Check out top 10 stocks each where FPIs, MFs, BFIs, LIC raise stake in June quarter

The top stock, wherein all three type investors - FPIs, MFs and BFIs increased stake.

The June quarter was a mixed bag for the equity market as frontline indices rallied sharply while broader markets were under pressure. But overall quarterly earnings season was stable to better-than-expected that boosted investors sentiment in July and August and helped the market hit fresh record high.

Bulls kept tight control on Dalal Street as the Sensex rallied 7.5 percent and the Nifty jumped 6 percent during the quarter ended June 2018, supported largely by domestic inflows when FIIs were net sellers in Indian equity market.

"Foreign portfolio investors (FPIs) sold equities worth Rs 20,000 crore in the quarter ended June 2018. FPIs sold stocks in automobiles, consumer and energy sectors," Kotak Institutional Equities said in its report.

FPI ownership in the BSE-200 Index came down to 23.8 percent in the June quarter from 24.6 percent in the preceding quarter, it added.

In the same quarter, Kotak said mutual fund (MF) invested Rs 37,500 crore and they bought across all sectors. "MF holding in the BSE-200 Index increased to 6.4 percent in June quarter from 6.3 percent in March quarter."

The BSE 200 index itself also performed nicely, gaining 4 percent in quarter but the broader markets underperformed frontliners as the BSE Midcap index lost 3 percent and Smallcap shed 5.66 percent.

The top stock, wherein all three type investors — FPIs, MFs and BFIs, increased stake was Magma Fincorp.

Other two stocks, wherein FPIs raised their stake, were TeamLease Services and Mphasis. MFs upped stake in Nalco and Bharat Financial Inclusion while BFIs increased stake in Hero Motorcorp and Dewan Housing Finance.

Stock investments by FPIs during the June 2018 quarter

Top three stocks, wherein FPIs sold large stake, were PC Jeweller (from 31.2 percent in March quarter to 19.1 percent in June quarter), Vakrangee (from 29.1 percent to 20.5 percent) and Manpasand Beverages (from 21.6 percent to 13.4 percent).

Stock investments by MF during the June 2018 quarter

Top three stocks, wherein MF sold large stake, were Gateway Distriparks (from 18.1 percent in March quarter to 15.2 percent in June quarter), Sobha (from 10 percent to 7.8 percent) and Dr Lal PathLabs (from 10.1 percent to 7.9 percent).

Stock investments by BFIs during the June 2018 quarter

Top three stocks, wherein BFIs sold large stake, were Coromandel International (from 5.6 percent in March quarter to 1 percent in June quarter), IDBI (from 11.8 percent to 8.4 percent) and Nalco (from 11.4 percent to 8.5 percent).

Stock investments by LIC during the June 2018 quarter

Top three stocks, wherein LIC increased stake, were Hero MotoCorp (from 3.5 percent in March quarter to 6.4 percent in June quarter), GSK Consumer (from 0 percent to 2.7 percent) and SAIL (from 10.8 percent to 12.6 percent)

 

Top three stocks, wherein LIC sold large stake, were IDBI (from 10.8 percent in March quarter to 8 percent in June quarter), Nalco (from 9.2 percent to 6.5 percent) and Mindtree (from 2.1 percent to 0 percent)

Stock investments by Individuals during the June 2018 quarter

Individuals increased stake in PC Jeweller (from 3.4 percent in March quarter to 15.3 percent in June quarter), Vakrangee (from 10.4 percent to 15.2 percent) and Manpasand Beverages (from 2.9 percent to 7.4 percent).

Individuals reduced stake in Indiabulls Ventures (from 16.8 percent to 12.8 percent), DCB Bank (from 28 percent to 25.8 percent) and Vardhman Textiles (from 10.6 percent to 8.6 percent).

MORE WILL UPDATE SOON!!

BSE Midcap is currently at 23.3x, a premium of 14.8% over Sensex; Time to buy?

Post a considerable fall in midcaps, there is a very strong case for value buy in the entire mid-cap space. However, investors need to be careful and cautious while selecting stocks with a focus on quality management and growth visibility.

Despite our stock markets notching record highs, the broader market (most of the midcap and smallcaps) has failed to participate in this bull run.

The recent underperformance of broader markets can be attributed to many reasons such as higher valuations, many of the fundamentally strong midcap companies included in the ASM framework and auditors pull out etc.

If we consider the valuation part only, the strong out performance earlier had resulted in stretched valuations for mid-caps and a meaningful correction was long overdue.

The rally in this space was so sharp that it resulted in mid-cap valuations rising to almost 35 percent premium against the large-caps early this year.

