Jefferies said the rerating in shares of public sector undertakings (PSUs) - the top performers in the past three months - has more legs citing cheaper valuations compared to the Nifty and the government s focus on value maximisation for these companies. SBI, Coal India, and NTPC are its top picks among state-owned companies.
It continues to be painful for both Zee and Paytm. But that is part and parcel of investing. Some things are uncanny because of the incidents, but we think there will be a resolution faster than you thought and as soon as you see the back of some of these large promoters who have misled investors, the Zee stock can be rerated. Paytm faces risk of customer exodus after RBI curbs payments bank.
It usually does not unwind in a matter of days. It takes several months of consolidation before you can actually take out the highs of such a point where such an event has actually happened.
The Nifty PSE (Public Sector Enterprises) index plummeted almost 4% on Monday, its highest single-day decline since January 23, when the index fell 4.3%. The index dropped 2.7% on Friday.
Vora believes owning HDFC Bank would not add significant alpha to his fund in the current value momentum regime. They stay out of HDFC Bank and Kotak Bank until their overall scores improve, focusing on sectors like financials, industrials, energy, and auto for potential growth in the medium to long term.