SMALLCAP CORRECTION
Tough to sustain GDP growth above 7.5%; time-wise correction in market likely: Neelkanth Mishra
As mutual funds are sitting with Rs 1 lakh crore of cash, whenever there is a 4-5% drop from the peak, there is a spate of buying. So equities as an asset class are not seeing sharp drawdowns and in the short term make it safer to invest in and attract more funds. That is the cycle we are in, says Neelkanth Mishra.
2 top stock recommendations from Rahul Sharma
Now, the way Nifty is heading, we feel that putting a target is anybody's guess. But 24,200, 24,500 is where we are expecting the Nifty to head very fast in the next few trading sessions. So, momentum moves is something that we are looking for.
Expect 15% plus Nifty return; mid and smallcaps can deliver 5-7% higher earnings growth: Samit Vartak
It is always good to have FIIs at the lowest level of ownership. At the peak, we had 24% of the market owned by FIIs. Today, we are close to 16%. So, most of the remainder of investors probably are going to be long-term. They are unlikely to keep on selling more where this ownership is going to go lower, says Samit Vartak.
Good chance to generate a lot of alpha in this stock-pickers market: Samit Vartak
I am sure there will be few winners but those will be extremely handful but the entire segment going up I am not sure if most of them are going to be anywhere close to these kind of valuations when the correction comes in and 80-90% correction is a huge correction, I mean jumping from 90% correction is like 10x returns that you need to generate to just recover the kind of losses.
New bubble? Why are smallcaps and PSU stocks rebounding strongly from June 4 lows? Ashwini Agarwal answers
Ashwini Agarwal says he cannot get himself to agree that the PSU valuations have become quite eye-popping and has room for further upside. But bubbles have their own mind and bubbles can get a lot bigger before they burst. So, there may be a lot of upside.
If you are a good stock picker, you should be able to double your money every three years: Ramesh Damani
Ramesh Damani says he remains bullish and would remain invested. Damani says that even though he is not young anymore, he still feels young. So, he does not want to raise too much cash and remain fully exposed to Indian equities.
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Valuations & earnings will take precedence soon says Feroze Azeez of Anand Rathi Wealth
The market's reaction has been quite volatile due to the exit polls. From a trader's perspective, it's been a seesaw. For investors, it’s important to remember that markets typically fall 10% from the peak twice a year.
231 smallcaps suffer double-digit losses as investors 'sell in May'. Will they come back in June?
231 smallcaps suffer double-digit losses as investors 'sell in May'. Will they come back in June? The stock market cliche of 'sell in May and go away' proved true this year amid general election uncertainties. Concerns over BJP's election performance and significant volatility affected investor sentiments. Benchmark indices like Sensex and Nifty experienced slight declines.
India in one of the best wealth creation and earning growth cycle for next 8-10 years: Vikas Khemani
Of course, if an outcome where this current government is not able to form the government, then I think there will be serious questioning about the pace of the reforms and potential disruption of the growth, all those things, so I think that is the one thing that one has to very clearly keep in mind.
Not booking any profits now; more money coming in which have to be put to work: Mark Mobius
Mark Mobius says not booking any profits because they have more money coming in and they have to put it to work. ans that is not a problem because the markets are very deep now and we can see lots of opportunity, not only in India, but in other parts of the world.
Why Mark Mobius will be looking at largecaps going forward
Mark Mobius discusses the potential of largecaps in India, particularly in the infrastructure and power sectors. He highlights NHPC's entry into hydropower and emphasizes global growth opportunities, while addressing the valuations of public sector entities. Mobius suggests one should keep some cash on the side in the event of a correction where you can buy at much lower prices.
How embracing volatility is the path to wealth creation on Dalal Street
From 1980 to 2023, the Sensex experienced corrections of less than 10% in a year only four times, underscoring the rarity of such events. Intra-year declines of 10-20% are common, with notable corrections of 60% in 2008 and 38% in 2020. Despite these fluctuations, the index yielded positive annual returns three out of four times.
Creating short positions in the market; expect 1,000-4,000 pts correction post election: Aditya Arora
Aditya Arora of Adlytick foresees Nifty correction post-election due to market overvaluation. He says a short-term spike is possible and suggests caution and waiting for trading opportunities. Arora says: "Whatever is the top for the market, from there we see a correction of 1,000 to 4,000 points." He further recommends a Britannia buy for potential outperformance in choppy market conditions.
Investing long-term? Start accumulating stocks which have been hammered 20-40%: Rahul Sharma
Rahul Sharma suggests focusing on largecaps for alpha generation, while considering smallcaps and midcaps at discounted prices. Nifty's positive trend and sector leaders' performance support an optimistic outlook for FY25. Sharma says: "As we have seen in the past, corrections have been bought into and this time also, it does not seem any different."
Time to buy the dip in pockets where correction is driven by valuation: Shreyash Devalkar
Shreyash Devalkar of Axis Mutual Fund discusses market volatility, opportunities in mid/smallcaps, sector focus on earnings, and the long-term trajectory in the power sector, emphasizing caution on asset owner valuations and potential growth in capital goods companies.
