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Showing posts with the label largecap stocks

In an unusual pattern, India’s stock gauge moves in sync with volatility index for days

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[hfe_template id='11223'] [ad_1] In a rare occurrence, India’s benchmark stock gauge and its volatility index have moved in tandem for seven straight days. To some market watchers, that signals traders are less concerned about further declines in large-cap shares. The NSE Nifty 50 Index has lost 14% from its peak in September as investors grew skeptical of the market’s steep valuations, with corporate earnings and economic growth starting to disappoint. In recent days, the India NSE Volatility Index also slid, on falling demand for options betting on moves in the benchmark equity gauge, which comprises mostly India’s heavyweights. “The lack of hedging signifies expectations of more stability in large-cap names,” said Sonam Srivastava, founder and chief executive officer at Wright Research in Mumbai. She added that bigger stocks may fare better should the market fall further, and that her company last week switched to hedges on mid-cap stocks rather than the Nifty 50. ETM...

Largecap stocks: How to solve for the ‘missing’ middle order?

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[hfe_template id='11223'] [ad_1] I recently asked ChatGPT to name some of the most underrated cricketers of all-time. ETMarkets.com Source: ChatGPT Interestingly, the response it gave had one common thread: all of them were middle-order players. While GPT’s responses may vary based on timing and prompts, one thing seems to be pretty clear: in a world obsessed with flashy openers, flamboyant power hitters and lightning-fast bowlers, the middle-order players often end up not getting the recognition they deserve. Yet, it’s these players who play a pivotal role in helping teams win tournaments. They bring balance to the team with their dependable run-scoring, stellar fielding, and sharp bowling skills. But what does this have to do with investing? Given the equity market volatility in recent months, there seems to be a renewed interest in large cap stocks.At first glance, it looks like large cap investors have a wide variety of options – perhaps too many - with indices such ...

Be selective in all market conditions: 5 largecaps from different sectors with an upside potential of up to 38%

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[hfe_template id='11223'] [ad_1] Synopsis At a time when indices are making new highs, small and mid-cap stocks are moving higher and higher every day, talking about volatility and possibility of corrections is something not many may like. The fact is that Volatility does not give notice before coming so it is better to be prepared for it. Even in the best part of a bull run, corrective phases do come. As an investor, just be prepared for it. How does one prepare for it? One way is by sticking with large cap companies and that too one where there are some tailwinds for the business which will help them do better as compared to others in fundamental ways not just the stock price doing well. Today when bulls are once again controlling every part of the market, there is a probability that when you look at the portfolio value, one might feel that probably your stocks are not performing well. But in such times it is important to understand that investing is not about one day ...

stock ideas: Noise of budget is temporary, focus on business & growth: 4 largecaps from different sectors with an upside potential of up to 42%

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[hfe_template id='11223'] [ad_1] Synopsis It is a matter of a day or two that all the noise of the budget would be over and the market will once again be focussing on what it had been doing for ages, that is earnings of the company and broader macroeconomic picture of the country. Of the two, the macroeconomic picture is the same for every company and for the majority of them it is good. The first is the earnings which are different for each company and that is dependent on the underlying business and how good or not so good the management is about that company. So, focus on them and there are many companies which either after facing a challenge are making a comeback and where the challenge of high valuations has also come down. So it is better to have them on a watchlist. Probably everyone on the regulatory side is worried about higher speculative future and options activity on the street. Warnings have come that we are going to see some more steps to curb it. If the mo...

Simple moat is good enough reason : 5 large cap stocks from different sector with right ratio matrix and upside potential of upto 38%

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[hfe_template id='11223'] [ad_1] Synopsis There are many textbook definitions of the word “ moat”. But what it means in simple terms is that there has to be something in a business and the management which makes it different from others and also helps it grow faster and more importantly on a sustained basis. It is not a very complicated thing, just a look at some basic numbers, a look at what the company management had said 5 years ago, whether it has been achieved or not. For example, in sectors where the debt is normally high because of the nature of business, a company which has been able to grow while keeping debt at a lower level is positive and is surely a moat, while if one goes by strict textbook definition of moat it might not fit it. There are phases, when bulls don't make any distinction between large or mid or small cap stocks they just push everything up. At that time, it might appear that there is no point in making a distinction between these segments ...