Stock Market Highlights: Indian equity benchmarks Sensex and Nifty50 suffered sharp losses on Monday, extending losses to the fourth trading session in a row.
Mohit Nigam, Head-PMS at Hem Securities, said Dalal Street has been in uptrend for over 18 months.
The market is expected to consolidate for a while at these levels as it awaits fresh triggers for an upmove,” he added.
“The Nifty has formed a bearish candle at the top with divergence seen in RSI, which was suggesting that profit booking at higher levels can be seen, and the index corrected almost 6.5 percent.
“Additionally, the index has given a breakdown below the lower Bollinger band, which suggests a southward journey in the counter.
Siddhartha Khemka, Head-Retail Research at Motilal Oswal Financial Services, believes the overall consolidation in the market is likely to continue as valuations are rich and global cues continuing to cause volatility.
Further data from the US, including minutes of the Fed’s last policy meeting, GDP and initial jobless claims, will be released on Wednesday ahead of Thursday’s Thanksgiving holiday,” he added.
This would be one of the companies which would give you a five percent kind of free cash flow after adjusting for the capex, and accounting standards and other stuff.
Gurmeet Chadha Co-Founder and CEO of Complete Circle Consultants, believes the key trigger for the Bharti Airtel stock was when in August the company did a rights issue.
“The hike in prepaid tariffs announced by Bharti Airtel, and assuming it is followed up by Jio and Vodafone Idea, would add about Rs 8,000-9,000 crore to the EBITDA.
There has been a long period of underperformance relatively as far as Bharti Airtel is concerned, and the enhanced ARPU will give the company a lot of elbow room for the spectrum and the 5G rollout, he said.
So government spending, the consumption demand coming back and private sector capex coming back because of the actions that we are seeing in the interest rates going low plus we are also seeing good amount of interest in real estate etc., volumes are picking up, it is gradually opening up and recovery of the local economy is what we are playing for…
Today’s sell-off was particularly severe, as the sustained downtrend appears to have led to a vicious cycle with falling prices prompting more investors to sell out in panic.
According to top foreign brokerages, the Sensex and Nifty are trading anywhere between 25 and 30 percent one-year forward earnings, which is far ahead of their historic valuations.
Rahul Shah, Co-Head of Research at Equitymaster, believes investors with a time horizon of 10 years don’t need to worry as the long-term story of India remains intact.
Any delay there or any bad news on that front and there could be more downside in the offing,” he said.
We have talked about ICICI Bank, a lot of people talk about fintech and chase some of these fintech names which haven’t told us how they are going to make money whereas ICICI Bank is as much about technology as any of these fintech plays are.
It is not as if a lot of things they are doing are very unique or one has seen a clear comparative advantage in any of their activities that they have demonstrated.
Even though the business proposition seems – a lot of people are excited about the fact that it is a duopoly structure that is taking place in food delivery but that is a fair point and that gives them a certain sustainable advantage but there also how it can be profitable, at what point and how much of that one should pay for is a real question.
Santosh Meena, Head of Research at Swastika Investmart, said Paytm is continuing its southward journey after listing on the back of liquidation by retail investors, who were betting for a listing gain however there is a lock-in period of 30 days for anchor investors.
“We know that the digital economy is witnessing exponential growth across the globe, where India is in a leading position.
“Paytm comes out with exorbitant valuations where it was asking a market cap of Rs 1.4 lakh crore against revenue of Rs 3,000 crore.
The market will watch how Paytm will use its strengths to enter into new businesses or create a moat, and if it manages to emerge a leader in a particular business, we can expect buying interest from lower levels.
Brice mentioned that normally this is the strongest period for global equities, however, the unprecedented times that have continued over the last two years have cast a shadow but Brice is hopeful that the market will be seeing volatility pick-up.
A head and shoulder topping pattern gives credence and momentum to the ongoing bear move, which has the potential for a quick slide to 16,000, Anand James, Chief Market Strategist at Geojit Financial Services, told CNBCTV18.com.
Go Fashion India’s initial public offer was subscribed nearly 15 times so far on Monday, the third and final day of the bidding process.
Ashneer Grover, Co-Founder and CEO of BharatPe, told CNBC-TV18 it was sad to see recent developments with the Paytm IPO.