How do you value a stock? Which has a high valuation, and which is cheap? It all depends on the ratio you use to ascertain value. And relying entirely on the price to earnings (PE) ratio may lead to wrong investment decisions. Consider this example: Twelve years back, the stock of one MNC FMCG company was quoting at a PE multiple of 44 at a time the Nifty’s PE was at 25. Since then, the market capitalization of the stock has grown 10 times and its PE ratio today stands at 68. So, if you had made a decision to buy or sell the stock based on its PE number, you would have lost a great opportunity to create wealth. So, look beyond the PE ratio.

The NSE will host its Diwali Muhurat trading on November 1, 2024, from 6:00 PM to 7:00 PM, symbolizing the financial new year and traditionally yielding positive returns.

American investor and mutual fund manager Peter Lynch is renowned for his growth at a reasonable price approach to investing. He is often associated with the PEG ratio, which measures price-to-earnings ratios in relation to growth rates. MarketSmith has developed a custom screen based on Lynch's investment style, identifying securities that trade at below-average prices on a PE or PEG basis and are not widely owned by institutions.Here are 8 Indian stocks that align with Peter Lynch's growth investing approach, as listed on MarketSmith:

A short buildup occurs when there is a rise in open interest and trading volumes, coupled with a decrease in the price of the underlying stock in the Futures and Options segment. This indicates that more traders are expecting the prices to decline and are creating short positions. In Friday's trading session, five stocks saw fresh short positions being built. Here's the list:

While HDFC Bank, Bharti Airtel, ICICI Bank, and the State Bank of India were the gainers, Reliance Industries, Tata Consultancy Services (TCS), Infosys, Hindustan Unilever, ITC, and Life Insurance Corporation of India (LIC) suffered a combined erosion of Rs 76,622.05 crore from their market valuation.

Indian market recouped losses to close in the green on Friday. The S&P BSE Sensex rose more than 200 points while the Nifty50 closed above 24,800 levels.

Indian indices are currently valued highly compared to their historical averages, and many stocks across various sectors have low margins of safety at their current prices. Although currently undergoing a correction, the broader trend of the markets remains positive. To mark the beginning of a new 'samvat', domestic brokerage firm Wellworth Share & Stock Broking shares top 5 Diwali picks with up to 105% upside potential:

Indian indices rebounded as private banks led a recovery, breaking a three-session losing streak. Experts suggest buying Paradeep Phosphates and Vishnu Prakash R Punglia for potential gains.

A long buildup occurs when open interest and trading volumes increase alongside a rise in the underlying stock price in the Futures and Options segment, signaling a bullish market trend. In Friday's trading session, five stocks saw fresh long positions. Here’s the list:

Nifty declined 0.44% this week, influenced by auto, metal, and IT stocks. Key upcoming factors include FII flows, IPO activity, Q2 results, and global market trends

In the week ending October 18, the benchmark index Sensex, experienced a weekly decline of about 0.19%. Despite this slight downturn in the markets, 8 penny stocks saw gains ranging from 15% to 30% during the same timeframe. Our selection criteria focused on stocks with a market capitalization below Rs 1000 crore, a share price under Rs 20, and a last trading volume exceeding 5 lakh shares.(Data Source: ACE Equity)

Nifty declined 0.44% this week, influenced by auto, metal, and IT stocks. Key upcoming factors include FII flows, IPO activity, Q2 results, and global market trends

Contradictions are part of the market – and it is important to know how to manage them. What are the contradictions in the markets today? The one between the desire to buy and the high valuations on the one hand, and the fear of correction on the other. The contradiction between the desire to buy and high valuations is not new. The fear of correction set in at the start of this month with the strong wave of FPI selling. What should investors do? The answer: Go back to basics. Have more checks and balances; invest with a medium- to long-term perspective so that you don’t end up selling in panic in a corrective phase. And remember, it’s a phase we may have to live with for the next few months.

Many overlook that a portfolio can still perform well during downturns if its drawdown is smaller than that of the broader market. In today’s unpredictable financial landscape, effectively managing various risks is essential for creating a resilient, all-weather portfolio. In this article, we will explore strategies for building such a portfolio.

The Nifty is currently range-bound, with key support at 24500-24650 and resistance at 25000-25100. A break below support could lead to further weakness, while a move above resistance might signal a renewed uptrend. Sector rotation is expected, with opportunities in financials, energy, and consumption. Investors should remain cautious and selective in their stock picks.

Indian Indices are richly valued compared to their historical valuations, and the current prices of many stocks across different sectors offer a low margin of safety. India’s weight in global indices has been rising sharply over the past few years and continued performance will attract higher attention and allocation from large global funds.Overall, after a 28% rise in Nifty since last Diwali, moderate returns can be expected over the coming year with higher volatility.Under these circumstances, HDFC Securities has shortlisted 10 top picks for Diwali 2024 with upside potential of up to 32%.

