LARGECAPS

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.

Not in vogue today, but management knows business: 5 largecap stocks from different sectors with upside potential of up to 39%

As the bulls move from state of control to absolute control of the street, there are a couple of things which one needs to remember. One of the things which they throw out of the window is the “sense of risk”. It is this risk which needs to be given due importance in such time because even in raging bulls markets, there are periods of correction which come unannounced. We are not saying that a correction will come any time soon but no one can rule out volatility given the fact that what the US Fed does is still not clear. But given the fact that valuations are still high, it would be better that one should be more cautiously bullish and more selective when putting in fresh money into stocks.

Kotak Mahindra Bank, Adani Enterprises among 10 largecap stocks where FIIs reduced exposure in Q1

Trent, Canara Bank among 10 largecap stocks where FIIs increased stake in Q1

These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 30%

If one looks at the recent performance of the largecap stocks, they have been able to cover some of the differential which had developed in the valuations between mid and large stocks. But if one looks at the long -term average, there is still a scope of mean reversion. As an investor, even in a bull market, it would be better to stay prepared for a volatile phase. So a part of the incremental exposure should be going to large cap stocks. But here the difference has to be made between what is a large cap and what are mega caps. There is more to large cap than TCS, Infy and Reliance. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". The screener applies different algorithms for all BSE and NSE stocks.

One reason is good to own them: 5 largecaps from different sectors with upside potential of up to 31%

First because the Yen carry trade unwinding and then because of domestic news flow around allegations and counter allegations, markets have been once again witnessing a phase of volatility. What is leading to volatility ? It is more due to profit booking than any kind of basket selling. Will it continue or not ? The probability is high that it might continue. Because the way the market is reacting to Q1 results it is clearly making a clear distinction between meeting the expectation and not meeting the expectation. Now whether one can turn volatility into an opportunity depends on what stocks one is buying. Because if one is buying stocks which are quoting at price earning multiple of 100 just because at this point of time that sector or theme is flavor of the street, then volatility might have more impact, compared to large cap stocks where there is strong reason why growth is bound to come in business.

Midcap funds AUM zooms past large-caps on sustained inflow

According to AMFI data, mid-cap funds now surpass large-cap funds by 60 basis points in assets under management, accounting for 12.9% of total equity AUM compared to 12.3% for large-cap funds. This marks a significant shift from 2020, when large-cap funds held a 20% share. Increased inflows and market appreciation contributed to this growth.

These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 30%

While the under current of the market is still bullish but as corrections and consolidation are part of every bull market, it would be better that investors better be ready to deal with volatility at every point of time. If it comes due to international reasons then the initial part of any volatility is led by large caps, there is a higher probability that the large caps are able to stabilize much before any part of the market. But if it comes due to local reasons, then it is midcap which comes under pressure. If one is thinking of fresh exposure to the market it would be better to stick with large caps. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". The screener applies different algorithms for all BSE and NSE stocks.

More tightening on the way for NBFC? Stay with stronger balance sheets, 5 NBFC stocks with an upside potential of up to 29%

Choosing the right company in any sector is extremely important but when it comes to investing in NBFC stocks, it is extremely important to check on things like quality of balance sheet and parentage. There is a very clear lesson from history, if you bought Bajaj finance, wealth creation happened, if you bought DHFL then wealth destruction happened. The question would arise, why buy NBFC if it has such risks? The answer is simple, as a sector NBFC will grow at a faster rate than a number of sectors. Why will the growth be faster? Because they provide credit and credit was / is / will remain more in demand than supply. So, a provider of credit is bound to grow as the Indian economy grows

To take care of possible headwinds: 4 largecap stocks from different sectors with upside potential of up to 38%

Market has a strange habit of giving surprises on both sides, moving up when no one is expecting and news is bad all around. Falling when no one is expecting it to fall and there is good news all around. This week it was the turn of the second one. Instead of predicting the time when there will be a correction and how long it will continue, a better option is to just be ready for it. Ready by staying with large caps and that too with sectors and stocks where some tailwinds are emerging. This is not to say that there cannot be some underperformance in large cap space, but the fact is that over the long term these large caps not only create much more wealth but in a bearish phase, they tend to protect the wealth by falling less as compared to mid and small caps

More tightening on the way for NBFC ? Stay with stronger balance sheets, 5 NBFC stocks with an upside potential of up to 29%

Choosing the right company in any sector is extremely important but when it comes to investing in NBFC stocks, it is extremely important to check on things like quality of balance sheet and parentage. There is a very clear lesson from history, if you bought Bajaj finance, wealth creation happened, if you bought DHFL then wealth destruction happened. The question would arise, why buy NBFC if it has such risks? The answer is simple, as a sector NBFC will grow at a faster rate than a number of sectors. Why will the growth be faster? Because they provide credit and credit was / is / will remain more in demand than supply. So, a provider of credit is bound to grow as the Indian economy grows

These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 25%

If you are thinking why Bank nifty was amongst the indices which got hit maximum on Monday. The answer is simple, the first part of every correction is also led by large caps stocks and that too specifically the stocks from the sectors which have big ownership by FPI. The biggest FPI exposure is in banking and IT stocks and that is the reason why banking was hit. The other fact is, large caps are the one to bounce the first because the same FPI will come and buy large, though it might from a different sector. Also a correction which has emanated from global markets tends to be stronger, but also short lived. Yes, this is happening due to unwinding of the Japanese carry trade. But a simple point, unwinding of carry trade has a limit and when that gets over, probably the Indian market will be an out performer. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". The screener applies different algorithms for all BSE and NSE stocks.

