Page 109 - Volatility News Today

SEBIs new disclosure norms have led to compulsory unloading of HDFCs heavily owned FII stock, causing fear and a perfect storm for private banks like HDFC, ICICI, and Axis. However, investors should consider buying Axis and HDFC Bank due to their potential for credit growth. Birlasoft, Tata Steel, and Tech Mahindra have shown positive earnings, while Balkrishna Industries is a standout in the tire market. The ongoing legal battle between Zee and Raymond is affecting sentiment, but the underlying...

Rahul Sharma, Director of JM Financial Services, expects a rebound in the Nifty index, possibly starting next week and continuing into the February series. He advises clients to focus on sectors and stocks that have not corrected, such as PSU banks, metals, IT, and pharma. Sharma believes that the risk-reward becomes favorable for a bounce back at around 21,000 on the Nifty index. He also recommends Tata Power and Nocil as top picks. TRIL and Bajaj Auto are also expected to perform well, while T...

The markets are turning volatile as we approach the Budget. Karthikraj Lakshmanan, Investment Analyst at UTI AMC, has a preference for private banks over PSUs and expects them to continue growing faster than the banking industry. FMCG companies face challenges with muted volume growth, but a recovery in rural areas could play a role. In the healthcare space, the domestic market offers good prospects while companies focusing on complex generics in the export market could see growth.

Sunil Subramaniam of Sundaram Mutual Fund expects Indian equities to have a good first half of 2024, but warns of volatility in the second half. He recommends a large cap-oriented equity with allocation to gold and debt for a event-heavy 2024. He believes that consumption, banking, IT, and pharma sectors will perform well. In terms of asset allocation, he suggests a multi-asset allocation fund with a focus on BFSI, consumption, and IT. He also mentions that the outlook for gold remains positive.

The recent sharp decline in stocks like IDFC, IndusInd, and HDFC may be a result of market corrections after continuous highs. This correction is expected, especially for sectors that have seen significant growth. However, the pharma sector has been outperforming after years of underperformance. It is difficult to predict the timing and extent of these corrections, but they are necessary for a balance between valuation and fundamentals.

A look at how market performed on Budget Day as compared to on Interim Budget

This article was first published as part of the Friday Briefing series, which is available exclusively to Investment Week members each week.

​Indian benchmark equity indices ended lower in a trading session on Saturday, dragged by information technology companies and Hindustan Unilever, but gains in lenders helped limit some losses.

A detailed look at our models

The market correction is not confined to HDFC Bank only but is influenced by global markets and outflows across emerging markets. We should let the market stabilize for a few days. Midcap cement companies, Phillips Carbon Black, India-focused IT companies, MapMyIndia, Naukri, are potential buys. The best of the operating profit margins for crude beneficiaries like paints, tyres, OMCs may be behind them. A mini crude correction may present buying opportunities.