The Nifty50 has fallen by about 10 percent so far in April, partly weighed down by dismal results from India Inc. in March quarter and muted management commentary.
The Indian benchmarks jumped nearly 3 percent on the closing of the long weekend for the market. The investors are still in hope for the stimulus package by the government.
Tech Mahindra March quarter results were below analysts estimates, and the pain seen in the March quarter is likely to extend in Q1FY21, suggest experts.
After being darling of investors in the past 5 years, private and public sector financial stocks could see a bounce back because the economy cannot turn around without credit growth.
The selling pressure from the outbreak of COVID-19 with illiquid markets and negative sentiments on the street due to the economic slowdown left Franklin Templeton to close the scheme.
Investors should avoid travel-related bets like Aviation, Casinos, Hotels, and Resorts, all of which will continue to be severely hit. Steer clear of stocks linked to high-end consumption, Real estate, and Oil.
Consumer/Private Banks (benefit of low base)/ Healthcare is expected to be the key outperformers this quarter, and all the key matrices are expected to post multi-quarter low growth figures.
There are a wide range of stocks that look attractive over the medium to long term. In Banking, ICICI Bank and Kotak Mahindra Bank look attractive, says Naveen Kulkarni.
Management commentary during March quarter will be an important trigger for the movement of stocks in the near term.
With almost nil manufacturing activity in this 21-day period and slow ramp-up thereafter ICICIdirect downgrades Nifty earnings estimates to the tune of 4% for FY20E, 18% for FY21E and 13% for FY22E.
Reacting to the results, Deutsche Bank maintains its hold rating on Hero MotoCorp with a target price of Rs 3300 as the results were slightly below investment bank’s estimates.
Axis Bank's scrip today fell by nearly 5 percent after the company's March quarter earnings disappointed the Street with a profit decline.
Indian technology companies are unlikely to bring any cheer to investors in the March quarter earnings season. According to Antique Stock Broking currency will impact growth of IT companies in Q4.