Therefore, some correction was due which has happened and turned overall markets healthy from a long-term perspective. Small and mid-cap stocks have outperformed large caps in the last few years before the correction that triggered in January 2018 mainly due to rise in crude oil prices and tightening of monetary policies in US and India.

The carnage in the broader market has turned valuations attractive and opened up several value-buying opportunities. Both BSE Midcap and Small-cap indices are currently trading at 13-17 percent below their recent highs and in some cases, stocks have corrected by more than 50-60 percent respectively.

Such declines have generated opportunities for buying into selective good quality midcap stocks where earnings visibility is stable and high.

One-year forward price-to-earnings (PE) ratio of BSE Midcap is currently at 23.3 times, a premium of 14.8 percent over the Sensex which trades at 20.30 times, according to Bloomberg data.

However, on January 1, the mid-cap index traded at 23.65 times one-year forward P/E, a premium of 27.29 percent on Sensex which was almost double to present premium.

Now, post this considerable fall in mid-caps, there is a very strong case for value buy in the entire mid-cap space. However, investors need to be careful and cautious while selecting stocks with a focus on quality management and growth visibility.

At the current juncture, as the benchmark indices are notching record highs, there is a strong possibility that markets may get polarized. It is also a fact that we are in an election cycle and election brings uncertainty with itself.

The last thing which market participants generally like to deal with is uncertainty that ensures high volatility despite no major change in underlying fundamentals.

So, it is prudent not to invest aggressively or chase stocks which are showing momentum as valuations are indeed stretched.

The markets will give the opportunity to enter into dips, so one should brace well to weather any sort of volatility and should use the panic to buy. Going by the Q1 performance of the companies across sectors, most of them have matched to our estimates.

Many stocks from the broader market, which have fallen due to above-mentioned reasons, have reported very good financial performance.

There is certainly a strong buy case in a lot of such midcap and small-cap stocks which have been corrected due to stretched valuations or inclusion in ASM and general market sentiment etc.

MORE WILL UPDATE SOON!!

Stay long on Nifty; top 3 stocks which could give 10-13% return in 1 month

Further consolidation cannot be ruled out till the index trades below the level of 11,495. Once that get taken out, the index can head towards 11,640 in the short term. On the other hand, 11,366 – 11,340 shall act as a key support zone for the index.

  

The Nifty has posted a fourth consecutive positive close on the weekly chart. The week went by started on a negative note; however, the bulls managed to push the index higher towards the end.

In terms of the wave structure, the index has completed an Impulse on the upside from 10,557 to 11,495. The hourly chart reveals that the fall from the recent high of 11495 is a corrective structure.

This means that the fall is unlikely to turn out to be a deep one. A higher degree structure shows that this is a fourth wave consolidation, which is typically a sideways one.

Further consolidation cannot be ruled out till the index trades below the level of 11,495. Once that get taken out, the index can head towards 11,640 in the short term. On the other hand, 11,366 – 11,340 shall act as a key support zone for the index.

USD/INR, in the last week, has broken out from a bullish Flag pattern with a breakaway gap. The bullish price breakout has occurred on the backdrop of bullish daily momentum indicator.

The conservative pattern target has already been met on the upside whereas the subsequent targets are 70.60 and 71.50. On the other hand, the gap area of 69.40 – 69.02 shall now assume the role of support.

The small-cap & mid-cap indices have witnessed a sharp bounce over the last few weeks. On the way up, they have surpassed their respective multi-month falling trendlines.

This is a bullish sign from a short to medium term perspective. So, there is indeed a sign of recovery in the broader market.

Here is a list of top three stocks which could give up to 10-13% return:

L&T Finance Holdings: Buy| LTP: Rs 181.95| Target: Rs 200| Stop loss: Rs 173| Return: 10.5%

The stock has formed a bullish Flag pattern on the daily chart and is on the verge of a breakout on the upside. In the last session, it has given a bullish breakout from an Inside bar

Ambuja Cements: Buy| LTP: Rs 228| Stop loss: Rs 220| Target: Rs 252| Return: 10%

The stock has completed a three wave correction after an Impulse on the upside. Post the correction, the stock has taken support near the key daily moving averages. Hereon, next set of Impulse is expected to start on the upside.

Raymond: Buy| LTP: Rs 794| Stop loss: Rs 756| Target: Rs 900| Return: 13%

The stock has formed an Ending Diagonal pattern after a substantial fall & has broken out on the upside in the last session. The daily momentum indicator is showing a positive divergence, which is a bullish sign.

MORE WILL UPDATE SOON!!