Market watchers say the trend of HFTs getting more active in the cash market could be driven by two factors. One, mid and small caps have outperformed large caps by a huge margin. Two, competition appears to be heating up in the equity futures and options segment
Rahul Shah discusses the performance of the auto sector and its ancillary pack. He mentions that the demand for the entire auto sector is coming back and that the stocks in this sector are undervalued. Additionally, he comments on the positive impact of stable crude prices on the tyre sector. Regarding Kotak Mahindra Bank, he states that the numbers were in line with expectations and further clarity is needed on the challenges related to deposits.
Sandip Sabharwal acknowledges the reality of the consumption slowdown and believes that it will likely bottom out when inflation stabilizes and a pickup occurs. However, he cautions that next year may not be as good as expected, citing disappointing results from largecap technology companies, insurance companies, HDFC Bank, and IndusInd Bank. When asked about buying HDFC Bank, Sabharwal advises caution for those already heavily invested in the stock and suggests considering other stocks.
The correction which was essentially started with a large cap segment has moved into mid-cap stock. It is not the first time this correction has taken place and a similar trend is visible in the past also. In such times it would be better to select stocks where analysts are bullish. ET screener powered by Refinitiv’s Stock Report Plus lists down quality stocks with high upside potential over the next 12 months, having an average recommendation rating of “buy” or "strong buy". This predefined screener is only available to ET Prime users.
Ashish Gupta, CIO, Axis Mutual Fund, says stronger economic growth prospects and an improved earnings outlook are expected to augur well for equities in 2024.