Short Call: Bulls eye poll results, copper rally, Vedant Fashions, Ashok Leyland

Rally in copper appears to be running into some resistance

The fourth quarter earnings season appears to be going well without too many unpleasant surprises. But the focus right now appears not to be so much on earnings and valuations, but on what the market will do after June 4 when the election results are announced.

In the commodity market, the rally in copper appears to be running into some resistance even as the medium-term outlook remains positive due to strong demand and dwindling supplies. But a lot will also depend on the demand for copper from China. According to a Bloomberg report, fabricators in China are already baulking at high prices and have slowed down their purchases.

Ashok Leyland (Rs 201.4, +4.54%)

The stock gained after the company reported strong April sales.

Bull argument: Combined sales of M&HCV and LCV units (including exports) rose 10 percent year-on-year to 14,271 units in April.  M&HCV bus sales jumped 171 percent to  2074 units.

Bear argument: According to ICICI Securities, domestic goods M&HCV industry is likely to see flat volumes this year, followed by 10 percent decline next year. The brokerage recently downgraded Ashok Leyland to a sell, with a price target of Rs 140

Vedant Fashions (Rs 993, -1%)

The stock reported a weak set of Q4 numbers.

Bull argument: The management expects sales to pick up from the second half of this year. The company has ramped up its number of stores and is consolidating some of its smaller stores. As income levels rise, demand from tier 2 and tier 3 cities will drive growth.

Bear argument: Stock more than 30 percent down from its peak in October 2022. Barring the big jump in December quarters, sales for other quarters have been rangebound.

Indiamart Intermesh (Rs 2,858.20, +8.11)

The stock gained on strong Q4 earnings, a typically slow quarter for B2B business.

Bull argument: EBITDA margin came better than expected due to lower tech cost and sales and marketing costs.

Bear argument: Subscriber addition has slowed down which has affected collections. Most buyer traffic metrics have also been weak for several quarters now, says JM Financial. Management reiterated its aspiration of 20-25% collections growth, but no guidance on when normalcy could return, the JM report says.

Mahindra & Mahindra (Rs 2,183.8, +1.27%)

Stock made a fresh all-time high as the market reacted positively to the company’s April sales figures.

Bull argument: Mahindra sold 41,008 utility vehicles in the domestic market, a growth of 18 percent. Recently launched SUV XUV 3XO is going head-to-head with Maruti's Brezza and Hyundai's Venue.

Bear argument: The company reported muted farm business and tractor sales.

Mindspace REIT (Rs 353.82, -0.4%)

The company recorded its best-ever quarter in the March quarter.

Bull argument: The company has applied for floor-wise SEZ de-notification at its Airoli assets and plans to apply for more areas in the coming months. Growing leasing demand from Global Captive Centres and an increased workforce attending the office physically are the positives for the company.

Bear argument: Rise in vacancies and fall in lease rentals could be a negative for the REIT.