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Prabhudas Lilladher has upgraded its EPS estimates for Asian Paints due to the strong demand outlook and higher EBITDA margins in FY24/25. The report cited a 16% increase in volumes during 4Q23, along with stable product pricing and benign raw material costs as drivers of margin expansion.

Golden Crossovers: Paytm among 8 stocks signalling further bullishness

Sundram Fasteners stock has a year-on-year return of almost 47%, outperforming the Nifty50 index. Analysts suggest a possible upside for the stock of 10-22%, with a positive consensus view from most brokerages. Besides manufacturing components for various sectors, the company is trading at P/E and EV/EBITDA multiples of 26x and 16.9x, respectively based on FY25E. Technical analysts believe breakout patterns and strong support levels favor buying on declines while fundamental analysts project significant improvement in operating numbers aided by large EV orders in FY25E. Pricing pressures from automotive OEM customers and US/Europe recession risks form key risks for the company.

Indian government bond yields remained steady as traders awaited debt supply and local inflation data later in the day. India seeks to raise $4.77bn through bonds, which include 120 billion rupees of the liquid 2036 paper along with other bonds. The market awaits the auction cut-off to gauge the demand from long-term investors. Yields eased following the cooling of US inflation, which suggested that the US Federal Reserve would pause its rate hike cycle. The benchmark bond yield is expected to remain within the 7% to 7.05% range during the session.

​So since we have had a decent run, we could see some sort of consolidation between now and September. And obviously third quarter onwards, we see the markets again moving higher and the build up into calendar 24 where I think that a solid 15 to 20% absolute returns on the index is very much possible.

On the technical charts, the RSI of the stock stood at 61.18.

MSCI Inc has reduced the weightage of 15 Nifty50 stocks as part of its May global index review. The downgrades will cause net outflows of nearly $1bn. Weights of Tech Mahindra, Tata Consultancy Services, Infosys and Mphasis have been cut. Weights for Axis Bank, Bajaj Finance, Divi’s Laboratories, ICICI Bank, HDFC, Hindalco Industries, Bharat Petroleum Corp and JSW Steel have also been reduced. The weights of eight index stocks, including Kotak Mahindra Bank, NTPC and UltraTech Cement have been increased, resulting in net inflows of approximately $400m.

In a rising interest rate scenario, all these things are bound to happen. We are coming out of a regime where there was zero cost of capital two years ago. And today, cost of capital is significantly higher than those levels. So, if your denominator is expanded, your valuations will obviously cut.

Reliance is a long term concern. In FMCG, the incumbents do not really lose out market share from medium to long term because in the last two decades, we have seen multiple global players, even herbal players came into FMCG.A lot of D2C companies came but if you see market share of any of the listed players in either 75% or 95% also, they are gaining market share and in many categories, it is a 15 year high market share.

AMC stocks, we can say they are in value zone just because they have done so badly and valuation is not as expensive, but growth triggers are not there.