Here is what market gurus and industry captains said about the near-term trajectory on January 15, 2021.
On IT sector |The stocks have rallied into the earnings numbers and when that happens, you would tend to see a correction. It is a sell-on-news type of syndrome and investors who are still underweight can keep these stocks on their watchlist and as and when they see a correction of anywhere between 10 percent and 12 percent from the recent high, that would be a good entry point. However, IT companies have come out with exceptional set of numbers and there is a growing perception that if you are going to be positive on digital businesses globally then IT companies are the facilitators and maybe they deserve a slightly higher P/E multiple. --Dipan Mehta, Elixir Equities
On metal stocks | Jindal Steel and Power (JSPL) could see higher cost inflation compared to SAIL. JSPL still has to buy a certain portion of iron ore from outside. So in terms of cost inflation overall, they would have a bit higher than what SAIL would be experiencing. Tata Steel Long Products will be in focus for its merger with Tata Metaliks. Catch the conversation here. --Vikash Singh, PhillipCapital
On real estate market | The real estate market has been sluggish. So reduction in taxation and other facilities can be given to real estate. That will be beneficial for us and the public at large. Recently the rates of building material have jumped up like anything. So, if something can be done to control the volatility of rates of building materials would help. In the current year, we have new orders worth Rs 2,600 crore. A few more orders we are expecting in the current financial year. Our order book is already very strong. Our major focus is now on the execution of projects. Catch the conversation here. --Pawan Kumar Gupta, CMD of NBCC
On Piramal Enterprises | Piramal Enterprises is something that we find very compelling at this point in time. The main reason is that if you see the way the real estate sector has performed in the past few months, particularly companies focused in Maharashtra, it has been quite exciting. So, with that exposure and the liquidity being available on the balance sheet should bode well for a company like Piramal. I think this looks to be a very good bet at this point in time. So, we have a target price that is about 18-20 percent higher than the current price. --Hemang Jani of Motilal Oswal Financial Services
On NPAs | Reserve Bank of India (RBI) is clearly very cautious on non-performing assets (NPAs) – what has happened over the last six months is that while there has been a lot of pain, businesses have cleaned out very aggressively. To that extent, fundamentally, our view is that you are not going to see the kind of pain that the RBI is expecting. Catch the conversation here. --Aditya Narain, Head of Research, Institutional Equities at Edelweiss Securities