Technical outlook for the Nifty 50
Stocks
B Krishnakumar

Technical outlook for the Nifty 50

In the previous update on the Nifty 50 outlook, we had flagged concerns about the overbought breadth in the higher time frame and that the breach of 17,300 would trigger a deeper correction with heightened volatility. This scenario is currently unfolding in the Nifty 50 index.

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Is it time to invest in US equities?
Markets
Aarati Krishnan

Is it time to invest in US equities?

US stock indices have started a fresh bout of declines. This has led smart investors to ask if they should be bargain-hunting US equities at this juncture. The answer depends on where the US economy and earnings are heading.

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US recession and IT sector slowdown – impact on our stock pick
Stocks
Vidya Bala

US recession and IT sector slowdown – impact on our stock pick

Will the Indian IT sector slowdown as a result of a looming recession in the US? This is the question that many of you have asked us on the back of a sharp 32% correction in the Nifty IT index from its peak in January 2022. The next question is whether our ‘buy’ on one of the IT stocks is valid now and whether the same can be accumulated. We will try to answer these questions here.

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Consumer durables: On the comeback trail
Stocks
N V Chandrachoodamani

Consumer durables: On the comeback trail

Consumer durables is a category that stands between staples and lifestyle goods. This category has been hit on one hand by Covid-led lockdowns, and on the other by inflation eating into margins and hurting demand. The category has seen a more severe impact as it is neither buoyed by the non-discretionary nature of staples nor by the quick demand rebound that lifestyle consumption tends to see.

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Technical outlook: Where does the Nifty 50 stand?
Markets
B Krishnakumar

Technical outlook: Where does the Nifty 50 stand?

In the previous update on the Nifty 50 index, we had mentioned that the Nifty 50 index could retest or drop below the March low of 15,700. Since then, this scenario played out; the Nifty 50 dropped to a low of 15,183 on June 17 and has since been on a recovery path. Many of you have asked us where the Nifty 50 stands now. Here’s the view as the charts show.

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How I handle bear markets
General
R Balakrishnan

How I handle bear markets

As per the above table, we are not yet in a bear market, though it would seem to be just round the corner. But what the data shows is that the period taken to recover from the onset of a bear market back to regaining the previous peaks can be as short as three months or as long as 74 months.

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Are we at market capitulation?
Markets
Aarati Krishnan

When the last bull throws in the towel: Are we at market capitulation?

Capitulation marks the end phase that puts a full stop to a bear market and lays the foundation for the next bull phase. 

Capitulation is a phase when the sentiment turns so negative that the bellwether indices, stock prices and stock valuations plunge to levels which fundamental analysts didn’t even imagine! When Warren Buffett asks you to ‘buy when there’s blood on the Street’, it is the capitulation phase he’s referring to.

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FMCG sector
Stocks
N V Chandrachoodamani

FMCG sector: Pressures mount on earnings and valuations

When markets are in a correcting mode, one sector that jumps to mind for its ‘defensive’ qualities is the FMCG sector. With their staple business, non-discretionary spending holds revenues in good stead. But FMCG companies have instead corrected about 20% from their October ’21 peak. Against the Nifty 50, they have been underperformers over the past two years. So, what gives?

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M&A
General
R Balakrishnan

What they don’t tell you about M&A

In an M&A, company A buys out company B, triggering positive and happy noises in the market. Share prices of both companies jump in joy on the announcement. The news then gets digested and analysed.  Shareholders of both companies realise after a bit, that they should have sold out in the first few days after the announcement, rather than swallow stories of ‘synergies’, ‘cost savings’, ‘market leadership’, ‘inorganic growth’ and other jargon that are usually peddled to sell mergers, in company releases and analyst reports. 

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How to ride the rate upcycle
Bonds & Deposits
Aarati Krishnan

How to ride the interest rate upcycle

Indian debt investors have been handed a raw deal in the last three years. Though inflation has been rising and market interest rates edging up, the Reserve Bank of India (RBI) and the Monetary Policy Committee (MPC) were doing their level-best to keep a lid on interest rates, to protect borrowers in a Covid-hit economy. 

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Nifty 50: Will there be a pullback now?
Markets
B Krishnakumar

Nifty 50: Will there be a pullback now?

In our previous Nifty 50 index update, we had built a case for a short-term bounce in the Nifty 50 index that could extend up to 16,800-16,850 range. This price action unfolded in line with expectations and the index moved well past the target zone. The question now is, will this rally continue or is there still a risk of one more leg of downside heading back to the early March lows. 

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Cement Industry
Research Reports
Pavithra Jaivant

Cement Industry: 5 things to know before you choose a stock

India’s cement industry has always been a good proxy for the core economy, with steady volume growth and players enjoying considerable pricing power unlike other commodities. With cement industry leaders such as UltraTech Cement, Ambuja Cements, Dalmia Bharat and Birla Corporation correcting between 10% and 20% in the last 3 months, could there be an opportunity? We take a deep dive into the cement industry to assess its prospects.

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