For markets to do well, more aggressive steps and reforms are needed, says UBS
A peculiar pattern of gradual recovery post sharp decline is observed within the index as the broader structure continues to be rangebound since 28th August.
“We are not in the middle of a global slowdown," the ace investor said.
Liquidity has flowed to a few stocks which have shown relatively better earnings, and over the long-term experts feel that stock prices will mimic earnings growth.
The index formed a Bearish Belt Hold kind of pattern on the daily charts while a bearish candle on the weekly charts for the second consecutive week in a row.
Considering uncertainty of trade war and weak domestic economic data, the upside would be capped to 3 to 4 percent in the near term for the Sensex and Nifty.
Metals are under pressure due to US-China trade war issues, says Umesh Mehta of SAMCO Securities
FMCG sector tends to remain under pressure, underperforming benchmark Nifty. Realty index has stood out as among the top 5 gainers in previous pre-election rallies.
During July-December 2018 period, eight companies fell into the mid-cap category from largecap, 13 moved from small-cap category to mid-cap category
High beta stocks have already run-up in the recent past when Nifty rallied from 10,000 mark to 10,980 levels, and any bottom fishing before general elections could result another round of upside bounce for the stocks
The general rule is that when a stock is trading below its 5-year PE, it usually indicates sluggish movement in price, which is further linked to earnings potential
The distinct variance in large and small cap stocks has its beginning in policy changes, which ended up hurting the segment it was trying to protect.
India’s answer to Facebook, Apple, Amazon, Netflix and Google is its own set of top performers.
The broad market is under a phase of consolidation, and the extent of this consolidation will depend on global development like trade war and stability in the bond yield.
Asset managers do not expect the underlined stocks returning to their highs, even if the Nifty regained its peak
A sustained trade below 10,540 can extend the weakness and drag the index lower to levels of 10,320-10,200. However, a trade above 10,750 i.e. 61.8% Fibonacci retracement level can resume the uptrend taking it to levels of 10,835-10,900.
Investors are advised to stay with quality stocks and avoid leverage play at current levels especially when there is lingering concerns of growth and valuations have already ballooned to levels which most experts might call it stretched if earnings growth failed to pick up.
The broader market outperformed benchmark indices in the last 12 months, but largecaps are still better bets, explains Shah.
Despite this phenomenal gains in midcap and smallcap indices, there were some stocks that almost destroyed investors’ wealth due to a variety of reasons. A look at such stocks in both the segments, which lost the most in a year.
Losses in index heavyweights, weak global cues and concerns on poor monsoon forecast may have dragged the indices.
The broader markets outperformed benchmarks but the gap between advances and declines narrowed as the day progressed.
Investors remained sideways due to lack of global and domestic cues. D-Mart hogged the limelight, rising more than 114 percent on listing day.
The broader markets underperformed benchmarks, with Nifty Midcap and Smallcap indices falling over 1.5 percent. About three shares declined for every share rising on the exchange.
The market breadth also turned negative as about 1619 shares declined against 1094 advancing shares on the Bombay Stock Exchange.
Petrochemical major Reliance Industries was the biggest gainer and also the largest contributor to Sensex & Nifty gains. The stock jumped 11 percent to Rs 1,207.65, the highest closing level since May 29, 2008, especially after Mukesh Ambani, Chairman and Managing Director announced Reliance Jio's new tariff plans.