Even as the earnings season is playing out to script, global macroeconomic factors could linger a while. The US 10-year yield touched 5 percent as the Fed looks to extend its monetary tightening. For India, the bigger worry could be a spike in crude price if the Middle East tension continues to be on the boil
It is a well known fact that equities are fraught with risk. But the word “risk” also needs to be further looked into. In equities the risk is more in the short term, over longer term, it is not very high. Also, when diversified in the manner that exposure is to different segments of an economy, risk of a sharp decline in value comes down. Another way to manage risk is that when valuations are high, move to companies which have strong and large balance sheets and have seen many economic cycles and have survived the slowdowns in the past.
In the September quarter, Texmaco Rail’s consolidated total income rose 64 percent year on year to Rs 810 crore. The smallcap rail component manufacturer has gained 137 percent this year
The correction which Nifty has seen in the last few trading sessions has been led by financials and that too a very specific part of financial sector stocks, private banks. Whether it is upward or southward movement of Nifty, it is largely led by financials. The reason, high ownership of foreign portfolio investors ( FPI ) in the majority of these stocks. The big difference this time has been the fact that while private banks are correcting, PSU banks have been able to sort of outperform and have provided a counter to bears. The big question is will this correction be over before the Q2 earnings season begins?