Largecap stocks
One reason is enough to stay with them for the long term. 7 large cap stocks from different sectors with an upside potential of up to 28%
What makes a stock move from mid cap to large cap ? One is the technical reason which gets impacted by what definition, regulator and exchange decide for the classification of stocks. But for reality what matters is the size of the business opportunity in which that company is operating. It is only when growth will come with both pace and sustainably that top and bottomline line will grow and that will what makes a company bigger and stock a large cap one. Let's take an example. Fifteen years back, not many would have thought a stock exchange ( BSE ) in this case 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.
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.
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.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of over 25%
As far as Nifty is concerned, bulls have never left control so there is no point even talking about it. Now in the last few sessions, it is clear that bulls are once again making an attempt to control every corner of the street once again which is to improve the market breadth of all segments. But because valuations are high, one has to be cautious, while being bullish. The reason why we are being cautious is that valuations have once again begun to move from expensive to extremely expensive even if one takes into account the results from Q1. 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.
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
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.
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.
Large, mid and smallcap stocks that mutual funds bought and sold in July
In July, mutual funds purchased stocks worth Rs 206 billion, focusing on Vedanta, HDFC Bank, and ITC, while reducing their stakes in TCS, NTPC, and Avenue Supermarts. New largecap entries included Adani Enterprise and IDBI Bank. In the midcap space, Lloyds Metals and Yes Bank appeared, with JTL Industries in the smallcap sector.
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.
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.
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.
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
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.
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.
Be selective to beat this & other phases of unexpected volatility: 5 largecap stocks from different sectors with upside potential of up to 26%
One NSE circular and there is volatility across the market, before reacting to volatile moves, it is better to understand that when it comes to volatility, there are three things which one needs to take into consideration. First the magnitude of volatility. Second, the frequency of volatile movement and third which are the sectors leading it and overall market breadth during a volatile phase. There is a high probability that we might see more of it in the coming weeks. So, it would be better to stay prepared for volatility. One of the ways for that would be to stay with large caps and that too where there is strong reason. For example, a tyre manufacture, which ventured into global markets, its margins took a hit due to capex and now its expansion is paying off, or a tech major which accepted that it had faulted and now is on path of course correction.
Sometimes skepticism should not be first port of investing: 4 largecap PSU stocks from different sectors with upside potential of up to 29%
While a part of it is due to valuations, another part is due to doubts about whether the government will continue to focus on making the PSU a set of better run companies. If one looks at the announcements which have come in the last four weeks, there is a high probability of that happening.
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.
Being bullish & being cautious are not antonyms: 4 largecap stocks from different sectors with upside potential of up to 41%
There are a number of times when one hears on the street, that indices and stocks have gone so high, how much higher it can go, so forget it. Essentially the underlying feeling is that just because the nifty and sensex has moved up now it will not move so let's not invest. That is probably the worst mistake one makes because at every level, this narrative comes. When nifty was 20,000 this argument could have been made, now at 24,000 also this argument can be made and when nifty is much higher, the same argument will be made. One needs to look at the broader picture, there is no reason why one should not be bullish about India, but that does mean one should not be cautious in terms of selecting the stocks. so , continue to be bullish, also be cautious and invest in a manner that short term profit booking moves don't make you anxious.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 23%
A simple question which probably has the most complex answer. Till date which set of stocks have delivered best returns in 2024. Last year the narrative was about mid and small caps having outperformed the large caps. In the first half of 2024, there is no such narrative and no clear answer. There is historical evidence that when this happens in the next six to nine months, it is large caps which tend to perform well. This happens due to high valuation differential in mid and large caps is bound to reduce as mean reversion takes place. 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.
HDFC Bank, RIL among top 5 largecap additions by mutual funds in June
SBI MF, Kotak MF, Axis MF, Quant MF and Aditya Birla Sun Life MF were among the fund houses which shopped for HDFC Bank shares worth Rs 6,800 crore. At the end of June, the total number of shares held by all mutual funds in HDFC Bank stood at 154.26 crore versus 150.20 crore crore shares at the end of May.
