Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Mid & Small cap indices finding favour
Wed, 29 Apr 01:30 pm

Choppy trade seems to be the order of the day as the indices which were trading significantly in the negative have recovered somewhat are now trading only marginally in the negative. The BSE-Sensex is trading lower by around 19 points whereas S&P BSE Midcap and S&P BSE Smallcap indices are in the positive and higher by 0.4% and 1% respectively. Amongst sectoral indices, healthcare and realty are showing good buying interest.

After closing lower by around 2% yesterday, Godrej Consumer is down yet again today and is amongst the top losers in the BSE 200. The stock is trading lower by around 4%. While the company put up a decent show during the March quarter results, the weakness in the share price perhaps has to do with the fact that the performance was not as good as what the analysts had expected. Of course, there was currency volatility which has impacted the performance. However if a leading daily is to be believed, the 8.3% growth in consolidated revenues during the quarter was worse than expectations. Besides, the worries about a consumption slowdown in the economy combined with fears of a below par monsoon also seem to be taking toll on the stock price.

Amidst the weakness in the broader markets, Tata Steel is one of the few stocks that's defying the trend and is trading positive currently with gains of around 1%. As a matter of fact, as per a leading daily, after having a poor FY15, the stock has turned a corner and is the biggest gainer amongst the Nifty stocks this fiscal. It has gained more than 17% as opposed to more than 2% drop in the Nifty. The buoyancy seems a result of a combination of factors, most important amongst these being the weakness in the Euro and few positive developments in its Indian operations. It should be noted that with majority of the business of the company based out of Europe, the current weakness in the currency is helping the company be more competitive in terms of costs. Besides, with the company getting permission to re-start its iron ore mines in India, its cost competitiveness in domestic operations is also likely to resume. Last but not the least, at less than book value, the company does not seem all that expensive. However, any lack of revival in steel demand and the gains could be short lived we believe.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Mid & Small cap indices finding favour". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.