It’s not just the Credit Suisse call that has sent shockwaves about one of the most loved comeback stories in recent Indian capital market history, it is the timing that is most cruel. We mean, how do you console the mutual fund managers who just as recently as April raised their exposure to the sector to the highest level over 29 months? The poor chaps felt they finally were proven right about sticking with ‘value’ and must have counted on being right for a long time.
While Credit Suisse’s bold prediction sent the Nifty Metal index tumbling nearly 2 per cent, we expect the broken hearts to rebel. Drama awaits, folks.
shows how to rebel
If the owners of metal stocks are plotting a defiant ‘buy-the-dip’ protest against Credit Suisse’s downgrade of the steel sector, they could take some cues from Bajaj Finance. The brokerage firm reduced its weight on the stock to zero in its model portfolio, but investors hardly cared. In fact, they showed their defiance by helping the stock end as the second biggest winner on Nifty50, up nearly 3 per cent.
IT stocks groove
In capitalism, someone’s loss is someone else’s opportunity. And today, it was the information technology sector that grabbed it with both hands as it benefitted from some of the money flowing out of steel and other metal stocks. The gains in the sector were led by its beating heart – Infosys. Shares of the Bengaluru-based company rose nearly 3 per cent as investors bet on the ongoing demand for digital transformation in advanced economies to keep the orders flowing.
Lure of the AMC business
It may not be capturing the newspaper headlines, but we thought we should tell you folks that Angel Broking’s stock has more than doubled so far in May. The brokerage firm’s announcement of entering the asset management business with new ideas and computer models seems to have lit a fire under the stock with gravity having no traction at all. The stock notched another 5 per cent gains as if it was as easy as buying stuff on Amazon.
Perhaps, gravity will have its say soon but till then, we think we all should enjoy the fireworks.
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