As election dust settles, making a come back along with bulls: 4 largecap stocks from different sectors with upside potential of up to 21 %
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 given the fact that the US Fed is clearly indicating that the interest rate will come down. 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.
For volatile market conditions: 5 largecap stocks from different sectors with upside potential of up to 29%
Once again on Wednesday, there was a lesson for all who think that bull markets don't see volatility. All of sudden there was a sharp dip in Nifty and other broader market indices, except bank nifty which was trading in green thanks to the fact its largest constituent HDFC bank was trading in green. When valuations are high, volatility never gives notice before coming so one should always be prepared for it. Another point to be watched, if the frequency of the volatile phase increases and if it starts to happen every other fortnight, it might be an indication of profit booking. There is a possibility that as markets inch higher on index levels, there is some sort of rotational profit booking happening. So, it would be better to stay prepared for volatility. Another reason for staying with large caps is that valuations are high in large part of the mid and small caps and they are the ones which might lose more weight if there is any correction due to global reasons.
Nothing matters more, long runaway of sectoral growth and strong balance sheet: 5 largecap stocks with upside potential of upto 41%
In the next few days the street is bound to see more political speculation and analysis. Right from who has been allocated which portfolio and many others. In such times, the best thing to remember is that political development keeps happening at regular intervals and investing principles have endured many situations including political headwinds. If you are really a long term investor, then develop the ability to ignore the political news and analysis, which half the time goes wrong and just focus on what business you either own or will own after you buy the stocks and are the long term growth prospects of that business are good or not. If the stocks fits on that parameters, then all volatility, panic phases are opportunities for investing in such stocks.
Largecap stocks getting good flows, not largecap funds: DP Singh, SBI MF
DP Singh from SBI MF discusses the latest AMFI data showing increased SIP flows in equity funds. While largecap funds show muted inflows, midcap and smallcap funds continue to receive strong investments. The market remains optimistic about future fund flows.
Nifty valuation above 5-year average, most narratives priced-in. What should investors do?
Since the June 4 market debacle when Nifty hit a low of 21,884.50, it has seen a rally largely moving towards north. The index attained a lifetime high of 24,433.20, traversing 2,560 points or 12%.
These largecaps have ‘strong buy’ & ‘buy’ recos with upside scope of over 19%
While one might be focussed what is happening in nifty and mid-cap space, if one looks at the recent performance of the large caps, there are a number of them which have done a catch up in just the last two weeks. When the valuation differential in mid and large caps stocks becomes extremely high, large caps tend to do well as mean reversion takes place. There is a high probability that we might see some of that happening in the next couple of weeks. Given the rotational trade which is taking place in the market, overall sentiment is likely to remain bullish. 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 24%
It is clear both indices, nifty, sensex and market breadth are under the control of bulls. As indices form new highs, probably we are going to see a phase, where the momentum itself becomes fuel to fresh money coming to the markets. The profit booking which may take place is likely to make index moving in sideways range. One or the other sector which forms part of the indices will keep coming and witnessing up move or down move on a rotational basis. One day IT stocks will handle the decline, other day it would be banks and the balance is maintained. 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.
Business first, stock second: 5 largecap stocks where management & business are better placed with an upside potential of upto 23%
What does a hospital, chemical or rather specialty gas supplier, FMCG, and real estate company have in common? Surely not the product. What binds them is the ability of management which has been tested in tough times. Another common factor, business is such that returns on investment are higher and are also consistent. The reason why these things become important at this point of time is the fact that in bull markets, there is no dearth of explanation and narrative, when putting money one has to look at one reason which becomes the focal point to avoid panic when there is correction. So, if the management and business are good then corrections will come and go and in the long term higher return would compensate for the patience which one shows in the times of correction.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 20%
The way markets have panned out in the last few sessions, it appears that bulls are waiting for a confirmation on 4th of June and then they will take over control of the street. But because valuations are high, one has to be cautious, while being bullish. Also as a thumb rule, one should remember that corrections and consolidation are part of every bull market. We will continue to see them at regular levels. 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%
While the recent up move in large caps 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 of mean reversion. It might happen in both ways, mid-cap witnessing some profit booking and 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.
