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While they all come under the broad umbrella of financial services, they are so diverse that each segment is an industry in itself which is governed by an operating matrix that 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 company ( AMC) the net margin would be more than 30 percent. The only common thing that binds the financial service sector is the GDP growth rate as the growth in all segments has a certain well-defined relationship with GDP growth.

Post 2015 and then again in 2018, RBI did a strong rejig in various banking policies, right from capital adequacy to the operational matrix were tightened. The first set of banks which street took note of were larger private sector banks than PSU banks. There is another set of banks, which dont have the distribution reach which large private banks have, but when it comes to ownership they are not the same as the PSU banks. They have very different hybrid kinds of ownership, a sort of quasi private sector banks. These are private sector banks of mid-sized banks which operate in particular regio...

If one looks at the history of the stock market, the rallies which are led by the transportation and auto sector are more durable rallies. Especially the ones which are led by large commercial vehicles. The reason, sales of LCV and certain other auto segments is an indication of the economic situation on the ground. Demand for large commercial vehicles would only increase when there is higher economic growth as more goods get moved from one place to another when the economy is doing well. But as the stocks have done well in the recent past, it is time to be selective at least in the near term....

After what can be described as a short phase of correction, mid-caps are once again on a roll. Both in terms of market breadth and absolute gain, midcap are leading the rally. The valuations which were high have moved even higher, so while there cannot be an argument against the liquidity, there are some safeguard which become important before one take exposure to the stocks and especially mid-caps as the correction in this space can be very brutal. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks ...

There has been a catch up by the large cap in the last three weeks, but given the fact that valuation of mid-caps have also increased the valuation differential which is key behind the possible mean reversion trade is still valid . Given the fact that the differential between, mid and large cap stocks has increased very sharply in the last one year, if the market remains under the control of bulls there is a probability that over the next few quarters markets may see a mean reversion. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potenti...