'India is still a cash economy.' 'For a common household, almost everything from grocery to maid services is paid in cash.' 'The demonetised notes account for 85 per cent of the currency in circulation.' 'Until fresh notes flow back into the economy, day-to-day transactions ordinarily done in cash will be impacted.'
Fresh order wins for capital goods and industrial companies may have seen a major slump due to Lok Sabha polls in the first quarter of the current financial year (Q1FY25). At the same time, revenue and profit growth trajectory is expected to have stayed the course, according to brokerage firms. Elara Capital, Motilal Oswal, and InCred Equities expect this sector universe to report a 12- 21 per cent growth in revenue, 21 -36 per cent growth in Ebitda and 24-38 per cent growth in profit on a year-on-year (Y-oY) basis.
Earnings growth trajectory for India's capital goods firms is likely to stay buoyant for the December 2023-ended quarter (Q3 FY24), said analysts. Guidance on margins, ordering activity in an election year and export-related demand would be key monitorables. Brokerages - Motilal Oswal, Nuvama, Kotak Institutional Equities and Prabhudas Lilladher - estimated revenue growth for their capital goods universe to be 11-16 per cent year-on-year (Y-o-Y).
Fast-moving consumer goods (FMCG) companies are expected to witness pressure on volumes in the October-December quarter. However, price hikes will help push up revenues, said brokerages.For India's largest engineering firm, Larsen and Toubro (L&T), the analysts expect a 20 per cent growth in consolidated revenue, and an 8.1 per cent core business Ebitda margin, up 40 bps from a year ago.
Raamdeo Agrawal of Motilal Oswal Securities believes that the scope for surprises in the market in 2007 is limited; he expects 17-18% returns. Moreover, he says that there is no major concern at Sensex valuation of 17-18x.
Ask rediffGURU and PF, MF and insurance expert Purshotam Lal your mutual fund, insurance and personal finance-related questions.
Capital goods stocks rallied nearly 16 per cent since January on purchases by foreign institutional investors and in anticipation of a change of government at the Centre.
While the Budget might have been a sentiment booster for the sector, firms with market dominance emerge as favourites.
10 stocks from the Nifty 200 index that offer good growth potential and scope to deliver decent returns from current levels, based on brokerage estimates.
Brokerages expect a further slowdown in Indian firms' revenue and earnings growth in Q4FY25, following low single-digit growth in the preceding three quarters, as factors like weak consumer demand and credit growth linger on.
West Asia conflict triggers sharp sell-off in Indian markets, with realty, banking and auto stocks leading losses amid energy shock fears.
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The stock of automotive (auto) components major Bharat Forge has risen 14.6 per cent over the past month. Despite ongoing demand challenges, strong operating performance in the July-September quarter (Q3) of 2025-26 (FY26), a diversified revenue base, and expectations of a gradual recovery have lifted sentiment.
'They are a poor fit for anyone with near-term goals, low volatility tolerance, or a need for steady income or liquidity.' 'First-time investors should typically avoid them.'
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
'Such stocks may be useful for aggressive portfolios, but should not be part of the core holdings.'
The AV Birla group flagship Grasim Industries has been an outperformer on the bourses. The company's stock price is up 56.5 per cent in the last
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
Global fund managers witnessed one of their largest-ever declines in assets under custody (AUC) during the ongoing correction in the Indian markets, as stocks came under pressure from foreign outflows and the weakening rupee.
10 largecaps stocks which stand to gain from the Budget.
After four years of high double-digit growth in profits, corporate earnings of Indian companies hit a speed bump in the April-June quarter of 2024 (Q1FY25), leading to the risk of a downward revision in India Inc profit estimates for FY25 and volatility in the equity market. Earnings growth slowed despite companies in most non-financial sectors reporting higher operating margins from lower commodity prices and a decline in interest costs.
Analysts expect Nifty to rise up by to 6 per cent in six months, with intermittent corrections likely due to global factors.
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Last fortnight, 206 companies from the BSE-500 hit 52-week lows as investors sold heavily in counters with dimmed prospects.
Worries remain on earnings-valuations mismatch, global issues; resolution of the MAT row could be biggest positive trigger
Shares of Tata Consultancy Services (TCS), the country's largest IT services provider, continue to remain under pressure, hitting a new eight-month low of Rs 3,624.90 intraday on Tuesday before closing at Rs 3,631, down 1.19 per cent. In the past two trading sessions, the stock price has declined 4 per cent on fears of a slowing US economy.
'Investors with foreign currency-denominated goals, such as foreign education or foreign travel, should go for US equity funds.'
'We expect market consolidation and recommend buying during market dips.'
Analysts, however, said the timing of the infusion was good.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Despite the uncertainties created by rising bond yields and oil prices, fund managers have been proactively deploying fresh flows into the equity market. The cash available with equity fund managers, which has remained lower at around 5 per cent in the past few months, hit a 16-month low of 4.8 per cent in September, shows a Motilal Oswal Financial Services report. Cash holdings in equity schemes had topped 6 per cent in February amid subdued equity market sentiment.
There is a lot of optimism as regards the defence, railway and manufacturing sectors.
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Q1 results indicate more pain ahead, as slowdown has spread to more sectors, pricing power has come down and rising interest cost is eating into profits.
However, experts caution that investors should not expect the big returns they got from the sector between March and September 2020.
Banking and telecom will see the highest impact of this transition.
Equity investors became poorer by over Rs 8 lakh crore in five days of market plunge. The BSE benchmark has lost 2,062.99 points or 4 per cent in five trading sessions. On Thursday, the 30-share BSE benchmark tanked 585.10 points or 1.17 per cent to close at 49,216.52. Following the bearish trend, the market capitalisation of BSE-listed companies declined by Rs 804,216.71 crore to Rs 2,01,22,436.75 crore in five days.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
The stocks are largely from sectors such as chemicals, finance and cement, which struggled earlier but the worse seems to be behind them.
Berger Paints, the country's second-largest decorative paint maker, continued to outperform its peers and gain market share in the 2023-24 (FY24) October-December quarter (third quarter, or Q3). The company posted a consolidated revenue growth of 7 per cent compared to the year-ago quarter, surpassing Asian Paints (5.4 per cent) and Kansai Nerolac Paints (5.7 per cent).
The elections held in April-May 2019 will be an important determinant of future growth and investment.
The combined net sales of 42 listed construction and capital goods companies that have declared their third-quarter results so far were down 2.3 per cent year-on-year in Q3FY21 while core operating profit was up just 4.9 per cent YoY during the quarter.
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