PSU STOCKS TO BUY
Sometimes skepticism should not be first port of investing: 4 largecap PSU stocks from different sectors with upside potential of up to 29%
While a part of it is due to valuations, another part is due to doubts about whether the government will continue to focus on making the PSU a set of better run companies. If one looks at the announcements which have come in the last four weeks, there is a high probability of that happening.
Traders’ Corner: An agro commodity stock for possible 7% long trade; multiproduct bet for 6% swing trade
More sectors are joining the bullish movement of broader markets
Auto stocks: Time for some cool down and also an opportunity? 6 auto stocks with upside potential of upto 28%
It is the sector which has led the rally which the market has witnessed in the last 14 months and rightly so. If one looks at the history, the rallies which are led by the transportation and auto sector are more durable as sales of LCV and certain other auto segments is an indication of the economic situation on the ground. But there is another fact, which is that with a mad rush for stocks a number of them have seen sharp run with valuations moving upward sharply. There is no doubt that the Indian auto sector is going through a transformation and Indian companies are adjusting to it very well. So there is a situation, while the fundamentals are good and improving, valuations have seen a run up. So, there is a likelihood that we might see some cooling off, but that would bring an opportunity for investors who have missed the bus.
Be cautious in power stocks; take some money off PSU banks: Nischal Maheshwari
There has been over-exuberance in the power sector. Whether it is the equipment, the supplying company, whether it is the generation guys, all have done well in the last year. So, Centrum Broking's Nischal Maheshwari recommends caution on the whole sector per se and says one should be very stock-specific.
Better to own a set of stocks from the digital ecosystem rather than betting on one stock? 15 stocks with upside potential of upto 48%
Few day’s back there was an issue with the telecom provider and the services stopped for some time. Now which would be the companies which got impacted the most, the telecom service provider, the answer is no. As a customer one would not get any reduction in the monthly billing because services were down for some time. The companies which may have got impacted would be a platform company on which one orders food, such as a swiggy or zomato. The reason, in the peak time of demand, a customer is not able to order food online due to internet service being down, that demand will not come back when the internet is back. But the other platform company which sells insurance was also not impacted. The reason is, if one was planning to buy an insurance policy and there is no internet, the demand will get postponed not get extinguished. The digital ecosystem is making things simple but it is yet complicated when it comes to investing.
TRADERS’ CORNER: Two AA, one AMC stock and auto ancillary stock breaking barriers for 6% short term momentum trade
Select momentum stocks are getting back with mojo
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TRADERS’ CORNER: A private bank and the holding company getting ready for 4 to 6% upmove
Momentum coming back to select stock from different sectors.
TRADERS’ CORNER: A pipe makers getting ready for 6% upmove and a agrochemical maker break resistance for 7% rise
Momentum stock are getting back their mojo
Here's why Rohit Srivastava is bullish on fertilizer stocks
When we actually look at the Strike Valuation Charts that we have on our platform, it shows the stock at minus two standard deviations, so that is an extreme in terms of the long-term valuation graph and when you are at that kind of level, definitely at some point of time interest had to get generated and you are starting to see that, now that is only one item and slowly you are seeing the momentum build up in the other private banks as well.
Neither PSU, nor fully private: 7 mid and small cap banks which are hybrid model in many ways with an upside potential of up to 41 %
Banking, a sector where in the last two years winds have blown into as many directions as one could have imagined. Normalization of valuation in large private sector banks, a clean up in the PSU space. Then there is a third set of banks, where probably all these things happened. Right from tech upgrade, clean up of balance sheet, expansion of network and partial upgrade of valuation. In the last few days, there has been a debate about PSU and private banks. The third set of banks is once again not finding much mention on the street. But the fact is that over the last few years, they have been improving their performance, but because they are not majorly in the eyes of either policy makers or the street, they tend to get less attention. The reason for the improvement is a simple one, when RBI makes a change in law, it applies equally to all, whether it is HDFC banks or SBI or a bank which is neither private nor public and are some sort of hybrid. So, these lesser talked ones are a set which come with their own shortcoming and strength.
Minister & Policy Continuity: Will it lead to re-rating getting sustained ? 7 stocks of railway’s ecosystem.
While it became clear on the day of the election result only that the same government is going to continue. Some doubts were raised as to whether there would be a shift in policy focus. A part of the answer has come in the form of portfolio allocation. Some of the key sectors which mattered to the street because they had seen a re-rating and valuations are high, the continuation with the same minister is an indication that government is clearly focussed on continuation not only with a policy focus but it also does not want to waste time in getting a new minister and spending time in him/ her understanding the core work. Now this should bring relief to some companies as their projected plans and workflow will continue. Which means that expected growth which the market has put in its estimates of earning has a high probability of continuing.
