Tag: return

The current market sentiment is uncertain and may provide opportunities in major stocks. Here are five bank stocks that look good on the technical charts for a 10 percent upside in one month. 1. State Bank of India Likely target: Rs 530 Upside potential: 8% The shares of the banking major took support at its 50-day moving average (DMA), located at Rs 479 recently. As long as this support is defended, the positive bias may help resume an upward momentum towards Rs 530, its next major hurdle, according to the daily chart. The Moving Average Convergence Divergence (MACD) has reached near the zero line and if shows a similar reversal like stock price, the direction and leadership may show an aggressive bullish sentiment. Read more

SBI Mutual Fund, India’s largest mutual fund asset manager, has waved the red flag on the country’s stock market. The asset manager, which manages assets worth more than Rs 5 lakh crore, is concerned over the prospects of returns from the Indian equities going ahead, because of the euphoria on display in the primary market and among retail investors. “Primary market activity is flashing warning signs. Such level of activity is normally associated with euphoria (in the market),” Dinesh Balachandran, fund manager at SBI Mutual Fund said at the launch of the SBI Balanced Advantage Fund yesterday(11th August 2021). Read more

Indian benchmark indices continued to scale new record highs today(4th August 2021) as in-line earnings and positive global cues lifted the morale. Bank and financial services stocks were in demand while others saw selling. Broader market indices ended in the red after traders booked profits. However, the volatility indicator cooled off. The return of FIIs also supported the market. The 30-share pack Sensex climbed 546.41 points or 1.02 percent to close at 54,369.77. Its broader peer NSE Nifty advanced 128.05 points or 0.79 percent to 16,258.80. Both indices closed at record high levels. However, overall investor wealth came down by Rs 49,576 crore as the total market cap of BSE-listed companies stood at 239.55 lakh crore. Read more

According to billionaire investor Rakesh Jhunjhunwala, annual equity returns from Indian stocks will be about five percentage points on top of the economic growth of 7%-10% in the coming years. Jhunjhunwala is counting on the nation’s potential for long-term growth and political stability to fuel further gains in the $3 trillion stock market that’s already been hitting record after record this year. His bets range from banks and health insurance -which he says will be boosted by the pandemic - to a broad consumer rally on the back of Prime Minister Narendra Modi’s policies to give every Indian home and access to clean water. “We are in the middle of a bull phase which will last for a very, very long time,” Jhunjhunwala said in an interview earlier this month. “India will also look lucrative when the U.S. Federal Reserve begins to withdraw stimulus, but there will be short-term disruptions.”

Last year Indian companies' market capitalization has grown at the fastest pace among major economies in spite of contraction in GDP, according to economists from SBI. Further, retail investors have shown higher interest in markets and their numbers have increased by 1.42 crore in FY21 and another 44 lakh in April and May, they said in a note, wondering if this will be a lasting behavioral change or is transitory. The economists at SBI attributed the growth in equity markets to lower returns on other financial instruments amid a low rates regime, increase in global liquidity, and even a tendency to spend more time at home because of mobility restrictions which led many to trade more. The 30-share benchmark index BSE has rallied from 28,000 points in early April 2020, to over 52,000 points at present. Read more

Tata Consultancy Services (TCS) has navigated the pandemic very well, and has earned tremendous goodwill from customers, which enhanced the firm’s standing in the market, N Chandrasekaran, chairman, said in his virtual address of the 26th Annual General Meeting on Thursday. He said, if an investor had invested in TCS IPO investor’s wealth would have increased by 3000% in 17 years. One share of TCS at a price of Rs 850 during the IPO in 2004 would be worth Rs 28000 today, giving shareholders a 3000% return on their investment. On the performance of the company, he said barring the first quarter of the fiscal year, the company delivered a sharp recovery. For FY21, TCS has returned Rs 33,873 crore in dividends and buyback to shareholders, resulting in a payout of 95 per cent of free cash flow.Chandrasekaran also recounted the contribution of FC Kohli, who led TCS during the initial 27 years, navigating multiple technology waves investing continuously in people and in research Read more

Equity markets have so far had a turbulent year with indices oscillating between gains and losses. On a year-to-date basis, the benchmark S&P BSE Sensex has advanced merely 2 percent while the Nifty50 index has added 4.6 percent. Buying in the broader markets has been relatively better with the S&P BSE500 index climbing around 8 percent during the period. Individually though, certain stocks have outperformed the indices by a huge margin on the back of positive news flow. Adani Total Gas, for instance, has soared 207 percent YTD. It recently became the fourth Adani Group company to enter the elite club of Rs 1 trillion market capitalisation after posting a stellar December quarter (Q3FY21) earnings show. During the said period, it saw the highest-ever financial performance with robust physical infrastructure growth despite the ongoing Covid-19 pandemic. That apart, stocks of Hindustan Copper, HEG, and Adani Enterprises have zoomed between 142 percent and 153 percent. Read more

The market which is already trading at record highs has more legs than earlier, believe many analysts. They believe the market will run up ahead of, and in anticipation of, and ensuing economic recovery. The following few stocks may get the best of the rally in the market in the next year, according to many analysts: 1. Sobha | Target: Rs 640 | Upside: 45%: Sobha is a better-placed company in the realty space backed by its strong brand, better product realizations, back‐ward integration of processes including in‐house design, architecture, mechanical, electrical, plumbing and engineering, superior execution capabilities and diversifications from Bangalore market to a pan India player. Also, the company is likely to be a prime beneficiary of consolidation in the industry. Read more