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Sanjiv Bhasin of IIFL Securities explains why IEX, which is going through a lot of regulatory headwinds and GMR Infrastructure are in his recommended list. Also, he says on a valuation basis one can put some more extra weight on Hindalco. It has a very good risk reward at this price.

The company is offering bonds maturing in 24 months, 36 months, 60 months and 120 at an annual yield in the 8.94% to 10.46% range for investors. These notes are rated AA- by CRISIL and Acuite Ratings and Research.

The June quarter earnings for the information technology (IT) sector are expected to be weak due to a slowdown in discretionary spending. Factors such as scaled-down budgets, lack of operating leverage, higher costs, transition costs, and pricing pressures are expected to weigh on earnings. IT companies are projected to report a 5.3% YoY revenue growth for the quarter, with a mere 0.4% sequential growth. Analysts also anticipate major IT players like Infosys and HCL Technologies to lower their sales growth outlook for FY24.

Several stocks, including Indian Bank, Canara Bank, Thermax, Tata Consultancy Services, Wipro, Atul, and Sun TV Network, closed above their 100-day Simple Moving Average (SMA) on June 30, 2023. This indicates potential short-term upward momentum and the emergence of a bullish pattern. These stocks belong to various sectors, including banking, engineering, IT services, chemicals, and media. Please note that this article has been generated by AI and contains data sourced from StockEdge. The opinions expressed in this article do not represent those of the Economic Times.

The recent rally in the stock market may be nearing its end, according to experts. They cite several short and medium-term risks, including potential global economic recession, signs of slowdown across sectors in India, and stretched valuations. The banking sector may no longer be attractive, as interest rates have peaked, while the IT sector is facing headwinds from the global economic fallout. Additionally, the consumption side of the economy is looking cloudy, with lower discretionary spending and inventory pile-ups. A 5-6% correction is needed to clear the froth, and investors are advised to be cautious in the short term.

Tata Consultancy Services (TCS), an IT major, is expected to announce a share buyback proposal along with its quarterly results, according to Jefferies. TCS had previously announced a buyback worth Rs 18,000 crore in 2020. Other IT companies such as Wipro are also engaging in share buybacks. Jefferies predicts that IT companies may report a decline in revenue and margins due to wage hikes. Motilal Oswal expects a modest YoY growth in revenue and a drop in profit for the June quarter. IT companies have been cautious in their guidance amid a challenging global environment.

Among Sensex stocks, ITC, Reliance, Bajaj Finance, and SBI were the top gainers, surging 2-3% each. HDFC, UltraTech Cement, M&M, HDFC Bank, Tata Steel and ICICI Bank also ended higher.

Most of the other decisions that we make are linear whereas investment related, especially decisions related to appreciating assets, they tend to be cyclical and I think it is important that you have somebody who has seen some cycles in this market, he has understood the ups and downs in the market.

Several mid-cap stocks on the S&P BSE MidCap index reached new 52-week highs, attracting significant investor attention. Some of the notable performers include ABB, Abbott India, Aditya Birla Capital, Ashok Leyland, Cholamandalam Investment & Finance, Cummins India, Exide Industries, Godrej Industries, Hindustan Petroleum, and L&T Finance Holdings. These companies operate in various sectors such as electrification, pharmaceuticals, financial services, automotive, and manufacturing. Please note that the data is sourced from BSE and is current as of 12:45 pm.

Motilal Oswal, a domestic brokerage firm, has stated that the valuations of Indian stock markets are now more reasonable compared to their highs in October 2021. The Nifty trades at a 12-month forward P/E of 18.8x, at a 6% discount to its long-period average. Nifty EPS grew by about 19% during FY20-23. Despite the Nifty reaching new highs, it has remained almost flat over a two-year period. The bull run has been fueled by strong FII flows, solid corporate earnings growth, and expectations of high-teens earnings CAGR over FY23-25. The upcoming June quarter earnings season will be closely watched.