10 consistent performers compounding at over 20% on D-Street
IT largecaps look poised for another dream run
Bitcoin approaching Death Cross in ominous sign
Bharat Forge earns upgrades post Q4 earnings
Now lemme give you a quick glance on the state of the markets.
Dalal Street looked indecisive this morning. Nifty futures on the Singapore Exchange traded flat at 7 am (IST), signalling uncertainty ahead. Stocks in other Asian markets opened mixed. In overnight trade, US equities treaded water near a record ahead of key inflation data. Big tech FAANG stocks led the gains.
Across other asset classes, yields on US Treasury fell to their lowest in more than a month. The dollar index rose 0.148%, while the euro fell 0.13%. And, crude oil resumed its rally to top $70 a barrel in New York
That said, here’s what is making news?
The list of consistent performers on D-Street is out. Out of 850 odd companies with more than Rs 1,000 crore market capitalisation on BSE, only 10 have returned above 10% every year between 2016 and 2020. These included HDFC Bank, Bajaj Finance, Berger Paints, Aarti Industries, Atul, Vinati Organics, Procter & Gamble Health, GMM Pfaudler, Bharat Rasayan and Apollo Tri-Coat Tubes. All these stocks, however, have made compounded returns of over 20% in this period.
Amid Bitcoin’s decline this week, eagle-eyed chart-watchers noticed an ominous-sounding technical breach could be at hand: the coin is approaching a bearish pattern known as a Death Cross. The world’s largest digital currency has slumped, pushing its average price over the last 50 days close to its 200-day moving average. Should the short-term line cross below the long-term one, the coin would reach the forbidding formation. The last time Bitcoin marked a death-cross was in November 2019 — the cryptocurrency was down roughly 5% one month after crossing it.
India’s large-cap technology stocks might be poised for a run-up after keeping to the sidelines in the past five months as technical factors are pointing to renewed strength in them. Analysts said stocks such as TCS, Infosys, HCL Tech, Tech Mahindra and L&T Infotech are on the verge of breakouts. Investors could be tempted to consider bluechip technology stocks as their valuations are cheaper than their midcap counterparts.
The stock of Bharat Forge has gained nearly 8% in the two trading sessions since its quarterly results on Friday morning. Analysts have upgraded the FY22 earnings forecast for the company by 15-20% following strong and sustainable growth in exports and improving prospects of the non-automotive segment. The momentum is expected to continue given the rising demand for Class 8 trucks in the US, which is a gauge for heavy truck demand in that country.
LASTLY,
A report by SES, an institutional investor advisory firm, has alleged that the whole process of preferential allotment in PNB Housing Finance to global PE major Carlyle was ultra vires of law and is against the minority shareholders of the mortgage finance company. It also alleged that the process adopted to give management control to the PE major would lead to a Rs 2,000 crore loss to PNB, one of the largest government-run banks. PNB Housing Finance, however, said the process was done after proper due diligence and will benefit all shareholders.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Shares of Asian Hotels (West) recorded their biggest fall in 15 months after Hyatt Regency Mumbai announced suspension of operations citing a fund crunch.
Shyam Metalics and Energy on Tuesday fixed the price band for its initial public offering at Rs 303-306 per share
Bandhan Bank has received RBI nod to reappoint Chandra Shekhar Ghosh as its MD and CEO for three years, lower than the five-year tenure approved by the company’s board in November last year
The board of Religare Enterprises on Tuesday approved raising Rs 570 crore through preferential issue of 5.41 crore shares at an issue price of Rs 105.25 per share
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay put with us for all the market news through the day. Happy investing
