BULL MARKET CORRECTION
Buy Zomato, sell Jubilant Foodworks & don't buy other QSR stocks: Will this theme continue even longer after Swiggy gets listed?
For 2023, Biryani was the most ordered food online. Will 2024 be different when numbers come out. Not probably, With nearly 85 variants and over 6.2 million orders, 'Dum Biryani 'has emerged as the undisputed champion. Biryani rice came in second with 3.5 million orders, while 'Hyderabadi Biryani' received over 2.8 million orders. For some investors these might appear to be irrelevant at the first instance, but probably that is the reason why stocks like Jubilant foodworks and other QSR stocks have been underperforming for quite some time. Will this change, or growth of zomato and swiggy, which makes sure that more Briyani, Chole Bhature and Tikki are ordered, brings a cap to growth which pizza and burger sellers can have at least in terms of giving return on the street.
Stay invested! There's more value in largecaps but growth story is panning out in mid & smallcaps: Rajesh Bhatia
Rajesh Bhatia, CIO of ITI MF, discussed the current market uptrend, emphasizing the strength of India's structural bull market. He highlighted significant growth in midcap and smallcap sectors, particularly in defence, electronic manufacturing, and capital goods. Bhatia advised staying invested despite frothy valuations due to robust macro conditions and potential for future capital expenditure.
Fund Manager Talk | No value opportunities in current market environment: Kenneth Andrade
“What seems to be deviating right now is the trajectory of valuations and the growth of the economy. Valuations in a lot of businesses are running ahead of time – the expectations are building up significantly. In situations like this, what is not factored into this scenario is an external event which could derail executions. Investors need to balance this view before taking any view of incremental investments.”
F&O Talk | Nifty can scale a new peak, go for bull spread: Sudeep Shah of SBI Securities
“Markets have demonstrated remarkable resilience, with each dip being met with buying interest. Geopolitical tensions and concerns about the Yen carry trade have eased somewhat, contributing to a global market rebound. The overall setup is bullish with Nifty forming a Higher-top Higher-bottom pattern for the past 3 weeks. If Nifty surpasses 24,940, it could potentially advance towards 25,150-25,200 levels in the short term.”
15 stocks which may gain in forthcoming festive season as consumers loosen their purse strings
In another two weeks, Ganesh Chaturthi will kick off the official festive season 2024. A season in which some companies look forward to for one simple reason, they tend to see the highest sales in this period as consumers loosen their purse strings. Now why look at these stocks ahead of the festive season. Look at what happened to stocks of white good markets like Voltas. The first indication of strong summer had just come in March, stock started gaining and in less than 6 months more than 50% gain from its low. Given the fact that there is too much liquidity which is prevailing in markets, a small hint that the performance of the company is going to be good, stock tends to gain very sharply. So, in bullish markets, before you see in headlines “ festive season sales”, it is time to look at them. If you want to see what difference the festive season makes, just have a look at how different two quarters, a festive quarter and non festive quarter sales.
Expect more correction in defense and shipyards stocks: Sandip Sabharwal
Longer term trends, I would not be so concerned because many investments in automation or green energy, the entire power sector, even the industrial capex and the need for water treatment, etc. So, there are so many opportunities that is there that longer term prospects are still good.
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Waiting for a technical correction with a stock list and cash in hand, not chasing value: Dipan Mehta
Dipan Mehta, Director at Elixir Equities, discussed market valuations and the lack of corrections since COVID. He advised caution in banking and auto sectors due to stagnation and potential cyclical downturns. Mehta is optimistic about long-term prospects, particularly in industries like smart meters, but is currently holding cash for strategic investments during corrections.
What is keeping the bulls running in the market? Chakri Lokapriya answers
Chakri Lokapriya from RSB LLP discussed the promising outlook for Indian IT firms, citing favorable US market conditions. He highlighted TCS, HCL Technologies, and Infosys, and mentioned a shift from traditional sectors to new-age companies like Ola and Paytm. He also touched on the impact of the US Fed's potential actions on Indian markets.
Don’t be a blind bull in this market; 2 FMCG stocks to buy now: Aditya Arora
Aditya Arora noted that the Nifty Mid Cap space had seen a muted recovery, regaining only about 50% of its fall. He advised a cautious, stock-specific approach due to overvaluation and potential corrections. Arora also discussed the weakness in the auto sector and suggested Varun Beverages and CAMS as promising stocks.
Mark Mobius will invest 50:50 in US and India for next 6 months, 1 year and beyond 3 years. Here’s why
Mark Mobius emphasized the global influence on the US markets, with significant earnings from emerging countries like India. He recommended a diversified portfolio focusing on US and Indian equities for the short and long term and highlighted the potential short-term gains from fixed income investments. Mobius cautioned against certain Latin American and African markets.
So long as market does not create a new high, there's a risk of this correction deepening: Dipan Mehta
Dipan Mehta, Director at Elixir Equities, advised investors to maintain a cautious stance amid potential market corrections. He noted that significant investment opportunities arise during downtrends. Mehta remains skeptical about Jio Financial Services and suggested focusing on established NBFC players. He also expressed caution regarding the automobile sector despite upcoming new model launches.
Rohit Srivastava on 3 sectors to bet on for near term
In India also, if I look at the breadth indicator, advance decline line, that has also reached oversold and it has gotten there not just because of the last four days. In India, we have actually been seeing stocks weaken against the market for a couple of weeks.
