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stock market strategy: Be slightly cautious and take some money off the table: Varun Lohchab

Market experts suggest that the current earnings season in India has been lacklustre, neither a big hit nor a miss. While largecaps do better when inflation is high, midcaps and smallcaps might do better this quarter on account of easing commodity inflation pressure. However, the overall upside in the market looks capped for the rest of the year, and it may be time to reduce equity exposure. Consumer discretionary, capital goods, and some autos and cement stocks are starting to look expensive and overbought. ....

Varun Lohchab , Institutional Research , Head Institutional Research , Might Also Like ,

India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities


India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities
Posted On:
Mr. Varun Lohchab, Head Institutional Research, HDFC securities
Q3FY21 was another strong quarter, beating expectations across most sectors, led by margin surprises and even slight beat on revenues. Sales continue to rebound at a faster pace than costs post the lockdown, resulting in earnings beat. Key highlights of the quarter: (1) Q3 margins beat estimates across multiple sectors such as Cement, IT, Chemicals, Paints, Durables due to (a) cost efficiencies leading to lower SG&As (A&P, travel expenses, etc.), (b) improved pricing power in the wake of lower competition; (2) Festive season and unlock led sharp demand rebound; (3) larger companies gained market share; (4) collection trends improved for lenders; (5) commodity costs rising sharply helped oil and metals sectors while gross margin pressures were visible in autos/durables etc. ....

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