ETMarkets Fund Manager Talk: Expect combination of time correction, reshuffle to play out in mid & smallcaps: Tailwind Financial
Market regulators express concern over valuations from a strong bull run, predicting time correction and shift to reasonable valuations. SEBI's action on international ETFs aims to manage currency stability, reflecting a cautious market approach.Rishabh Goel says with the US Fed maintaining three rate cut expectations, expects FII flows to help further drive largecap performance.
Should you buy the dips or wait for further correction? Amit Khurana answers
Amit Khurana discusses market correction trends, preference for bottom-up portfolio allocation, identifying opportunities in small and midcap stocks, backing real estate, alcobev, mid-sized banks, affordable housing, and midcap cement amid corrections. Khurana says: "This market is moving into a zone which is showing signs of correction. Some have played out and some are yet to play out."
In last 10-15 years, it has paid to buy the dips and invest for the long term: Gautam Duggad
Gautam Duggad says: "In any bull market, we will always find some things are getting too expensive and frothy and some things are always available where you can still justify, for example, that the domestic cyclicals like hotels, real estate, some of the consumer discretionary names where the earning support is very strong, are the spaces where money can be made."
About 70 smallcap stocks miss the D-Street FY24 blockbuster list, correct up to 81%
Smallcap stocks faced challenges in FY24, with some experiencing significant losses. The market saw a rally despite these setbacks, driven by retail, foreign, and mutual fund investors, leading to a surge in market capitalization.
Bulk of correction in small, midcaps over; days of IT largecaps are numbered: Nilesh Shah, Envision Capital
Nilesh Shah anticipates largecap IT decline, supports specialised technology services growth. He believes online consumer or the online fintech space are the businesses which are making rapid strides. While acknowledging market froth, advises against tactical allocations. shifting funds from small and midcaps to largecaps Further, Shah emphasizes bottom-up opportunities, energy sector potential, and regulatory risks in the insurance sector.
Market has to consolidate till April to have a pre-election rally in May: Sandip Sabharwal
Sandip Sabharwal discusses ongoing market corrections, potential pre-election rally, and government policies' impact on various sectors. He emphasizes the need for caution in investment decisions amidst market uncertainties and highlights the resilience of certain stock categories. He says the real pain of the market correction has been felt in the smallcaps and to some extent on midcaps. But valuations in that segment are still somewhat higher. I do not think the entire correction should be over as of now.
80% of the correction over; top 5 picks in mid and smallcaps: Sanjiv Bhasin
Sanjiv Bhasin discusses the induced correction in mid and smallcaps, highlighting opportunities in Hindustan Copper and small banks. He predicts a market balance post-correction and emphasizes strategic investments in the current economic climate. He also says, with the triple effect of real estate, gold and stocks, the money flow actually is coming from smaller cities.
Forget buying on every dip; wait for correction to end in a few weeks: Sandip Sabharwal
Sabharwal predicts a durable bottom in the ongoing bull market correction, advises caution in stock investments, and suggests waiting for further corrections for better buying opportunities in the market. Sabharwal says: "My view is that on the midcap side, the correction is not yet over. Even on the largecap side, we could still see some more correction."
Seeking value in this market? Porinju Veliyath on where to look
Porinju Veliyath sees value emerging in small and midcap companies amidst an economic upcycle, anticipating sustained growth opportunities driven by structural changes, government support for manufacturing, and the expansion of the capital market and investing habits. He says at around 25-26 PE, these small and midcaps are definitely expensive. But we cannot talk about the historic PE of 10, 12, and 15 for these companies because their future trajectory has changed significantly.
Mid- & small-caps still at full-to-lofty valuations: Kotak Institutional Equities
"We are not sure if the correction marks a reversal of the market to fundamentals and numbers from sentiment and narratives," said Kotak's analysts including Sanjeev Prasad in a client note.
Hemang Jani on 3 Adani group stocks that could be great election plays
Hemang Jani says there is no need to react in a knee-jerk manner. The correction is providing a great opportunity. advises The market correction presents opportunity for balanced investment in largecaps, midcaps, and smallcaps. Adani, Ambuja, ACC, IDFC First, PSU banks, BEML, Max Health, Apollo Hospitals, Lemon Tree, Indian Hotels are good buys.
We will not jump in to buy all the PSU stocks that have corrected: Sunil Subramaniam
Sunil Subramaniam of Sundaram Mutual advises caution in investing in PSU stocks due to liquidity concerns and fundamental issues. Despite strong smallcap and midcap earnings, it is recommended to wait for a fundamental reset and be selective in the PSU space. The stress test reveals that if there is a sudden shock, a whiplash of some investor pulling out, will you have trouble in selling your most appreciated smallcaps?
Just 7 stocks doing well in the US more justifiable than Indian smallcaps doing so well: Samir Arora
Samir Arora says coming to smallcaps, it does not matter if there is a graceful correction or a sharp correction because broadly the outperformance is unrealistic and not in line with any form of history, provided the cycle is over. In the middle of the cycles, there have been similar outperformance in previous phases also. So, it is basically not an avoid, but one has to scrutinise a lot before buying a smallcap.
A correction was long overdue in small and midcap space: Jonathan Schiessl
Jonathan Schiessl discusses the overdue correction in mid and smallcaps, the regulatory concerns about frothy valuations, the importance of caution when investing in companies facing regulatory issues, and the challenges and opportunities in India's specialty chemical sector, particularly related to the EV story.
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