MARKET CONSOLIDATION
Consolidation push to continue as key raw material gets scarce: 11 small cap cement stocks which fit the bill and may see some action
In less than a month, two cement majors clearly showed their intent. The intent is to grow through an inorganic route. One by complete acquisition, the other by taking a large stake in the company. Another common thing, both of them are focussed on the southern part of India, where the cement companies have a history of being under pressure. So why are they looking toward southern India? The answer lies in something else. It is one of the key raw materials that have become scarce and that is what is leading to a situation where big players clearly know that if they have to grow their capacities they have to pick on companies which have access to that critical raw material. This aggressive consolidation is likely to continue and it is the smaller players which are likely to be targeted.
Dhiraj Agarwal on the next big trigger for equity markets
At least for a couple of months, China pulled in a large amount of inflows by the global investors. I have not seen the most recent data, but Feb-March they pulled in about $40 million. Something like that happens, it obviously impacts the amount of flow, which could happen in India. So, on the FPI flow, it is just a toss-up. I mean, it is very difficult to predict, honestly.
Expect one more rally in PSU, railways, defence stocks before Budget: Ajay Bagga
But few of the sectoral leaders can be looked at as well as what is happening right now is that smaller players are being bid up in anticipation that the biggies will be gobbling up the smaller players to meet their capacity expansion buildouts that they have announced.
Residential real estate at a 15-yr high; commercial may see best ever year: Anuj Puri
Clearly within the residential, we are seeing luxury doing exceptionally well, affordable unfortunately not doing as well and there is not that much supply that is coming in. But cities like MMR, Mumbai, Bangalore, NCR really leading the pack.
Sentiment is changing, FIIs could push market rally further, says Chandan Taparia of Motilal Oswal
FIIs covering short positions in the Indian market may drive a potential rally, supported by DIIs and SIP. Amidst profit booking in FMCG stocks, focusing on rural demand and monsoon impact could offer buying opportunities. Private banks and financial companies show promising trends, while Nifty Auto and telecom sectors present favorable trading prospects.
2 top stock recommendations from CA Rudramurthy BV
So, you have to be in the right sector and yes, there are lot of good stocks in these sectors which I can give as input and I am very clear this market is a buy on every dip, no shorting whatsoever but however I will also tell you managing leverage, managing your quantity and being in the right stock and sectors is very-very important because the trigger should not wash you out of the market. Being in the game is very important to win the game.
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Buy companies with strong fundamentals, reasonable valuations in this stock-pickers market: Anshul Saigal
Many of these stocks have rallied multi-fold. In capital goods, I know of companies that I hold, which are up like five-six times in the last one odd year. Now, to say that they still have a lot of steam left and most of the upsides are ahead of us, I do not think that would be a prudent way to approach this space.
Private banks further consolidate lending market share
These banks including the banking sector leaders such as HDFC Bank and ICICI Bank account for a majority share in service sector credit at 51% in FY24. In retail credit, public and private sector banks account for equal share at 49% each.
F&O Talk| Expect consolidation breakout in Nifty above 23,500, buy on dips: Sudeep Shah of SBI Securities
The post-election rally has taken everyone by surprise and both indices now are currently sustaining well above their short-term moving averages after testing their 200 day moving averages.
Market poised for uptrend with phases of consolidation: Sudip Bandyopadhyay
So, once the tractor volume starts picking up, we will see further upside in M&M. The company has done fantastic early well as far as the SUV business is concerned. They have done well in other smaller segments as well, including farm equipments. But performance in tractors was promising and that will be icing on the cake as and when it happens.
Consolidation will drive cement stocks higher this year: Rakesh Arora
Logically, it makes sense, but the reality is that government is unlikely to do that change anytime soon. A lot of revenues earned from cement GST. Also, there is a feeling that the cement industry may not really pass on the benefit of lower GST to the consumer, so that is also one of the another challenges. So, while logically, it makes sense, meaning I am not really expecting it to happen anytime soon at least not in the next 12 months.
Job creation and social spending to be key focus areas for NDA 3.0: DK Joshi
Now, the other issues like external vulnerability, those markers also look good. Your current account deficit is in the safe zone. You have ample forex reserves. So, in this global environment where there are too many risks lurking around, we do not know when these risks will play out, but we know that they are, whether it is global debt or it is the Middle Eastern conflict or it is Russia-Ukraine war, all of these can become bigger problems, so you need to have buffers.
Nifty to remain in consolidation mode ahead of Budget: Rohit Srivastava
So, I think that sets us up for a potential continued move to the upside. But I do think it can remain. See, till we really significantly surpass say 23,600, we can remain in a consolidation mode ahead of the budget.
Will market get into consolidation mode ahead of Budget? Mahantesh Sabarad answers
I think EPC companies can potentially do well because it is all about the order book that they will start getting in. With the new government formation in, you will see infrastructure activity particularly road building kind of activities start picking up. Alongside, you also have a host of metro projects coming up for completion which requires that last bit of push when it comes to construction activities.
Stock Radar: 100% rally in a year! This auto stock gives a breakout from 10-week consolidation; time to buy?
