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 and small caps outperform
Wed, 25 Jun 11:30 am

After opening flat; the Indian indices are trading in negative territory in the morning session led by continuous selling among the index heavy weights. The selling pressure is led by stocks from the Energy and FMCG sectors, while Realty and Consumer durable stocks are trading in the green.

The BSE-Sensex is trading down 40 points and the NSE-Nifty is trading down 10 points. The BSE Mid Cap index is trading up 0.4%, while the BSE Small Cap index is trading up 0.3% today. The rupee is trading at 60.1 to the US dollar.

Investment and NBFC stocks are trading mixed today. While Indiabulls Financial Services is leading the gainers, Religare Enterprises is trading on a weak note. As per a leading business daily, the RBI has announced that non-deposit taking NBFCs (NBFC-ND) can function as a business correspondents for banks. However, banks will need to ensure that the NBFC-ND must not get engaged in the practice of offering savings and remittances only to their own customers and bundling their services along with that of NBFC's customers. This will also make banks address any possible reputational risks arising out of the appointment and functioning of the business correspondents. This move will allow NBFC-NDs to offer limited services of banks in the unbanked areas that is mainly aimed at increasing the financial inclusion.

Auto stocks are trading mixed. While buying activity is high among Bajaj Auto and Ashok Leyland, Maruti Suzuki is trading weak. Despite the slump in Indian auto market which has witnessed almost three bad years it seems to be at the recovering stage. The largest car maker Maruti is expecting that the customers plan to spend on discretionary items like four wheelers. In fact, the company expects buyers to upgrade from its bread-and-butter range of small cars. With this view, Maruti expects to launch 6 new cars in next 1 to 2 years and that too mostly in the bigger categories. Maruti has recently performed well by gaining its lost share in the car market with its 50% market share in FY14. About 80% of the company's customers are in the sub Rs 6 lakh car ranges or lower, it expect more than a million are looking up for an upgrade to higher version. This is visible from the company's double digit share in utility vehicle segment out of the success of the Ertiga. As such Maruti wants to strengthen its presence in the bigger cars segment and is planning to line up couple of new cars in the segment.

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 and small caps outperform". 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.