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Stock reached a crucial support of the inverted head and shoulder neckline and turned the trend north.

In the Sensex pack, Tata Steel, Bajaj Finserv and Infosys were the top losers, falling about 1%. TCS, HCL Tech, Wipro, Tech Mahindra and Tata Motors also opened with cuts. On the other hand, Power Grid, NTPC, Titan, IndusInd Bank, M&M and Asian Paints witnessed some gains.

“Across sectors, the market movement, especially where small and midcap companies are concerned, will see a fair amount of dispersion and focus will be in terms of earnings growth as well as companies which have stronger cash flows and balance sheets and from that perspective we are looking at some of the smaller sectors.”

Amid quantitative easing by global central banks in the wake of the Covid-induced financial crisis, Dalal Street was overflowed with helicopter money in 2020 and 2021. Much ahead of the withdrawal of liquidity by the US Fed, FIIs started pulling out funds from Dalal Street in October last year itself and have so far withdrawn the majority of the easy money of Covid days.

“I keep looking at the markets and we keep looking at stocks where the market feels there is no growth left in the stock and if we see the kind of growth, we will go ahead and buy like we bought Thomas Cook. We bought hotel stocks about a couple of years back. We will keep looking at these things and buy and then hold on.”

A total of 292,927 shares changed hands on the counter till time (IST).

The stock trades at a P/E multiple of 21.2x and EV/EBITDA multiple of 9.1x its FY2024E estimates.

Given that the macroeconomic factors remain conducive in India and corporate earnings growth have improved, most brokerages are betting on automobile, banks, industrials, capital goods and engineering, consumer staples, real estate, and telecom sectors in 2023.

"Many companies have been saying about the drag in the rural areas and we think that the government is actually shifting there with a new supplementary Budget. Additional budget is going largely to the rural areas, into employment, into subsidy etc and those are the places where the policy shift is happening. "

Promoters held 9.7 per cent stake in the company as of June ended quarter while FIIs owned 51.35 per cent, DIIs 26.30 per cent.