Increasing FPI inflows into bank stocks hint at optimism over macro recovery
A rally in BFSI names helped Nifty50 climbed 6.5 per cent in May.
Synopsis
Foreign portfolio investors (FPIs) have pumped in $954 million (Rs 7,000 crore) in Indian banking stocks in the second half of May 2021, the highest among all sectors, data from NSDL show.
ET Intelligence Group: A high degree of concentrated bets on the Indian banking sector starting from the second half of May 2021 shows that foreign investors are building a strong case for a macroeconomic recovery in the country.
Foreign portfolio investors (FPIs) have pumped in $954 million (Rs 7,000 crore) in Indian banking stocks in the second half of May 2021, the highest among all sectors, data from NSDL show.
Cement prices stay firm in May despite pandemic
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Synopsis
Analysts are bullish on cement companies following firm prices and a gradual relaxation in lockdown across states. They believe the strategy of focusing on prices instead of volume improvement will pay off in terms of stable or better operating margins before depreciation, and amortization (EBIDTA margins).
ET Intelligence Group: The trend in cement prices has remained resilient despite demand disruption amid local lockdown in various parts of the country. This is because the cement makers continue to prioritise pricing over volume gain. All India average cement price improved by 1.1% sequentially in May to Rs 356 per 50 kg bag. Compared with the year-ago level, it was a tad lower by1.3%.
The Nifty dividend opportunity 50 index, which is composed of high dividend paying stocks, has delivered an annual return of 11.3% compared with 8.9% return of the Nifty 50 based on the total return (including capital gains and dividend) since October 2007, the data from Bloomberg shows.
Lockdowns have a silver lining for FMCG, pharma stocks
Most of the FMCG and pharma stocks have been trailing at premium valuations, not justifying a major upside.
Synopsis
Lockdowns have rekindled bullishness in FMCG and pharma stocks with companies expected to report exceptional sales in the short term. The ET Pharma Index has gained 5.3 per cent in the past one month with a price-to-earnings (PE) multiple of 33.4.
ET INTELLIGENCE GROUP: Stocks of Cipla and Cadila Healthcare hit new highs this week. Both companies are among the leading manufacturers in India of the direly-sought Covid drug Remdesivir.
The stock of Dr Reddys Labs (DRL) has gained 9 per cent in the past one month with the company recently getting approval for importing the Sputnik vaccine. The stock price of Glenmark Pharma, another manufacturer of Remdesivir, is 4 per cent shy of hitting