Will short-term narrative against PSU banks bring back mojo to private sector banks: 5 banks with an upside potential of up to 24%
One of the sectors where the election results hit hard was the PSU banking space. Two reasons, the stocks had done well in the last one year and had been sitting on big gains, so there is bound to be some nervous selling. Second, they have been seen as following a certain discipline and it is being assumed that because it is a coalition government than probably some amount of laziness might creep in. Well, only time will tell whether it creeps it or not. The hard fact is that in the short term a tactical trade might emerge in banking space, which is incremental money which comes into the banking sector, flows into private sector banks as compared to PSU banks stocks. Another reason why this could happen, over the last three years these private sector banks have under performed on a relative basis. Although they are still heavily owned by institutional investors, the ones who have not sold in the last three years are unlikely to be in a hurry to sell even now. So, for a short term tactical trade, it would be worthwhile to have them on your watchlist.
Here’s what India’s top money managers are buying post elections
Stock pickers at ICICI Prudential Asset Management Co. and HDFC Asset Management Co. are turning wary of small-caps and stocks that look overheated, such as industrials, defense and state-run companies. Nippon Life India Asset Management Ltd. is leaning toward larger companies that are trading at attractive valuations.
PSU, defence, rail, and bank stocks surge up to 13% as election shock wears off
PSU stocks such as BHEL and Mazagon Dock Shipbuilders witnessed gains of up to 13% on Thursday as investors renewed their support for state-owned companies, recognizing their long-term growth potential.
Stock Radar: Canara Bank a safe bet to beat election result volatility; scrip hits fresh 52-week high in June: Shilpa Rout
A decisive close above 120 levels is likely to open room for the stock to hit fresh 52-week highs up to 135-140 levels in the next few weeks, suggest experts. The stock has remained flat in the last three months but witnessed strong price action on Monday in intraday trade. The stock closed at Rs 118 on May 31, 2024.
If exit polls hold true, these stocks are set to surge under Modi 3.0
Modi stocks are companies or sectors that have benefited directly from government policies and initiatives under PM Narendra Modi, making them attractive to investors looking to capitalize on government-driven growth. CLSA has identified 54 such companies, perceived as direct beneficiaries, half of which are PSUs.
Election stocks to buy: Over 50 ideas for investors betting their house on Modi's victory
Driven by significant short-covering by Foreign Institutional Investors (FIIs), the Nifty surged approximately 3%, while the Sensex soared by a staggering 2,778 points on Monday morning, following the unexpected exit poll projections of a landslide victory for the NDA. The "Aayega To Modi" slogan became an investing strategy as traders enthusiastically bought Prime Minister Narendra Modi's favored Public Sector Undertakings (PSUs) in entirety.
Power stocks: Both PSUs and pvt ones got re-rated. Ready for another round in Modi 3.0? 6 stocks with upside potential of up to 37%
The summer heat leads to high power consumption is a well known fact. What has been the difference in the headlines this year and last two or three years? The news about massive power cuts and the possibility of power plants running out of coal is missing. The news which is dominating is that power demand is high and is being met. This change is the result of many things, right from optimism at one point of time to absolute despair at another. Finally policy push and discipline and integrated approach toward solving the issue of the sector, whether it for thermal, solar, wind or hydro. This led to a certain level of re-rating in Modi 2.0 which is likely to get pace in Modi 3.0. One thing which goes unnoticed is the fact that the power sector moving out of the trouble not only means good news for power companies but also the banks, because after metal, power companies topped the list of NPA of the banks.
First among equals: 5 PSU stocks which have benefited the most due to government policy push, spending & may continue their journey
Right from perennial under-performers like oil marketing and refining companies to PSU banks. Literally every stock which has the tag of “PSU” stock has seen a re-rating in the last two years. Now that the exit polls are predicting what the street has been looking for, that is continuity in the policy making framework, there is a high probability that there will be another round of re-rating of PSU stocks. So, continued policy and continued re-rating. Like the earlier re-rating, this time also, some sectors and stocks in the PSU space will outperform others. A company which is going to be providing finance for the expansion of the solar energy network which is the next focus area of the government. The overall demand runway for some of the sectors is longer. This essentially means that while every PSU is likely to see a push, there are a select few which are likely to see more tailwinds of business growth and valuation expansion.
