Tale of the Tape
Hey, guys. Markets closed down for a 7th straight day, the longest losing streak since Feb 24. 🚨
Nifty and Sensex went belly up after opening higher. Monthly F&O expiry and uncertainty ahead of the RBI policy meeting dented investor sentiment. Midcaps (+0.4%) and Smallcaps (+0.6%) continued to outperform. The advance-decline ratio was split evenly. ✌️
Most sectors ended in the green. PSU Banks (+1.2%) and FMCG (+0.9%) were key sources of strength. Metal stocks (+0.5%) had a rare green day. IT was the top loser, down 0.9%. 📉
Ace investor Samir Arora has no IT stocks in his portfolio. Know more below. 👀
Pharma stocks extended their unbeaten run to day 3. Sun Pharma Advanced, Suven Pharmaceuticals and Abbott India rallied between 6%-14%. Check out their charts below. 🚀
Nykaa (+1%) will consider the proposal of a bonus issue on Oct 3. 👍
Hero MotoCorp (-2%) hit a 3-month low. Global brokerage firm Morgan Stanley sees a 25% downside from current levels. 🤕
Canfin Homes bounced +3% intraday after 7 lakh shares (0.5% equity) changed hands in multiple block deals. 🤝
Chemcon Speciality Chemicals (+9%) hit a new all-time high after starting production at its new Gujarat plant. 🏭
BlueDart will increase transportation charges by ~10% from next year. 🚚
Cryptos pulled back after yesterday’s ugly cut. Bitcoin and Ethereum rose 4% each. Solana bounced +5%. 📈
Here are the closing prints:
Nifty | 16,818 | -0.2% |
Sensex | 56,409 | -0.3% |
Bank Nifty | 37,646 | -0.3% |
Not Going Anywhere Near IT
Dalal Street legend Samir Arora told Stocktwits in an exclusive chat that he does not own a single IT stock for the first time in 26 years! 🤯
As we all know, IT stocks are having a rough time. The Nifty IT Index is the worst performing sector, down +30% this year. While the correction may have turned prices attractive, Samir believes it is best to avoid IT stocks for the next 6-12 months. 🚫
What’s the deal bro? IT companies earn a majority of their income from the US and Europe. Rapid interest rate hikes plus geopolitical tensions have put both markets at serious risk of slipping into a recession. This in turn has sparked fears of a demand slowdown. Additionally, the startup funding winter may hurt business, which is a negative, said Samir. 🚨
PS – Accenture, the world’s largest IT services company, forecast a 6% growth next year. That’s significantly lower than the +20% growth in the current year. Samir says the weak earnings outlook plus steep valuations have lowered the appeal of IT stocks. He is, however, bullish on financials and FMCG. ✅
Check out our full conversation with Samir Arora, where he shares his view on markets, how he filters stocks, and tons more: https://bit.ly/3fuXWk3.
Numb The Pain
Pharma stocks were red hot. The Nifty Pharma Index hit a 1-month high after closing up for a third straight day. For comparison, the Nifty hit a 2-month low after falling seven days in a row. Sectoral rotation to defensive stocks like pharma, slew of US FDA approvals and attractive valuations, are key positives. Sun Pharma Advanced, Suven Pharmaceuticals and Abbott India rallied between 6%-14%. Check out their charts below:
Stocktwits Spotlight
UPL hit a 3-month low! Thank you Stock Phoenix for the awesome call. Follow them for more amazing trade ideas and add $UPL.NSE to your watchlist to track its performance. Here’s the link: https://bit.ly/3dSxq3I.
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