Bajaj Auto, part of the auto space, doubled investors’ wealth in the last year, hitting a record high in June 2024. Analysts suggest further upside potential with technical indicators supporting the bullish trend.
BlackRock stays bullish on Indian bonds after narrow Modi win
Neeraj Seth, chief investment officer at BlackRock, predicts that India's fiscal consolidation under Modi's leadership will continue. Cooling inflation may lead the Reserve Bank of India to ease later this year, supporting the preference for longer duration bonds like the seven and 10 year ones.
Expect market to consolidate for some time: Vikas Khemani
So, I guess the frothy valuation stocks will come down, corrections will happen. Markets might consolidate for some time and to some extent it is healthy. Also, probably we will have a strong opposition so we will have to see what kind of reforms government is able to carry out in further.
NYSE glitch sparks volatility in dozens of stocks
A glitch at the NYSE caused major swings in Berkshire Hathaway and Barrick Gold shares, leading to trading halts in multiple companies. The issue was resolved, with impacted stocks resuming trading after a technical problem was fixed.
Cement industry in India consolidating, market shares of top companies growing: ICRA
Large cement companies are expanding capacity through organic growth and acquisitions, driven by strong demand. Market share of the top five firms rose to 54% in 2023 and is expected to reach 55% by 2025. Consolidation, especially in eastern and western regions, enhances cost efficiency. ICRA's outlook for the sector remains stable.
Bank Nifty better poised to head higher right now: Rohit Srivastava
A lot of the recent action is due to what we are seeing in global markets as well. So, I am not sure how much of it is solely related to the upcoming elections. However, there is some short-term risk if we close below, say, 22,550, where we are right now.
Park Hotels consolidated EBITDA margin for FY24 was 35% and is going to go up further: Vijay Dewan
Apeejay Surrendra Park Hotels, led by MD Vijay Dewan, reported a consolidated EBITDA margin of 35% for the past year, with plans for further improvement through efficiency measures and hotel upgrades. He says going forward, the EBITDA margins are going to further improve and a significant improvement in PAT in the coming year is expected as well.
What kind of election results would shake up the markets? Seshadri Sen answers
Seshadri Sen discusses the impact of BJP's majority in the upcoming elections on the economy, focusing on manufacturing, infrastructure, and capital goods sectors. sen says the the only negative outcome for the markets is that the BJP falls considerably short of the absolute majority. All other outcomes are largely the same.
After consolidating around current levels, market to deliver healthy returns over 3-5 years: Jitendra Arora
Jitendra Arora of ICICI Prudential discusses market consolidation, challenges in valuations, and investment strategies emphasizing long-term growth over short-term gains. He provides insights on sectors like private banks and real estate for potential investment opportunities. Arora says: "Private bank is one pocket where we find a lot of comfort as a house in terms of the valuations."
Nifty Outlook: Expert predicts consolidation, suggests profit booking & sectoral rotation
Financial expert Osho Krishan discusses the current state of the Nifty index and provides insights into market movements and sectoral trends. He says the Nifty is experiencing a rising channel pattern and suggests that investors consider booking profits around the 23,080 to 23,160 levels. Krishan also emphasizes the importance of trailing stop losses and utilizing dips to accumulate long positions. He predicted sectoral rotation, with IT stocks gaining traction.
Lot of consolidation happening in cement industry at a faster pace: HM Bangur, Shree Cement
In organic expansion the biggest thing is you do not buy whatever is left out. You create something. Number one, it is good for the local area because something new is coming up and somebody has to put the new unit. In European countries this is the way because their capacity need is over, it is only changing hands.
Market in consolidation mode in 22,800-22,200 range: Vinay Rajani
Market consolidates around 22,800-22,200, with 22,150 as strong support. Nifty corrects from all-time high near 22,800, forming triple top. FMCG sector leads, expected to continue, offering potential opportunities for stock selection.
What is causing consolidation every time the market is moving higher? Gurmeet Chadha answers
Chadha notes caution pre-election due to US yields, advises good earnings as hedge. Impressed by Britannia, Tata Consumer, Axis, ICICI banks. Favors ICICI, Axis, HDFC, Kotak for growth potential and asset quality in banking sector.
Some more consolidation likely this week; 4 top buy ideas now: Sanjiv Bhasin
Sanjiv Bhasin advises on market recovery, consumer stock investment, and potential buys such as Rattan Power, Coal India, Coforge, and Bajaj Finserv. He also highlights FII impact and Kotak Bank's analysis. Bhasin says: "We have an accumulate on Kotak Bank and we think this is a very good time as most of the negatives are priced in, the positives will be outweighed but time will have to be given over here."
ETMarkets Smart Talk: We expect FY25 to be a year of consolidation for markets: Chandraprakash Padiyar
Chandraprakash Padiyar expects FY25 as a consolidation year for markets, emphasizing better risk-reward in banking and housing sectors. Valuations in mid-cap space are high, while small-cap offers more stock picking opportunities at reasonable valuations. Padiyar says: "We believe the banking sector along with housing related sectors have better risk-to-rewards in our markets for the foreseeable future."
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