Correction currently witnessed by the market could be because of geopolitical reasons and may not be too deep. Infact it could lead to fresh money back into the market – money that was waiting on the sidelines., said Mehraboon Irani of Nirmal Bang Securities
First, the big picture. The victory fashioned by Modi in India‘s politically most important state will inevitably be seen as a thumbs up for demonetisation; the failure of the Aam Aadmi Party in expanding beyond Delhi will also reassure those who want no threat, however small, to a dominant single party at the Centre.
In a special Bhavcopy segment, Mangalam Maloo of CNBC-TV18 speaks about an auto ancillary stock, Machino Plastics which may get affected as Maruti Ignis is launched.
Rajesh Kothari, Managing Director at AlfAccurate Advisors is of the view that one may see 15-20 percent upside in Bharat Forge.
The demonetisation move is likely to hit Minda Industries' November sales by 13-14 percent says Group CFO Sudhir Jain. He is hopeful the pain will not last beyond the fourth quarter of this year.
In line with most fund houses, Edelweiss Financial Services, too, is placing its bets on financials and auto ancillary space. The fund house is also upbeat on textiles and select pharma stocks, but prefers staying underweight on information technology and telecom sectors.
Sunjay Kapur, Chairman of Sona Koyo Steering Systems, says the company was not on some of the high-growth platforms such as compact SUVs.
According to a study done on top 500 corporates by the rating agency, while the effective tax rate on an aggregate basis for last fiscal was 24 percent, half of the corporates paid taxes at lower than the proposed rates of 25 percent.
The agitators have been slowly ebbing away and the blockades are being removed. Kanoria says things should be back to normal very soon.
Nilesh Shetty, Associate Fund Manager-Equity, Quantum AMC tells the sectors that would be biggest beneficiaries of GST.
Deven Choksey of KRChoksey Investment Managers is of the view that one may prefer auto ancillary stocks.
The auto ancillary space is a good bet in this market. The sector has shown strong earnings growth, says Taher Badshah of Motilal Oswal AMC.
In an interview to CNBC-TV18 market experts, Sudarshan Sukhani - s2analytics.com, Ambareesh Baliga, Independent market expert and Mayuresh Joshi of Angel Broking shared their readings and views on some stock specific ideas from the auto, auto ancillary, PSU banking and technology space.
According to Andrew Holland, CEO of Ambit Investment Advisors, 8000 can be a great entry point on the downside. He is betting on banking and industrial stocks, but asks investors to avoid consumer durables due to high valuations and IT stocks.
According to Sachin Shah, Fund Manager at Emkay Investment Managers, one may prefer auto ancillary stocks.
ICICIdirect.com has come out with its technical outlook for 2015. According to the research firm, Auto, auto ancillary, capital goods, PSUs and cement are the top sectors. However, BHEL, BEL, Alstom India, Exide, Federal Mogul, Asahi India, Ramco Cement, GIC Housing & Nilkamal are the prefered picks.
Dipan Mehta, Member at BSE & NSE positive on banks, FMCG, auto and auto ancillary space.
Sitting at its 52-week high today, the company now commands a market capitalization of Rs 65,000 crore, equaling that of capital goods major BHEL. While Bosch in its own right is a behemoth in the automotive component industry, its sales and profits are one-fourth of BHEL
Anish Damania of IDFC Securities says interest in construction companies is making a comeback. While cash flows continues to remain an issue, they are receiving orders.
P Vijayaraghavan, director at TVS Srichakra says the company registered a growth of around 20 percent in the second quarter over the year-ago period.
Yogesh Munjal, MD, Munjal Showa Limited says margins should expand if demand is strong. He expects 11 percent revenue growth in FY15.
Vivek Chaand Sehgal says there is no reason to be unduly concerned about the rupee versus the euro scenario considering that most of Motherson Sumi's manufacturing takes place in EU. At the most, there can be a minor translation loss, but that's about it
Market expert Ambareesh Baliga remains positive on cyclicals and expects them to become more attractive post any market correction.
The auto ancillary company looks to set up 14 new plants in India, US and Mexico, out of which, production at 3 new plants will begin by September, says Vivek Chaand Sehgal, Chairman, Motherson Sumi Systems.
Harish Sheth, CMD, Setco Automotive is of the view that scenario in the commercial vehicle (CV) sector has also improved considerably.