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market correction: Whenever the market corrects, it would be deep, sharp and won t give time to investors to exit: Rajat Sharma

“It is absolutely bonkers of a market where Nifty stocks continue to do well. There has to be a very strong reason for this market to fall but I can almost assure you that whenever that correction happens, it would be deep, sharp and it may not give time to many investors to move out of this market. The Indian market is unique that way.”

IndiGo in a do-or-die situation post highest-ever quarterly loss in Q1

IndiGo in a do-or-die situation post highest-ever quarterly loss in Q1
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ITC s cigarette business may light up the stock soon

ITC s cigarette business may light up the stock soon SECTIONS Last Updated: Jul 25, 2021, 09:02 AM IST Share Synopsis We make a lot of jokes (on ITC) and a lot of memes are going around on Twitter but I personally like the stock.​ ET Now If you have a long-term view, ITC is one stock which you should be adding right now, says Rajat Sharma, CEO, Sana Securities, in this chat with ET Now. Edited excerpts: Corporate banks are coming back in action. What s your outlook? It would be very interesting to see ICICI Bank s results. I have been negative on financial services because of moratorium and loan restructuring. Bajaj Finance s NPA in auto loans was at 19% - that is one-fifth of their books. It is not a small number because that segment delivered 9% of their overall revenue, which is huge. Even consumer-lending NPAs more than doubled. But then the stock was rallying positively for some reason.

Stock Market: Stick to fixed income, keep some powder dry now: Rajat Sharma

Where do you see opportunity in new age tech or the digitisation theme? Also where are you sensing opportunity in large cap IT names? One of my favourite stocks right now and for a few years has been Infosys. I was really happy with the results it has posted. I know the stock dipped about 3-4% yesterday because the revenues missed some expectations of the Street, but the operating level margin was 24.2% instead of 25%. These things happen. I have said this before that if one big conglomerate has to come out from India at some point it has to be from IT and within IT, I really like Infosys because it is a very professionally managed company and unlike TCS, which has a legacy business, Infosys is trying a lot of new things. Their digital revenue is about 51% and the EPS has constantly improved from last year’s and has gone up 11% at revenue levels. So why should one look at midcap IT companies when Infosys being so large with so much cash is doing exactly what those companies are

what to buy: I d wait for 30-40% dip before buying HDFC Bank, ICICI Bank or Kotak: Rajat Sharma

How are you viewing FMCG? While growth is not a concern, it is always a toss-up between growth visibility and the valuations that these stocks are trading at? You are right. If we look at the FMCG companies results that they have posted, there has not been any significant damage to the revenue that they have reported or to net profits. In the case of Hindustan Unilever (HUL), the net profit has grown 17-18%. On valuations, yes, a lot of these companies are extremely overvalued and that is not just about these companies. It is true about the markets as a whole because last year for about six to eight months, we were in a complete lockdown and FMCG was one sector which was not really affected by that lockdown because the goods that these companies make were still in demand.

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