stocks from Oil refining and marketing, private banks, aviation, insurance, auto ancillary and fertilizer space. ET screener powered by Refinitiv’s St...

After 6 months of relentless rally, mid-cap stocks witnessed some correction in the last three to four weeks. Will this correction last longer would depend on a couple of things. First earnings in this space and second foreign institutional investor ( FII) flows over the next two months and third is state elections results. At this point of time analysts are bullish on select midcap stocks, ones which have seen their score improving. Stocks from sugar, infrastructure and engineering are on the l...

Operating leverage defines the relationship between sales revenue and costs (fixed and variable). A firm with a high operating leverage can generate bigger operating profits through incremental sales. The degree of operating leverage (DOL) is a statistic that is employed to determine the magnitude of operating leverage. ET Wealth tried to identify companies whose DOL was higher than their respective industry’s median operating leverage in each of the last two financial years. As the domest...

After the changes in tax law, all insurance stocks were hit badly. While all three belong to the insurance sector, there is a world of difference between macro and micro factors which impact the bottomline of the life insurance, non life insurance and a health insurance player. Painting them with the same brush is not good for a portfolio. The list is based on upside estimated by the analysts, with the highest potential stock coming on the top of the list.

Even before global equity markets were rocked by developments in Israel, they have been in volatile mode with bearish bias. With bond yield inching upward in the US, fears that tight monetary policy continuing for more than expected time have once again come hitting the emerging markets. While the initial reaction of the street has been on expected lines, what needs to be watched is whether there is any kind of escalation. Also more importantly, it is time to take a step back, think and then mak...

Capital goods and engineering is a very broad term. From a company making small machinery parts to one making a large turbine for power generation all tend to get clubbed together. But they are all different, both in their ability to perform complex tasks and the industry they are catering. While a power turbine maker had tough times given the fact hardly any new power plant came up in the last ten years. Some others like the ones which were dealing with railways, had a good time given the expan...

Monday’s trading session will start with the global market reacting to the development which took place in the middle east over the weekend. Both equity and commodities, especially oil prices will react. Given that valuations are not very cheap and we are close to the second quarter earning season getting started, it would be better that one should wait for some time before taking any decision, both to buy or sell. Also over the next couple of days if one is buying it would be better to st...

Friday’s up move in nifty might make some think that correction is over, but give the fact that valuations are high and global markets are still grappling with possibility of hawkish stance of US fed, in such conditions, it would be better to add the words like portfolio rejig, caution, fundamentals and valuations to one’s thought process while buying stocks. Refinitiv’s Stock Report Plus which lists stocks with high upside potential over the next 12 months, having an average r...