The Indian stock market is currently in a consolidation phase after hitting record highs on the Sensex. Some correction was seen after Moody's India outlook downgrade, but buying at lower levels on the hopes of recovery provided support.The 12 percent rally since September 20 after the corporate tax rate cut was largely broadbased as nearly 70 percent on the Nifty50 stocks rallied 6-38 percent. The broader market also followed suit, with the BSE Midcap index adding over 11 percent in the same period.As a result, many of these aforementioned stocks are now trading at premium valuations.Close Hence, experts expect some correction in the near to short-term, adding that sharp correction is unlikely unless global headwinds spoil the party. They further added that the long-term perspective of the market still remains positive. related news Brokerages bullish on Hindalco, expect 22-30% return after Q2 Chart of the Day | Survey shows global fund managers are … [Read more...] about Time to buy mid & smallcaps? Brokerages initiate buy calls on 10 stocks in November
Financing budget deficit
The industrial production contracted for the second consecutive month, shrinking by 4.3 percent in September with weakness across sectors. In fact, it hit the lowest level of almost eight years.It was much weaker than a poll of analysts conducted by CNBC-TV18 which was pegged at negative 1.9 percent and contraction of 1.4 percent in August.The growth in the mining segment fell to a multi-year low of (-8.5 percent against 0.1 percent MoM). In sync with the slowdown in the economy, manufacturing IIP also contracted by (-3.9 percent against -1.2 percent MoM) led by large sectors.Close From the use-based classification side, capital goods, consumer durables, infrastructure and construction goods, and primary goods led the slowdown, contracting by -20.7 percent (against -21 percent MoM), -9.9 percent (against -9.1 percent MoM), -6.4 percent, and -5.1 percent (against 1.1 percent MoM), respectively. related news With infra in focus, this smallcap stock could double your investment … [Read more...] about Another 50bps repo rate cut likely by March 2020
India's financial sector continued to be troubled in the second quarter that saw loan growth drop to demonetisation lows of 6 percent, global brokerage firm Credit Suisse has said in a report.Non-banking financial companies (NBFCs) saw a 36 percent year-on-year (YoY) fall in disbursements in the September quarter of the financial year 2020, while the bank lending fell to 8 percent, Credit Suisse said.The report shows that the fall in bank credit was driven by both public and private sector banks.Close "Even private banks’ loan growth has dropped to 14 percent from 22 percent a year ago. PSU loan growth is down to 5 percent YoY from 8 percent in Q1 despite the large recapitalisation," said Credit Suisse. related news Another 50bps repo rate cut likely by March 2020 With infra in focus, this smallcap stock could double your investment in just 1 year Economic data disappoints: Did you make a mistake in investing when Nifty50 hit 12K? Growth for NBFCs and housing finance … [Read more...] about Loan growth drops to demonetisation lows; India’s financial sector battles pressure
There is a big divergence between how the stock market is and the economy is faring. One seems to be hitting all-time highs while the other is hitting lower levels with each passing month.In this ease, growth slowdown has deepened as IIP performance for the second consecutive month points to a deep slump in economic activity. Industrial production data contracted for the second month in a row to 4.3 percent in September, its lowest level in almost 8 years.In terms of markets – the S&P BSE Sensex, which has risen over 11 percent so far in the year 2019, hit a fresh record high of 40,749 on November 8, while the Nifty50 also reclaimed 12,000 levels in the week gone by.Close Equity markets are inching towards record high, but the economy seems to be struggling, which puts investors’ in doubt about investing at record highs. We spoke to experts to help us understand the dichotomy and if investors did the right thing investing in markets at record highs. related … [Read more...] about Economic data disappoints: Did you make a mistake in investing when Nifty50 hit 12K?
Share prices of Hindalco Industries fell more than 2 percent intraday on November 13 after the company reported a mixed set of earnings for the September quarter. Brokerages, however, remain bullish on the stock, citing potential of Aleris and Novelis to drive earnings.The stock was quoting at Rs 197.45, down Rs 2.95, or 1.47 percent, on the BSE at 1300 hours, but it has gained 12 percent in the last three months.Maintaining outperform call on the stock with a target of Rs 260, implying 30 percent potential upside from current levels, Credit Suisse said the company's EBITDA in Q2 was largely in-line. The aluminium business EBITDA was 11 percent above its estimates, though copper business profitability was hit by lower byproduct realisations and lower volumes, it said.Close In the second half of FY20, the company expects no disruptions and costs for aluminium business to be flat to slightly down. Synergies between Aleris and Novelis could remain unchanged at $150 million, the … [Read more...] about Brokerages bullish on Hindalco, expect 22-30% return after Q2