Should you prefer RR Kabel over Polycab? Amnish Aggarwal explains why
Amara Raja and Exide have re-rated with a new energy focus, positioning for growth in evolving markets. Coming to aviation IndiGo stock has given a very sharp rally over the past six months, so the incremental returns may be more measured but at the same time, the positive news flows in IndiGo will continue and that might keep the investor interest alive in the stock, says Amnish Aggarwal.
Amnish Aggarwal on 2 top cement large-cap stocks to bet on; best buy in auto
“Mahindra & Mahindra continues to be an exception where the volume growth continues to be good, both in UVs as well as if you look at the tractors, tractors after last year's decline are turning to be positive, although the valuations are rich, if a double-digit volume growth in the PV business continues, M&M can still do well from the current levels.”
Strong balance sheet & long runaway of sectoral growth: 5 largecap stocks from different sectors with upside potential of up to 37%
When investing in any stocks, be it a large, small or medium cap there has to be one strong reason why one should invest in. It could be a strong balance sheet, strong brand, long runway of growth for the sector. Because if one of these are present in a company then the short term volatility in the market does not matter. They come and go and finally these stocks are able to deliver returns. Especially at a time when the index is forming a new high and sentiment all bullish, it is more important to stay cautious because however strong a bull run might be, it has phases of correction like the one we saw in March and as recently as last week. If one is staying with quality stocks, the probability of faster recovery when bulls are back is high. We look at 5 stocks from different places where either one or more of the three things are present.
What to buy with D-St at lifetime high? Keep good company, go for largecap stocks
Reflecting on past milestones like 50,000 and 75,000 reveals them as profitable buying opportunities, with investors earning double-digit returns even from earlier 'record high' levels. The recent 10,000-point increase from 70,000 to 80,000 signifies a 14.4% growth, while reaching 90,000 from 80,000 will necessitate a 12.5% gain. Maintaining a consistent investment approach remains wise, irrespective of market highs.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 20%
While it might be a bit early to say, but the way things have panned in the last couple of weeks, it is clear that bulls are not in any mood to leave the street. At the same time bears are also clear they will wait and on sidelines till election results. Two things one should remember at this point of intersection which rarely comes, that finally it is the business and the management which matters. Probably management of the large cap companies have that in abundance for two things, manage difficult times and by the end of the day grow. The only thing any investor needs to make sure is that in any corrective phase, bias when making fresh investment should be toward large cap stocks as there is a possibility that they would see less damage in corrections. 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.
Stocks with tailwinds called advantage India: 5 largecap stocks from 3 different sectors with an upside potential of upto 36 %
In terms of valuations and sentiment we are not far from the place where we were in the last quarter of 2023 or early part of this year. When it was not possible to find stocks which can be called as “fairly valued” forget “undervalued”, and the sentiment was very bullish. The only difference between then and now is that we have election results which are coming up. Surely a confirmation on 4th June that continuity in the policy making is a big factor. But there is another thing which long term investors need to look at before investing. Whether the company or the sector has an advantage due to India as a country. A well known example, which has been present for decades is that of the IT industry. India as a country is a factory of software engineers, and that is our strength. So when investing for the long term, look at sectors where we have some strong tailwinds due to our human capital.
Are FIIs getting into a big buy mode in India? Dipan Mehta answers
On days of positive FII flows largecap stocks will do exceptionally well because those are the ones that they really are targeting and if FII buying, even FII selling, stops in some of the largecap index stocks, local money will ensure that the stock prices move up, says Dipan Mehta
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 23%
Of the last seven trading sessions, in three trading sessions, nifty which opened with a gap or came under pressure after opening has been able to recover and ended the day in positive territory. It is a kind of rotational support coming in from different stocks and sectors. There are banks one day and then they take a back seat and industrials come to support. Is the distribution taking place or is it a kind of consolidation which is taking place and a strong directional move would emerge after the budget that needs to be seen. But in all the cases there is greater chances that it is large cap stocks which will remain in limelight. 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.
