Why Before Election?

The recent surge in volatility in the Indian stock market may persist for the next few weeks, and the benchmark Nifty 50 may correct for another 2-3 percent in the coming weeks, driven by the prevailing uncertainty surrounding the outcome of the Lok Sabha election on June 4th, according to experts.

Market experts, however, remain upbeat about the medium-to-long-term prospects of the Indian stock market as they believe volatility due to election outcome would be short-lived, and investors should buy quality stocks during the crash for the long term.

Amit Shah shares stock market tip: Buy before June 4 counting day

With a low voter turnout in the ongoing Lok Sabha elections being blamed for the fall in Sensex and Nifty, Union Home Minister and BJP leader Amit Shah has told investors to buy the dip.

"The stock market has witnessed bigger dips than this one. It should not be linked to the elections. Anyways, rumors may have happened. You can buy before June 4, it (the market) will shoot up," Shah told NDTV.

After That interview, the nifty which Was trading at 22000 Within 3 Days touched the High of 22300 Level

But then Also We should not fall for tips and Calls to trade or invest in the stock market no matter who is saying and what before our analysis of the market

Fundamental Analysis

A method of evaluating the intrinsic value of an asset and analyzing the factors that could influence its price in the future is called Fundamental analysis. This form of analysis is based on external events and influences, as well as financial statements and industry trends.

KEY TAKEAWAYS

• Fundamental analysis is a method of determining a stock's real or "fair market" value.
• Fundamental analysts search for stocks currently trading at prices higher or lower than their real value.
• If the fair market value is higher than the market price, the stock is deemed undervalued, and a buy recommendation is given.
• If the fair market value is lower than the market price, the stock is deemed overvalued, and the recommendation might be not to buy or to sell if the stock is held.
• In contrast, technical analysts favor studying the historical price trends of the stock to predict short-term future trends.

Stocks To Watch Before Election

• Zomato:- 86% of the Brokerage Houses have Buy advice on Zomato Share, Zomato Q4 results: Firm reports Rs 175 crore profit vs Rs 188 crore loss YoY; shares close in red as earnings miss expectations. Zomato's Q4 profit of Rs 175 crore marked a significant turnaround. Revenue reached Rs 3,562 crore, missing estimates. Zomato does not expect competition to intensify further despite the entry of ONDC in the space. Zomato retained Blinkit’s Adj. EBITDA break-even guidance on or before Q1FY25. Zomato is expected to deliver a strong 70%/41% YoY growth in FY24/FY25, with Blinkit outpacing the food delivery business because of geographical expansion, improvement in order frequency, and moderation in a competitive environment in the quick commerce industry, it said. After turning positive at the margin level in 3Q

• ITC:- The resilient nature of ITC’s core business amid an uncertain environment in the sector, along with a 3-4% dividend yield, makes it a good defensive bet in the ongoing volatile interest rate environment, The performance of other FMCG segments remained resilient, with 7.3% revenue growth. The contribution of digital and modern trade businesses was significant at 31% of revenue. Moreover, the agriculture business is focused on trading, and a new nicotine plant is set to commence operations in Mar’24, it added. The earning CAGR at the PBT level stood at 8.5% over FY18-23. MOSL expects ITC to post a 7% earnings CAGR over FY24-26. 

• ICICI Bank: ICICI Bank reported a healthy performance in 4QFY24, with 17% YoY growth in net earnings. Credit growth was healthy at 16% YoY/3% QoQ, led by healthy traction in the Retail, SME, and BB segments. Deposit growth surprised positively at 20% YoY. The brokerage expects the bank to sustain a ~14% CAGR in PAT over FY24-26E and RoA/RoE of 2.26%/18.0% in FY26.

• SBI: SBI has made a swift recovery in earnings, from a loss of ₹6,500 crore in FY18 to profits of ₹61,100 crore in FY24, It noted that the lender's business growth remained robust, with a healthy recovery in the corporate segment. SBI's asset quality also remained healthy as GNPA improved & slippages moderated. GNPA/NNPA ratios moderated to 2.24% (lowest in >10 years)/0.57% as of 4QFY24, it added. It is well positioned to deliver steady earnings, with FY26E RoA/RoE of 1.1%/18.5%

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Seben Capital. We advise investors to check with certified experts before taking any investment decisions.