PSU bank stocks: 10 multibaggers in 5 years of Modi government
PSU bank stocks have soared during Modi's second term, with Indian Overseas Bank leading at 472% returns. Despite this, they trade at a discount, making them potential outperformers. CLSA identifies SBI, Canara Bank, and Bank of Baroda as Modi stocks poised for growth.
What are Modi stocks and should you buy them before election results? Here's the full list
Given the sheer impact that the govt's policies have had on several sectors, investors have begun to categorise stocks that are direct policy plays into a new basket called Modi stocks. These stocks are related to capex and infrastructure-linked sectors, PSUs, or stocks of some corporate houses.
RVNL shares rally over 1,000% in 2 years. Should investors book profits or buy the dip?
RVNL Share Price: RVNL shares have surged over 1,000% in 2 years driven by strong order inflows and execution. Investors are debating whether to book profits or buy the dip.
Defence stocks: Long runway, hedge a bit to avoid narrative-based decisions; 8 PSU & Pvt sector stocks, 4 with upside potential of upto 44%
In an election season, there are bound to be times when one or the other narrative may make one question about whether one should sell the stocks. The underlying reason would be fear of losing the gains on which one is sitting. Especially when it comes to sectors like defence, railways and others which have seen a strong re-rating and siting with big gains and already there has been skepticism about their stock price moving ahead of time. Now let's look at the issue in two ways, first is whether the fundamentals of the sector are on a strong foot and business is fine or not. Second, how to hedge the exposure so that one is not forced to sell due to narrative, because the fact is that a continuation in policy push means that the companies have just started their journey. While defence PSUs are well known, there are other private sector players, whose lifeline is dependent on defence expenditure and in the last few years they have also done well, both on the street and in terms of real business. So, it is better that one should hedge and stay with them and not get jittery because of one or the other narrative which will keep hitting the street till 4th June.
Will finally all the hard work yield results in Modi 3.0? 7 fertilizer stocks with 4 having ‘buy’ reco and upside upside potential of up to 22%
Few months back when it was announced that the fertilizer subsidy bill was seen as lower than expected, the street reacted negatively. The assumption is that if the fertilizer subsidy is going to come down then it is bad for the sector. Now there is another way to look at it, a government which has been ensuring that agriculture gets the right amount of attention and doing the various policy pushes, then why is the overall projected subsidy bill down? Probably, it may be because the government is expecting that policy actions which it has taken over the years will yield results and some of the other non-financial efforts which it will take in the sector will help reduce the bill without having an adverse effect on any stakeholders. Now unlike other sectors like railways where putting more money or making few policy changes has helped the sector, fertilizer is a more complex sector and is bound to take more time for getting the house in order. But then who says that transition for good is painless.
Infrastructure stocks: Stay bullish, hedge to participate in next round of re-rating: 6 infra stock with an upside potential of up to 39%
Among the sectors which have seen a strong re-rating in the last five years, probably infrastructure is amongst the top ones. Like many other sectors here also the re-rating has been largely due to policy push and government spending. If one looks at the performance of the companies in the last five years, there has been clearly strong growth across the board. So, policy continuity becomes critical for this sector and the stocks. The
TRADERS’ CORNER: IT stock to rise 5%; graphite electrode manufacturer aims for 6% gain
Nifty opened weak but crawled into the positive territory and stayed there for the rest of the session.
PSU Banks stocks: Stay bullish, hedge a bit to avoid narrative induced selling; top 7 PSU banks with upside potential of up to 36 %
While every sector has witnessed a re-rating in the last couple of years. The re-rating can be due to two reasons. whether headwinds have gone away because of government policy push and clean up or the sector has recovered due cyclical reasons. In the case of PSU banks,which have seen strong re-rating in the last one year, there is a mix of both reasons. The government cleaned up and strengthened the regulatory system. Also that overall economic growth has seen a sharp recovery which has helped in credit off take. Now comes the question that after this rally, should one sell, should one hold, should one increase the exposure. The answer lies in hedging for the banks you own and just avoid listening to noise which will remain high till election results are announced.
PSU railway stocks rally up to 8%. What’s the good news?
Shares of railway PSU stocks RVNL and IRFC surged on Tuesday, with RVNL jumping 8% to Rs 322 and IRFC rising 5% to Rs 181 on the BSE. This rally was triggered by the Q4 profit growth reported by these companies. Additionally, IRCON International shares soared 8% to a new high of Rs 296 ahead of its Q4 results, scheduled for release today.
TRADERS’ CORNER: PSU biggie set on an 8% run; engineering stock shows concrete signs of posting 6% gain
In the special trading session on Saturday, the Nifty started positive and largely remained in the zone.
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