ETMarkets Smart Talk: Chemicals & CRAMS sectors likely to get re-rated in FY25: Nimesh Chandan
Nimesh Chandan discusses FII selling, Nifty earnings estimates stability, and the potential for continued growth in the Real Estate sector post-election results. Chandan further says that largecap stocks currently offer a better risk-to-reward ratio compared to midcaps and smallcaps. He says: " On the business side, we expect chemicals and CRAMS(Contract research and manufacturing services) sectors, which has been an underperformer for the past few years, to get re-rated as business improves this year."
Higher ability to withstand sudden headwinds: 5 largecap stocks with right mix of RoE & RoCE
There are two kinds of risk in equity markets, first the overall market or asset class risk. Second is individual risk. First risk is not under control of anyone, because it can hit the market due to any reason, right from any geopolitical uncertainty to any monetary event in any part of the world. Probably the first kind of risk got played recently with the flip flop of the US and development in the middle east. The second risk which is individual risk is about the choice of the stock which one buys. In equities after a point of time it is more important to manage individual risk than to take risk. In equities the risk is more in the short term, over longer term, it is not very high. One way to manage risk is that when valuations are high, move to companies which have strong and large balance sheets and have seen many economic cycles and have survived the slowdowns in the past.
Focussed ‘underlying business’ approach of long-term investing: 5 non-Nifty largecap stocks with upside potential of up to 39%
Whether one accepts it or not, when someone uses the word large cap, first names which would come to mind would be nifty stocks. Because somehow the word large cap has become synonymous with nifty stocks. But the fact is that the world of large caps is much bigger and there are stocks which have been able to show strong out performance in troubled times of volatility, we take a look at them. When it comes to long term investing in the same industry, some players are able to show better performance in terms of growth. This could be because of belonging to a strong group, because the management had set the business in a way that it is able to take headwinds or the market size is so large that growth is bound to make and it comes with better margins to efficient players. We take a look at 5 stocks where the underlying business is strong and good to own business for the long term.
Bet on largecap, index stocks; try and take your portfolio to safer sectors: Dipan Mehta
The larger ones, the large banks, the large IT companies, the large pharma companies, they are still in that ballpark figure of 15 times to 30-35 times trailing 12-month price to earning multiple.
Better suited for volatile market: 5 largecaps from different sectors with upside potential of up to 47%
In the last few days bears are not making any distinction between large or mid or small cap stocks they just crush everything, it might appear that there is no point in making a distinction between these segments of the market. But the fact is that periods like this are a reminder of many basic things which one should remember before taking any investment decision in equity. First and foremost, after buying a stock you will own a business and what business you own is more important than what is happening to nifty or any other indices. Second, if you are a real long term investor then short term corrections should not bother you as they have come in the past and they will come in future also. What one should look for is whether the underlying business is witnessing any change or not and whether that change is positive or negative for the business. Last but not the least, do your homework before investing and not after investing.
IT sector: As the global interest rate cycle changes, time to shed the bias against them? 7 software stocks with upside potential of upto 32 %
In the last few days, there have been trading sessions where all of sudden IT stocks have started to do well. This is coming at a time when there is nothing positive which either companies from the sector have said or there is anything else which can be seen as signs of things changing for better. Is this an first indication that global risk on trade is back on the table. There is enough evidence to show when US interest rates are high, there is a risk off mode globally and tech stocks both in India and globally don't outperform, rather they at times under perform. As soon as there is an indication that interest rates in the US are likely to come down, the risk on trade tends to make a comeback and tech stocks start to do well globally. But incase of Indian IT stock, there is probability that this risk on trade is helpful but another factor is adjustment of valuations and finally the fact that some money is going to move toward a strong and stable balance sheet.
