Time To Go For Some Value-Buy In The Markets After Window-Shopping

Equity markets in India turned sideways during past two weeks while also settling some nervous steps and volatility owing to war hysteria in the region and even beyond and also interest rate changes made by RBI during the beginning of the month. Now markets await developments in the US on two fronts viz., the presidential election to be held on November 8 and the US fed interest rate decision where it is expected that the interest rates will be hiked by 0.25 bps at least.Second half of this month was characterised by the FIIs turning out be the net sellers to the tune of Rs 5474 crores. DIIs however lent crucial support to the markets by pumping in Rs 5371 crores during the also highlighted the outperformance by small-cap stocks as reflected by a steady gain of 2.24 per cent in the small-cap index. Bankex was the best performing index in the second half of the month which clocked almost 2.83 per cent gain. Auto index with negative 2.24 per cent followed by realty index with negative returns at 1.64 per cent were the major dampeners.Globally the markets have been relatively steady with Dow Jones Industrial Average shredding 0.39 per cent in the past two weeks. Japanese market was amongst the best performers globally by clocking gains of 2.99 per cent followed by DAX at 2.54 per cent and CAC 40 at 2.02 per cent .

Investors will also be eyeing IPOs slated to hit the markets during the coming week. Recently newly listed companies have done well on bourses and the upcoming quality public issues are expected to keep the investors occupied with the expectations of making profits from it

Recent developments in the Tata Group have triggered a lot of confusion among the investors with several Tata Group stocks correcting sharply based on Cyrus Mistry’s ouster by the Tata Sons board of directors.

One of the important developments that can set direction for the markets is the earnings growth and the improvement in the same QoQ. Apart from a negative surprise in Axis Bank numbers, the results so far have been more or less meeting street estimates. Non performing asset related (NPA) issues keep haunting the banking industry and the same is reflected in the Axis Bank results.

Large-caps have been consistently underperforming and the second half of October continued to reflect large-cap underperformance with Sensex gaining a mere 0.11 per cent over the period. DIIs, going by the data seem to focusing more on mid-cap and small-cap stocks.

Investors with keen understanding of market risks can start looking at value buying as markets are correcting, with several large-cap stocks emerging as great buys post correction and sideways movement.