Jefferies expects limited surprises in the FY27 Union Budget, with the government sticking to fiscal consolidation while focusing on defence-led capex and targeted consumption support. The FY27 fiscal deficit is seen around 4.2% of GDP, though a higher 4.4% could signal a growth push, supporting equities but pressuring bond yields.
Retail-dominated Indian stocks have experienced significant declines, with top performers crashing up to 43% since June 2024. This sharp correction, particularly in stocks with high retail ownership, highlights the vulnerability of crowded trades when market momentum shifts. Several prominent companies across sectors like infrastructure, green energy, and IT have seen substantial losses.
Indian stock markets are experiencing weakness. Experts advise investors to focus on companies with strong earnings growth. The auto and auto ancillary sectors show promise. Mid-sized banks are also performing well. Investors can find opportunities in quality stocks for medium-term gains. Long-term investors can look at sectors like steel.
As of January 19, seven stocks in the NSE F&O universe saw a notable surge in futures open interest, with total open interest rising by over 10% compared with the previous trading session. A sharp increase in futures open interest indicates a rise in the number of active, unexpired contracts in a security. This trend suggests growing participation, with traders either initiating fresh positions or adding to existing ones in the futures market.
Ace investor Dolly Khanna has adopted a cautious approach in Q3 FY26, trimming stakes in five stocks and potentially exiting one. She has also added IFB Agro Industries to her portfolio. This move comes amid a generally cautious market sentiment.
Mutual funds divested Rs 8,600 crore of Infosys shares in December. The IT major has since reported better-than-expected Q3 results and increased its full-year growth forecast. This performance is now attracting investor attention, signaling a potential stabilization in the stock's outlook. Analysts are revising targets upwards, anticipating accelerated growth driven by AI services.
On January 19, in the Nifty500 pack, four stocks came to the bullish scanner of "White Marubozu", according to stockedge.com's technical scan data. A White Marubozu is a bullish candlestick pattern in technical analysis. It occurs when the opening price is the lowest for a given period, and the closing price is the highest.Represented by a long white (or green) candlestick with no upper shadow and a small or nonexistent lower shadow, it indicates strong buying pressure throughout the session. Traders interpret it as a signal that buyers were in control from the opening to the closing, often using such patterns for informed decisions about future price movements in financial markets."
In terms of valuation, the stock is currently trading at a price-to-earnings (P/E) ratio of 22.86. Its price-to-sales (P/S) ratio stands at 3.49, while the price-to-book (P/B) ratio is 4.73, indicating how the market values the company relative to its earnings, revenue, and net worth.
As many as 43 companies, including Persistent Systems and ITC Hotels, are set to announce their December quarter earnings on Tuesday. Analysts anticipate growth for Persistent Systems driven by BFSI and healthcare, while AU Small Finance Bank is expected to see improved net interest margins and robust business growth.