Fresh tailwinds of export markets: 5 stocks from engineering sector, 4 with upside potential of up to 30%
They say that tough times bring the best out of some. In case of India Inc, there are many examples where the economic slowdown post 2008 global financial crisis, made companies deal with all kinds of troubles and after various permutations and combinations they were able to find solutions, first to survive and then grow. In the case of engineering companies where the role overlapped to some extent with capital goods, it was the export market which turned out to be the solution. Because it is not easy to venture into the export market as there are large global players who ensure that it is not easy to get into their turf. For some companies it was a long drawn process which is now delivering results and leading to a situation where the return on capital and effort employed is much better today.
TRADERS’ CORNER: This largecap stock ready for 4% swing and PSU banks set to rise 7%
The markets closed at a lifetime high with the Nifty 50 index gaining 66.70 points (+0.29%). An energy major is set for an upmove post consolidation. RELIANCE stock may break out. Bank of Baroda Ltd eyes a breakout. Milan Vaishnav and Foram Chheda provide technical analysis.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 20%
There are clear indications that some amount of volatility will be back on the street. First phase of the volatility is normally led by large cap stocks, and even today large caps from different sectors are witnessing pressure. But the other fact is that recovery in the market is also largely led by the large cap and they stabilized much before other segment of the market. The pattern of the sectoral correction is visible. Yesterday, it was banking which led the correction. Today it is metal stock which is leading the correction as the bank stabilizes. 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 over 20%
Just because the Nifty has been trading in a volatile mood for the last few trading sessions, the word correction might be heard on the street. The fact is that if one looks at the internal of the markets, there has been an ongoing correction which is taking place which has been largely guided by the numbers which companies have delivered for Q4. Also there is a kind of sectoral correction taking place. The good part is that such kind of sectoral corrections are indicative of underlying bullishness and these corrections are part of any bull run. The only thing any investor needs to make sure is that in any corrective phase, bias when making fresh investment should be toward large cap stocks as there is a possibility that they would see less damage in corrections which are stronger in nature due to global or macro developments. 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 over 20%
Just because the Nifty has been trading in a volatile mood for the last few trading sessions, the word correction might be heard on the street. The fact is that if one looks at the internal of the markets, there has been an ongoing correction which is taking place which has been largely guided by the numbers which companies have delivered for Q4. Also there is a kind of sectoral correction taking place. The good part is that such kind of sectoral corrections are indicative of underlying bullishness and these corrections are part of any bull run. The only thing any investor needs to make sure is that in any corrective phase, bias when making fresh investment should be toward large cap stocks as there is a possibility that they would see less damage in corrections which are stronger in nature due to global or macro developments. 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.
Amfi stock classification: Multibaggers BHEL, NHPC, 5 more stocks to likely turn largecaps
In the upcoming Amfi Semi-Annual Categorisation for the second half of 2024, seven stocks, including Hero MotoCorp and BHEL, are poised to move to the large-cap category from mid-cap. Stellar rallies have propelled their returns over the past year.
Staying with selected few is a better option: 6 largecap stocks with upside potential of up to 35%
After a corrective phase, the large and mid caps are once again in party mode. Large caps which had been lagging in a relative manner have been able to make a comeback, thanks to the fact the flows to the large cap mutual funds have seen a spike in the last two months. While the short term movement in the markets might impact the decision making process. But investing in not about a quarter or week, it is much more than them. If one looks at the long term, large caps are able to outperform and create wealth in a more sustainable manner. We take a look at some large caps where there have been some headwinds, either in terms of business of market valuations. But the underlying business is strong and good to own business for the long term.
2 top stock recommendations from Aditya Agarwala
I think that the euphoria will continue throughout the day and maybe if the results are in line with what we see on the exit polls, the euphoria might continue tomorrow as well. So, today and tomorrow you can see a continuation of this rally that we are seeing in trade today.
Lok Sabha election results on June 4: Here's your market playbook ahead of the D-Day
Exit polls foresee a comfortable victory for Modi's government, easing market concerns. May saw market volatility, yet optimism prevails for June 4 results. Analysts advise caution amid potential market fluctuations but anticipate a bullish trend post-elections
2 stock recommendations from Santosh Meena
Even if the BJP comes with a majority, there will be a risk of some profit booking if we look at the 2019 outcome. So, ahead of the actual outcome, the market rallied after the exit poll, but on the day of actual results, the market witnessed profit booking from the higher levels so that could be the case, says Santosh Meena, HoR, Swastika Investmart.
