brief call Is it a beneficial or detrimental improvement? DMart investors are interested in buying back Bajaj Auto

 brief call Is it a beneficial or detrimental improvement? DMart investors are interested in buying back Bajaj Auto

brief call Is it a beneficial or detrimental improvement? DMart investors are interested in buying back Bajaj Auto

Expert investors advise reducing your exposure to small and mid-cap stocks and increasing it to large-cap stocks, which have lower values.

Retailers continue to wager on small- and mid-cap stocks.

"The important question towards the investor is not whether situations are good or bad (if, indeed, they can be characterized on such a scale), but which ones are changing for or against the grain relative to expectations." -Arthur Zickel

When does a constructive correction start to work against the portfolio? Given that the main indices have dropped in two of the last three sessions, some investors are wondering. Expert investors advise reducing your exposure to small and mid-cap stocks and increasing it to large-cap stocks, which have lower values. However, it seems that since they have had to taste blood in the second row equities, retail investors are not in the mood to listen. Furthermore, until there is a significant selloff in mid- and small-cap stocks, this tendency is unlikely to reverse.

Avenue Supermarts (-4%) at Rs 3940

Highlighting a different RKD stock. When the company's third-quarter business report missed analysts' expectations, the shares dropped. HSBC refers to the rate of retail growth as "pedestrian."

Bull Argument: 'Everyday Low Prices' at DMart are still highly popular. The revenue per square foot has been rising since the interruption caused by Covid. The previous quarter, FII raised its shareholding.

Bearish reasoning: declining sales of high-margin clothes and general items. Although valuations are not inexpensive, re-rating doesn't seem inevitable very soon.

(Rs. 6,986.50 + 4.82%) Bajaj Auto

After the corporation said on January 8 that it would contemplate a repurchase, the stock shot up.

Bullish Argument: Over the last several quarters, operational performance has been consistent. Enhancements in the rural market can be the cherry on top. Given that December is a traditionally poor month, it is not appropriate to place too much emphasis on its slow sales.

Argument put up by bears: Over the last year, the stock has doubled. Significantly higher export growth is required to maintain the re-rating. Prospects for international development

2024 is managed.

(Rs 135, -3.3%) Tata Steel

On Wednesday, the stock dropped 3% after a downgrade to "low" by Kotak Institutional Equities, which cited unfavorable risk returns at present values. In the last two months, it has gone up by 20%.

Bullish Argument: As raw material costs rise, backward integration acts as a buffer. By December 2024, the Kalinganagar plant's phase 2 expansion is anticipated to be finished.

Bearish reasoning: Although domestic demand is still high, gains are being constrained by a lack of new capacity. Europe will continue to have a trade imbalance. According to reports, unions are adopting a harsh position on job losses and new investment, while UK properties are on the verge of going out of business.

Hindustan Unilever (up 0.3% to Rs 2606.45)

Five states have sent the business GST tax notifications totaling Rs 447.5 crore.

Bullish Argument: The premium portfolio is doing well, and the firm is enjoying a K-shaped comeback. In the event of an unexpected market selloff, this is a solid defensive wager.

Bear's position: Reforming rural areas takes time. In retaliation, smaller and regional businesses are displacing the bigger firms from the market. Because HUL reduced its set margin, distributors were irate and threatened to cease making sales.

Gas and oil

Sabri Hazarika of Emkay anticipates a neutral showing from RIL in the third quarter, but a sequential drop in the oil major's profitability because of reduced gross margins from marketing and refining as well as inventory losses. The gas industry is anticipated to stay steady.

other

The chief economist of HDFC Bank, Sakshi Gupta, anticipates a downturn in GDP and restrictive monetary policy going forward. According to Axis Bank's Neeraj Gambhir, government spending has not grown as anticipated. Marcellus's Saurabh Mukherjee is worried about the country's sluggish export growth and stagnant private capital spending.