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In a market in which stocks of companies undergoing bankruptcy are quoting at half billion market cap, finding stocks which have value is probably not something which is an easy thing. It is time when the choice has to be made between fairly priced or overpriced. Given the sentiments, investors are more prone to buying stock first and then looking at what is the business of the company, that too is done by very few. It is exactly the time and sentiment when it becomes extremely important to go b...

In the last three years, many sectors and companies which have been in the dumps for years have made a comeback. There are two kinds of comebacks, one is comeback on the dalal street. Second is a comeback in the real business. It is the second one which is more important as that is what finally matters to even the street. If one looks at the history of the liquor industry it has been dominated by two large names, but over the last few years, many smaller companies have made a comeback in a real...

Just because of the stock, HDFC bank came under pressure, a narrative got built, that the whole banking and financial services sector is facing headwinds. But the fact is financial service is a very broad term, it would be wrong to look at them with the same lens. Each segment is an industry in itself which is governed by an operating matrix which is very different from another. For example, a Housing finance company can be happy with 10 percent net margins, but for an average asset management c...

The whole logistics sector has seen a major shake-up in the last few years, right from tech aggregators who came into the scene with a promise to disrupt, challenges that Covid brought on the table to a phase where oil prices become a pain point for margins. After all the challenges, the sector has emerged stronger as some companies restructured their operations to stay profitable. There are many facts about the logistics industry which might surprise many. Just to mention a few, a metal major h...

Unlike the US and some other western countries, where a separate transportation index is watched very closely, in India we dont have a very popular transportation index. The reason why transportation index numbers are extremely important is because there is enough historical evidence to show that auto industry numbers lead indicators of what is happening in the economy. That is why if one looks at the history of the stock market, the rallies which are led by the transportation and auto sector ar...

One day up, another day down and there is no dearth of explanation for each move of the market. After a strong run up, stock prices are bound to see some correction and the markets are likely to be volatile. First phase of volatility is always led by large caps as they have high institutional holdings. But over the long term, they tend to outperform and the drawdown is lower as compared to mid and small caps. So, at times large caps might optically appear to be underperforming and that may be an...

The way mid-cap stocks have performed in the last few days, it appears that a rotational correction is taking place. The only solace is that the street is rewarding the stock if there is any positive development which indicates that there is still fresh money which is on the sideline which moves into those stocks. But on the other hand, on a day when there is any correction, the cuts are sharper and market breadth turns extremely negative. For investors who have high exposure to mid-cap space, t...

There are phases in the market when banking and IT stocks tend to move in opposite directions. But this time, it is the banking space which itself is witnessing contra moves . The private banking space is under pressure and PSU banks are doing well. Now this is again a risker trade but for traders, it is time to keep a watch on private banks as they might see a bounce back when FPI’s turn net buyers. Also this would mean that bank nifty which has underperformed may make a strong comeback. ...

Lower oil prices, softer inflation, better than expected GDP numbers, clear indication of interest rates coming down, policy continuity and finally strong price action by the bulls. There are many reasons for the current state of the smallcap segment. Whatever the conditions or tailwinds, one basic principle should never be forgotten. When it comes to equity as an asset class, smallcaps are always the riskiest place to take exposure so always be cautious. On the other hand, if one can find right...

It might surprise some, but years before a new car or motorcycle is launched, automakers go in huddle with their backend supplier to finalize the supply chain management of components which will go in that new car or the bike. Until the component supply chain is not planned and perfected, things are not taken forward. Such is the importance of the backend component supplier which are more commonly known as auto ancillary units. Now there is a major transition taking place in the Automobile secto...