Staying with good business & strong management: 5 largecap stocks from different sectors with upside potential of up to 37%
After a phase of calm, volatility is back on the street. Somehow word volatility got associated with bearish trend, while it might appear strange to some, the fact is that even volatility has a bias and that can be toward bulls also. That is the reason why in this volatile phase, Nifty made a new high. So, rather than fearing a word it is better to understand it. Similarly when it comes to investing, it is important to understand that while events can impact the price in the short term. In the long term, things which matter is the underlying business, strength and quality of the balance sheet, ability and experience of the management. Whether it is pre-election or post election, always have a look at the above three when investing your hard earned money.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 20%
After the correction in the month of March, bulls are making a comeback on the street. Both at the index level and at market breadth levels. But one thing is for sure as corrections and consolidation are part of every bull market we will continue to see them at regular levels. So it is better to stick with the large caps as they are the ones which have a tendency to recover faster and lead the rally. 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.
Weekly Largecap 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.
Ready for a comeback? 5 largecap stocks from different sectors with upside potential from mere 2% to high of 25%
Just a little nudge by the market regulator and if one looks at the flow to the mutual fund in the month of March, the flows have moved toward large cap mutual funds and the performance of the stocks has been better. One thing which every investor makes a distinction between is the narrative on the street and reality. The question which needs to be asked is whether on the real business side, which is the actual bottomline of the companies, have the large cap well established companies have done well or not. If the answer is yes then it is better to ignore what narrative which short term price movement. There are many companies which in the recent past have witnessed some headwinds and their stock under performed. From a metal major to a tower company to a retailer. Some of them have seen headwind receding and given the fact that bulls are making a comeback, both from a tactical perspective and a long term investing perspective, it would be worthwhile to look at these stocks.
Mid & smallcap fund? Do we need a new category targeting both mid and smallcap stocks
Since the beginning of 2024 large and midcap category has seen inflows of Rs. 11,340 crores followed by multicap category at Rs. 10,004 Cr. and the flexi-cap category at Rs. 9,971 crore, higher than the inflows in largecap, midcap and smallcap categories respectively.
These largecaps have ‘strong buy’ & ‘buy’ recos and upside potential of more than 20%
While it might be a bit early to say, but the way things have panned in the last three trading sessions, it is clear that bulls are not in any mood to leave the street anytime they have been able to handle global headwinds very well. At the same time the risk of bears roam in the mid-cap segment. How long they will be able to roam if broader market indices are doing well is something which is still to be seen. But one thing is for sure as corrections and consolidation are part of every bull market we will continue to see them at regular levels and if they are led by global events, while time wise they might be short but in term of magnitude they might be strong. 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.
Global volatility, domestic solutions: 6 largecap stocks from different sectors with upside potential up to 47%
There are two things which have rattled the global markets. First is the confusion on how to interpret the statement/ data/minutes of the meeting of the US Fed. There is no clarity after the recent inflation number on how things will pan out. Second which has come after some gap is the geopolitical tensions, the development of possible war between Iran and Israel. This means disruption in trade as it is in an area which is logistically important and second, it will have an impact on crude oil prices, which means that inflation in the US may become more sticky. So, this time the probability of geopolitical tensions leading to higher disruption for the global economy and hence for the equity market is high. The next logical question is how to deal with it. The answer lies in history, whether it is geopolitical tension or interest rate cycle getting unexpected disruptions, they keep happening. What one has to focus on is stock selection and owning good business and volatility whether global or domestic is taken care of.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 49%
It is after a long period of time that on Friday bears are visible in both segments of market, in the broader market like indices like Nifty and Sensex, but also in the broader market breadth. There is no major follow up in today's trading session, but given the fact valuations are expensive it would be better to still be cautious. In such times, stocks where there are some improvements in the business operating matrix that tend to weather the storm better. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.