Fund Manager Talk | Market overvalued, expect normalisation in due course: Shreyash Devalkar, Axis Mutual Fund
I believe the focus on policy continuity has been the key driver of gains. Likewise, for the capital gains, I do believe that markets were surprised but have taken these in their stead.
India is in a bull market; stay invested: Rajesh Bhatia
But as far as the Indian markets are concerned, it is an extremely strong market, minus the fact that the US could be going into a slowdown and it is difficult to kind of gauge the extent of the slowdown as yet but it is certainly going into a slowdown and which is going to trigger interest rate cuts from the Federal Reserve. So, minus that concern which will probably impact global-facing sectors, India is in a bull market, stay invested in India.
India looks like a better safe haven in this global market rout: Charu Chanana
So, certainly there is going to be a reality check. There is a lot more important US data coming out, particularly today, the ISM services number and then, yes, going on in the week as well which will give us a reality check on really how bad is the US economy faring and whether we should really be expecting the Federal Reserve to cut rates by 50 basis points in just one meeting in September or over 100 basis points through to the end of the year.
Bull market correction: Accelerated Fed rate cuts from Sept may see unwinding in EMs, carry trades, says Pankaj Murarka
Pankaj Murarka, CIO of Renaissance Investment Managers, highlighted a potential shift in global markets due to expected US Federal Reserve rate cuts. He suggested market corrections and sectoral rotations might follow. Despite global uncertainties, Murarka expressed optimism about India's market fundamentals and identified long-term opportunities in sectors such as IT, healthcare, and commodities.
Constructive on this mature market; not ruling out correction and consolidation: Sandeep Tandon
Sandeep Tandon, CIO, Quant Mutual Fund, discusses potential impacts on trading volumes due to short-term gains tax changes. Maturity and global interest will help absorb the shock. Bond market positively responded to fiscal discipline. Key concerns include the US market and interest rates. Investment opportunities exist in FMCG, PSUs, insurance, and energy sectors.
Market may give up gains in high-flying sectors like PSUs, defence & railway-related stocks: Sandip Sabharwal
Markets have reached a level where it makes sense to be cautious. Many of these companies which also have strong outlook for growth, they might also correct by 20-30% before they come to reasonable buy levels.
Bull market not over; expectation of high earnings growth, rate cut taking markets higher: Mark Matthews
I think we could get a 10-15% drawdown, why not? I mean, if you go back 40 years for the S&P 500, for example, the maximum peak to trough drawdown is 14% on average every year since 1980.
Big correction possible after a couple of months; VIP is a turnaround candidate: Sandip Sabharwal
Sandip Sabharwal says VIP could be a potential turnaround candidate. It is one of the stocks that we hold that has not performed and I would think that at these prices, it offers value and for people who want to wait, they could wait out the results, see if there are signs of turnaround, and then look at buying.
Should investors make fresh bets in FMCG stocks? Rajat Sharma answers
I think in the last 15-20 years, since I have been—18 years to be precise—since I have been looking at the market, I have never seen this kind of bullishness and fundamentals as strong as we have right now.
Buy stocks in every dip: A cheat sheet to find right stocks from the right sectors
CA Rudramurthy BV shares insights on the market, highlighting opportunities in IT, pharma, and FMCG sectors. He recommends caution with PSUs and emphasizes stock-specific investments. Bajaj Finance and Manappuram show potential for gains with tight stop losses. Rudramurthy says "we are in the mother-of-all-bull market and this market, both magnitude-wise and time-wise, will surprise on the upside and it is a buy-on-every-dip market."
Buy realty stocks at 15-30% correction; don’t enter defence pack now: Dipan Mehta
Dipan Mehta says that if one has missed out, then it is better to just stay away at this point. Even in bull markets, one should expect corrections and corrections are a good time to load up on stocks that have done exceptionally well and the future also is very good, very positive because of order wins or earning visibility. But in a charging bull market, in a running train like this, it does not make sense to enter.
New bubble? Why are smallcaps and PSU stocks rebounding strongly from June 4 lows? Ashwini Agarwal answers
Ashwini Agarwal says he cannot get himself to agree that the PSU valuations have become quite eye-popping and has room for further upside. But bubbles have their own mind and bubbles can get a lot bigger before they burst. So, there may be a lot of upside.
If you are a good stock picker, you should be able to double your money every three years: Ramesh Damani
Ramesh Damani says he remains bullish and would remain invested. Damani says that even though he is not young anymore, he still feels young. So, he does not want to raise too much cash and remain fully exposed to Indian equities.
Playing contra? Why Atul Suri is not bullish on bank and IT stocks now
Atul Suri says the bull market is about those sectors and themes that did not do well for a decade. In this market most people are going to be in positions in private sector banks and largecap IT, but the bull market is happening somewhere else. The market is never about consensus.
The best time to invest in India was in 1991 and the second best time is today: Ramesh Damani
One can’t be rich in a bull market making 20 points on a stock. You get rich in a bull market when the stock goes up 5X, 10X. Super investor Ramesh Damani says the retail investor should be in the long-term category as opposed to the trading category,
Don't see end of bull market cycle in India for next few years: Ridham Desai
Sensex I think compounds at 12% to 15%, but it will not go linearly up and there will be ups and downs, so there will be periods when the Sensex returns a lot more and then there will be a few occasions when the Sensex is not doing so well.
Bears Stranglehold: Will markets fall 10% and should you worry?
Markets rebounded on Wednesday after a steep decline, but experts warn of a possible 10% correction. With PM Narendra Modi set to take oath on June 8, market assurance remains a key factor.
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