Benchmark indices snapped the sideways movement, logged over the past two days, and reclaimed crucial psychological levels last seen on March 10 as market participants continued to look at a sharp rebound in the economic activity once Covid-19 restrictions begin to ease. Besides, a rally in global markets as a host of central bank policymakers pledged to keep monetary policy loose despite recent signs of an uptick in inflation pulled investors towards riskier asset classes. Recently, US Federal Reserve officials had reaffirmed a dovish monetary policy stance, assuaging concerns over rising inflation. Now, the European Central Bank policymakers have said that it may be too early to discuss tapering of emergency bond purchases.
Berger Paints (₹679.90) | Why you should book profit in Berger Paints stock
With crude prices rising, margin is likely to come under pressure
Though Indian equity markets witnessed one of the steepest declines in March last year due to Covid-19 related demand slowdown, it has recovered well since then . Paint companies, in particular, have been resilient amid market volatility during this period. . Both Asian Paints and Berger have rallied giving 53 and 75 per cent returns respectively from March lows. . Besides benefit from low crude oil prices last year, release of pent-up demand with economy fully opened up, and festive season gave a boost in the last quarter of 2020. This has reflected in the earnings of paint companies which have been improving in the last two quarters. In its recent December quarter, Berger Paints has reported double-digit volume growth in its mainstay business and decorative paints. It reported a revenue growth of 25 per cent y-o-y and profit growth of 5
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While you continue to like the Kotaks and the
Berger Paints of the world, are you looking at expanding the number of stocks in your portfolio?
Two things are playing out. One, flows into Marcellus have been very strong over the last 12 months. As the money that we are managing is basically moving towards the billion dollar mark, we are adding a few more stocks because there is only so much you can buy in a name and many of the names that we own we are already accounting for a substantial part of the free float and that is a little uncomfortable.