Volatility never gives notice before coming: 5 largecap stocks from different sectors with upside potential of up to 29%
It is after a long period of time, that one can see corrections not in absolute terms but also the fact that when global markets are rising Indian markets have not been able to move higher. Once again on wednesday, there was minor intraday up move in nifty, but the mid cap continued to stay under pressure. Being the last month of the financial year, liquidity during this period tends to be tight. So there's a chance that the midcap segment which is sitting on gains is likely to stay under pressure for some more time. In such times, there is no full proof way, but putting some filter would help at least in avoiding some mistakes. So, staying with the large caps segment, in that too staying with some segment sectors where the tailwind of either policy push or any other would be a better choice. We look at the stocks which have seen an improvement in analysts in the last one month which has been a volatile period for the market.
These largecaps have ‘strong buy’ and ‘buy’ recos with upside potential of over 20%
While it might be a bit early to say, but the way things have panned in last couple of weeks, it is clear that bulls are not in any mood to leave the street anytime, but at the same time bears are also clear that while they will not be able to make much dent on NIfty, so they better roam in mid-cap segment. How long they will be able to roam if broader market indices are doing well is something which is still to be seen. But one thing is for sure as corrections and consolidation are part of every bull market we will continue to see them at regular levels. 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 20%
Today despite the fact that the nifty heavyweights are trading in green territory, nifty is still trading just moving close to the red territory. This along with a negative market breadth is clearly indicating that finally a phase of profit booking has come. There is a high probability that this corrective phase may continue further. Because the valuation differential in large and mid cap had increased very sharply, there is more probability of a mean revision trade taking place. It might be better for have a bias toward looking at large cap when investing fresh money.
Even for long-term investors, putting more checks and balances is the key: 4 largecap stocks with upside potential of up to 26%
While Nifty and Sensex have seen some respite and given the fact that few mega stocks have the ability to push indices even higher, one cannot rule out the possibility of reading the headlines “ nifty forms a new high” very soon. But as we have seen in the recent past, what nifty does and what is happening in the broader market can be very different. So, it would be better to focus on what is happening in sectors and companies, are there some tailwinds that are likely to lead to better overall growth of the sector and hence the companies. Even in those sectors stick with companies that have a proven track record of surviving economic cycles and on financial parameters they are better placed than others. Because it is finally the earnings which will determine whether the stock is able to outperform or underperform broader market indices. We take a look at four stocks where on two parameters, that is net margins and return on equity, the companies are clearly better placed and there are clear sectoral tailwinds.
Taking risk but some checks: 5 midcap stocks from different sectors with potential upside of up to 40 %
As bulls once again take charge of the market both at the index land and breadth level mid-cap are likely to get a push. While there is nothing wrong in being bullish given the fact that policy continuity is the next theme on the street. However, keep some check and balance while participating in this phase of the rally. The reason is the fact that valuations are not cheap and any small profit booking correction may lead to sharp correction in individual stock prices. Yes, in some cases, Q4 numbers have helped in moderation as far as valuations are concerned, but it would be better to stay with select stocks and with sectors where there are some tailwinds. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks which fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.
Stay with companies with some tailwinds: 5 largecap stocks from different sectors with upside scope of up to 50%
When it comes to volatility, there are four things that one needs to take into account. First, the magnitude of volatility, frequency of volatile movement, sectors that are leading it, and overall market breadth during a volatile phase. If one takes all of these into account, the nifty has been able to inch upward but the fact that market breadth is still not clear is the hurdle rate. There is a high probability that we might see more of it in the coming weeks. So, it would be better to stay prepared for volatility. One of the ways for that would be to stay with large caps, this does not mean they will not face the heat, but over the medium to long term they would be the first ones to bounce back and if one looks at what has happened in last two trading session, it is the largecap which is leading the rally. So, in times of volatility which has come due to valuation readjustment, it would be better to stick with large caps and that too companies where there are some tailwinds of either policy or restructuring of the company.
