All stories by Puneet Wadhwa
Can Nifty 50 Hit 21,000 By Diwali?Rediff.com1 days ago
'Some risks to this market rally include inflation, erratic weather conditions, rising crude prices, slowing global growth and the resultant impact on domestic exports, escalation in geopolitical tensions.'
Mid-, smallcap stocks overheated; rally an irrational exuberance: AnalystsRediff.com2 days ago
The recent rally in small and midcap (SMID) stocks is not backed by fundamentals and is a case of irrational exuberance, analysts at Kotak Institutional Equities said in a recent report. The fundamentals of most of these companies have, in fact, worsened over the last few months, they noted. Yet, some analysts expect the bull run in these stocks to continue amid intermittent corrections.
Markets May Tank 40% If...Rediff.com6 days ago
The outcome of the general elections, the Morgan Stanley note says, has enough firepower to sway the markets on either side.
PSUs in fast lane on capex push, top 10 shares nearly doubleRediff.com7 days ago
Public-sector enterprise stocks have seen a good run thus far in 2023-24 (FY24), with the S&P BSE PSU Index surging by over 26 per cent during the period, compared to an 11 per cent increase in the benchmark S&P BSE Sensex.
'Markets could remain firm with occasional corrections'Rediff.com1 Sep 2023
'In case the El Nino pattern plays out negatively and/or the political situation becomes messy, we may see markets correcting and waiting for the situation to become clear by early/mid-2024.'
Analysts turn cautious on Asian markets; India remains an outlierRediff.com30 Aug 2023
The 55 basis point (bps) spike in the US 10-year bond yield, triggered by a combination of FOMC's hawkish commentary and BOJ's relaxation of the yield control curve (YCC) has made analysts cautious on Asian equities and expect them to trade sideways in the short-to-medium term.
Goldilocks position for Indian equities is getting questioned: JefferiesRediff.com17 Aug 2023
Rising crude oil prices, traction in China equities and inflation concerns back home are casting a shadow on the Indian equity markets in the short term, believe analysts at Jefferies. They said this could see the markets remaining range-bound in the near term before the next leg up.
New era of Indian equity outperformance is dawning: Morgan StanleyRediff.com11 Aug 2023
A new era of Indian equity market outperformance compared to China "appears to be dawning", according to Morgan Stanley. The firm has upgraded India to overweight in its Asia Pacific-excluding Japan (APxJ) list, making it their most preferred market not only in the region but also in the global emerging market (GEM) pack. India now holds the top position in this category, with an overweight of 75 basis points, a significant increase from nil previously.
What does Fitch downgrade of US credit rating to AA+ mean for the markets?Rediff.com10 Aug 2023
Rating agency Fitch on Tuesday downgraded the US government's top credit rating to AA+ from AAA, citing fiscal deterioration over the next three years and repeated debt ceiling negotiations. The development caused a flutter across equity markets, with most leading frontline global equity indices trading weak. Back home, the S&P BSE Sensex and the Nifty50 lost over 1 per cent each in intra-day deals to hit a low of 65,751.53 and 19,517.55 levels, respectively.
Mid, smallcaps reach for the sky despite analysts sounding cautionRediff.com9 Aug 2023
Stocks of small- and mid-cap companies continued to gain ground in July, notwithstanding analysts sounding caution on these two market segments given the sharp run thus far in calendar year 2023 (CY23). Sanjeev Prasad, co-head of Kotak Institutional Equities, in a note co-authored with Anindya Bhowmik and Sunita Baldawa in June-end, had cautioned against the sharp run in small- and mid-caps. "We do not see any particular reason for the excitement in small- and mid-cap stocks.
UBS 'double upgrades' Gail India to buy; sees 25% upside in the stockRediff.com8 Aug 2023
UBS has 'double upgraded' Gail (India) to 'buy' from its earlier 'sell' recommendation with a price target of Rs 150 (Rs 80 earlier). The research and brokerage house believes that the markets are yet to fully price in the upside to realised tariffs (from tariff integration), as well as the scope of India's improving gas demand and GAIL's pipeline expansion. For Gail, UBS expects 8 per cent compounded volume growth (CAGR) over FY23-26.
ITC hotel biz demerger allays capital allocation concerns, say analystsRediff.com2 Aug 2023
ITC's move to demerge the hotel business into a new entity, ITC Hotels Ltd, is a step in the right direction and will allay investor's concerns on the company's capital allocation strategy in the medium-to-long term, said analysts at Morgan Stanley in a note. According to the company, the board of directors has approved in principle the demerger of the hotels business, wherein ITC will hold a 40 per cent stake in the new entity, and the remaining 60 per cent will be held directly by shareholders. The scheme of arrangement shall be placed for approval of the Board at its next meeting to be convened on 14th August 2023.
Hotel stocks have more room for an upside; buy selectively: AnalystsRediff.com2 Aug 2023
The move to demerge the hotel business into a separate entity by ITC has brought back focus on hotel stocks, which have already seen a good run thus far in fiscal 2023-24 (FY24). Analysts believe there could be more gains in store over the next one year for the stocks in this sector, but suggest investors put in money on a correction only from a long-term perspective. Hotel stocks, according to A K Prabhakar, head of research at IDBI Capital, have seen a good run as travel picked up post Covid in India. Not only have the room rents increased, the occupancy, too, has surged.
'This isn't an irrational exuberance bubble'Rediff.com1 Aug 2023
'Earnings will be the catalyst for markets to march higher from here on out.'
'Investors must look at a mix of asset classes before investing'Rediff.com27 Jul 2023
'We are in a sweet spot.' 'Equity, on a standalone basis, will continue to remain the asset class to stay invested in.'
Interest rates: Higher inflation, oil price to keep RBI on holdRediff.com21 Jul 2023
The rise in consumer price index (CPI) inflation could see the Reserve Bank of India (RBI) in an extended pause mode as regards interest rates, and in turn, keep the market rally in check, believe analysts. Signs of inflation cooling off in the US, however, is likely to provide some cushion as the expectations of a change in stance by the US Fed as regards interest rates is likely to aid sentiment. Back home, CPI inflation surged for the first time in five months to 4.81 per cent in June 2023, and was higher than the street's expectations of 4.58 per cent.
Why analysts remain selective on cement stocksRediff.com20 Jul 2023
Analysts remain selective on cement stocks amid the likely government's capex push ahead of the scheduled general elections in May 2024. While UBS has initiated coverage on the Indian cement sector with an anti-consensus negative view and suggests investors sell select cement stocks on a rally, those at Nomura remain selectively bullish on the sector and prefer companies with large brownfield optionality and multi-region presence. In the near-term, UBS expects strong earnings of cement companies in the next two quarters to be driven by robust demand and margin tailwinds, but suggests any sharp uptick in stock prices could offer a good opportunity for booking profits in the related counters.
What Indians Order Most On ZomatoRediff.com18 Jul 2023
'North Indian cuisine dominates on Zomato.'
Wild ride for auto stocks so far in FY24 as they burn rubberRediff.com17 Jul 2023
Automotive (auto) and auto ancillary stocks have been in the fast lane thus far in 2023-24 (FY24), with the National Stock Exchange Nifty Auto Index surging nearly 27 per cent, outperforming the Nifty50, which has gained roughly 11 per cent during this period. The top-gear performance of auto stocks at the bourses, according to A K Prabhakar, head of research at IDBI Capital, has been triggered by the premiumisation of products across vehicle manufacturers, which has seen vehicle sales remaining relatively stable. "It is not about higher sales figures now, but about premiumisation.
'Investors should stay invested'Rediff.com14 Jul 2023
'Markets are not expensive; they are fairly priced.'