These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 25%

If you are thinking why Bank nifty was amongst the indices which got hit maximum on Monday. The answer is simple, the first part of every correction is also led by large caps stocks and that too specifically the stocks from the sectors which have big ownership by FPI. The biggest FPI exposure is in banking and IT stocks and that is the reason why banking was hit. The other fact is, large caps are the one to bounce the first because the same FPI will come and buy large, though it might from a different sector. Also a correction which has emanated from global markets tends to be stronger, but also short lived. Yes, this is happening due to unwinding of the Japanese carry trade. But a simple point, unwinding of carry trade has a limit and when that gets over, probably the Indian market will be an out performer. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". The screener applies different algorithms for all BSE and NSE stocks.

Be selective in all market conditions: 5 largecaps from different sectors with an upside potential of up to 38%

At a time when indices are making new highs, small and mid-cap stocks are moving higher and higher every day, talking about volatility and possibility of corrections is something not many may like. The fact is that Volatility does not give notice before coming so it is better to be prepared for it. Even in the best part of a bull run, corrective phases do come. As an investor, just be prepared for it. How does one prepare for it? One way is by sticking with large cap companies and that too one where there are some tailwinds for the business which will help them do better as compared to others in fundamental ways not just the stock price doing well.

8 largecap stocks below industry PE levels can rally up to 17%

These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 25%

While the recent upmove in largecaps has made them cover some of the differential which has developed in the valuations between mid and large stocks, if one looks at the long term average, there is still a scope for mean reversion. But as an investor, even in a bull market, it would be better to stay prepared for a volatile phase. So a part of the incremental exposure should be going to largecap stocks. The reason: there is enough evidence of large caps doing relatively well in the corrective phase of the markets. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". The screener applies different algorithms for all BSE and NSE stocks.

Street Favourites! 5 large & midcap stocks with high analyst ratings that can deliver up to 32% returns

Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus

Stock Reports Plus, powered by Refinitiv, undertakes detailed company analysis for 4,000+ listed stocks. In addition to detailed company analysis, the report also collates analysts’ forecasts and trend analysis for each component. An average score in Stock Reports Plus is calculated by undertaking quantitative analysis of five key investment tools - earnings, fundamentals, relative valuation, risk and price momentum.

As recovery sets in, look beyond TCS & Infy, 4 specialised largecap IT stocks with upside potential of up to 28%

A day after Nasdaq had fallen by more than 3 %, to see Indian IT stocks trading with minor cuts and some even witnessing intraday recovery is something which is probably which indicates more than obvious. This has to be looked at in context of the fact that as a sector IT stocks has been underperforming then why this sudden out performance. Also combine the fact that most of the large IT companies which had been coming out with Q1 results have been better than expected. So, probably it might be the time to shed the bias and look at the sector without recency bias. Check out Stock Reports Plus, powered by Refinitiv, for price targets of over 4,000 listed stocks along with detailed company analysis focusing on five key components - earnings, fundamentals, relative valuation, risk and price momentum to generate standardized scores. SR+ Reports is a complimentary offering to ETPrime members.

In bull market staying focussed on real business pays: 4 largecaps from different sectors with an upside potential of up to 42%

It is a matter of a day or two that all the noise of the budget would be over and the market will once again be focussing on what it had been doing for ages, that is earnings of the company and broader macroeconomic picture of the country. Of the two, the macroeconomic picture is the same for every company and for the majority of them it is good. The first is the earnings which are different for each company and that is dependent on the underlying business and how good or not so good the management is about that company. So, focus on them and there are many companies which either after facing a challenge are making a comeback and where the challenge of high valuations has also come down. So it is better to have them on a watchlist.

These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 30%

It might appear odd to some but the fact is that if one looks at the last few years' budget, it has been more a statement of what kind of policy changes will happen over the next twelve months or even longer period. So, a budget which defines policy direction rather than specific. Will the budget be different because it is coming with a backdrop of a stronger fiscal situation. Whatever the cases might be, one cannot rule out correction if there is any sort of disappointment for the street, probability of which looks a bit less. But because valuations are high one should be cautious and stay with large caps as a tactical trade. They might bear the brunt of trade initially but over a period of time in any corrective phase they tend to do well.

A strong balance sheet and big business potential is the key: 5 large stocks from different sectors with upside potential of up to 43%

Fifteen years back, not many would have thought a stock exchange would be listed as a company and one would be able to buy its share. But today it is listed and its turnover has grown multifold in the last few years and stock turned out to be multibagger. More than anything else, the reason for it becoming a multibagger is that the size of the capital market in India has grown many times. So, as principal before look at the stocks and which category of cap it falls in , better to look at what is the size of the market in which the company is going to operate, because at the end of the day, profit of a company is a subset of the overall profit which is generated in sector and only if that is going to grow than company in the space will grow. We look at 5 stocks where there is a reasonable probability of overall market size being bigger and companies have strong balance sheets to take advantage of that.

Simple moat is good enough reason : 5 large cap stocks from different sector with right ratio matrix and upside potential of upto 38%

There are many textbook definitions of the word “ moat”. But what it means in simple terms is that there has to be something in a business and the management which makes it different from others and also helps it grow faster and more importantly on a sustained basis. It is not a very complicated thing, just a look at some basic numbers, a look at what the company management had said 5 years ago, whether it has been achieved or not. For example, in sectors where the debt is normally high because of the nature of business, a company which has been able to grow while keeping debt at a lower level is positive and is surely a moat, while if one goes by strict textbook definition of moat it might not fit it.