Throughout this week, we have just seen buying and only buying in Indian stock market. Nifty has recently crossed levels of 10400. On Wednesday trading session, most actively traded themes were telecom sector, Banking and few others.
However, today’s post is on the topic of actively trading stocks. I will briefly discuss what fundamentals are saying about few stocks that were actively traded this week.
After Jio quarterly results announced in October months, we have seen a rapid buying in most of the telecom stocks. Bharti Airtel which had not given any big breakout in last 5 years has now crossed levels of Rs.500. Its stock has delivered a wonderful return of more than 30 percent in last one one month.
But the point is how much stock can perform now if all the things go in favour of telecom companies? I know that bharti airtel is a good stock to hold for long-term. But if we go through price potentials, then i think idea would be the best safe play from telecom sector as per current conditions. Therefore, one who holds airtel shares can continue holding it. But for better returns which will probably seen soon, one should go with idea cellular.
Another stock which is observed to be very active this week is of Divi’s labs. On Thursday trading session, stock rallied almost 20 percent. Its stock zoomed intraday after the company informed that the USFDA is going to lift the import Alert and will move to close out the warning letter issued to the company’s unit-II at Vishakhapatnam. However, it loose some gains after hitting high of Rs.1117.
In recent quarters, Pharmaceuticals have faced some problems due to exposure to US Markets. However, earlier this year, performance of pharma companies in Indian markets also observed to be less growing. But in this period of difficulty, some companies have managed to report stable and growing earnings.
Although, going forward, pharma companied are expected to see a good growth. But still, the valuations at which they trade are not cheap. Pharma sector has already seen a big rally between 2010-2015. So, one who wants to invest in pharma stocks can invest for long-term. But don’t expect marvellous returns from sector. Thus, investors may also choose or can invest in other sectors having great potential.
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