What is the net profit margin of the company that is one of the biggest wealth creators of the last 20 years? Just 6.6%. And it’s not just in one year. In the last five years, the net profit margin has not moved into double-digits. At the same time, sales have been increasing year-on-year and profit on an absolute basis has been growing. And, of course, the stock is doing extremely well. The point here is: It is the overall size of a business that matters. And if the management is efficient, even a low-margin business can create a multibagger. We look at 5 stocks where the overall business opportunity is big and net margins are in single-digits – but the managements have a track record of executing well.

PG Electroplast shares have delivered impressive multibagger returns this year, with a gain of 225.6% over the past 6 months. The stock has also risen 158.6% year-to-date and 210% over the last year. This growth has been driven by strong operational performance and increased demand across its key product segments.

In an insightful conversation with ETMarkets, Sandeep Tyagi, Chairman and Managing Director of Estee Capital LLC, reveals his tried-and-tested approach to mastering the complexities of investing.His latest book, The Little Book of Big Gains, distils decades of experience into a simple yet powerful 174-page guide, focusing on mental clarity, disciplined strategies, and avoiding common investment mistakes.Tyagi emphasises the importance of balancing emotion with logic, offering readers a blueprint for long-term success in the ever-volatile world of capital markets.

A simple statement by a two-wheeler major that “the festive season is not panning out as expected” saw its stock tank 11% in a single session. Other players in the same space also witnessed sharp falls. One can argue that a large-cap stock with close to 100% gain in the last year is prone to such a correction. But it is also an indication that things are priced to perfection. A slight disappointment, and the reaction will be strong as valuations are either high or very high. There is nothing called value in the market. This begs the question: Is Bajaj Auto’s experience a one-off – something only a part of the auto industry is witnessing? Or is it an indication of broader festive season spending – or the lack thereof?

ETMarkets' analysis of BSE stocks with a market cap exceeding Rs 250 crore reveals that in the past three sessions (October 16-18), four stocks have consistently increased in price, trading volume, and delivery volume, indicating higher investor interest in these stocks. (Data Source: ACE Equity)

HCL Technologies, LTIMindtree, L&T Technology Services (LTTS), and several other companies are expected to be in the spotlight next week as they approach their record dates for dividends, bonus issues, and stock splits.

The new measure will take effect from November 20, 2024, for all newly introduced index derivatives contracts, including weekly, monthly, quarterly, and half-yearly, according to an NSE circular. The Nifty50 lot size has been increased threefold, from 25 to 75 contracts, while the Nifty Bank lot size has doubled from 15 to 30.

Promoters, often the founders or controlling shareholders, hold significant stakes in a company. Firms with high promoter holdings are generally seen as safer investments. However, in Q2 FY25, several companies from the Nifty200 index reported a drop in promoter shareholdings. According to data from StockEdge, here are 10 such firms that saw notable declines in their promoter stakes:

In the five trading sessions leading up to October 18, the Sensex index closed flat but with a negative bias at 81,225, recording losses in three of those sessions. Despite this modest weekly decline, ETMarkets found that 12 stocks from the BSE smallcap index saw consistent price increases during this time. (Data Source: ACE Equity).

According to a recent report by The Financial Times, Xiaohongshu, a popular social media platform in China, recorded $1 billion in sales and $200 million in profits in the first quarter of the year. With a user base of over 300 million and a valuation surpassing $17 billion, its success is impressive.

Nalwa Sons Investment led the small-cap gainers with a nearly 43% return, followed by Precision Camshaft (29%), Motilal Oswal (27%), and Renaissance Global (26.4%). Additionally, four stocks, including Kalyani Investment, Info Tech Transform, Filatex Fashions, and Sanghvi Motors, delivered returns between 20-25% during the week.

U.S. semiconductor stocks are under close scrutiny after mixed reports from international tech leaders triggered market volatility. Upcoming earnings from Texas Instruments, Lam Research, and Advanced Micro Devices are crucial for gauging future demand, especially in AI applications, which directly influence overall market trends.

The Dow Jones, S&P 500, and Nasdaq posted record highs, driven by strong Netflix earnings and gains in tech stocks. Netflix surged 11.1%, boosting the communication services sector. Despite some concerns over valuation and potential volatility, positive economic data and robust corporate results supported the market rally.

October is turning out to be the month where bears are making a comeback attempt. Their biggest hope of taking control: Continued selling by FIIs. Thursday saw a sharp decline in the indices and the broader market breadth – led by auto and real estate stocks. The next day, auto stocks recovered partially, and the broader market breadth improved. So, you need to be bullish in the medium term. But in the short term, there might be selling pressure as global markets react to a possible Chinese revival and the outcome of the US elections. Our selected stocks today have a strong upward trajectory in their overall average scores. This implies that there has been significant improvement in their market outlook in the given time frame.

The S&P 500 and Nasdaq gained, led by tech stocks, with Netflix soaring 10.2% on robust subscriber growth. Apple and Nvidia also rose. Meanwhile, American Express' revenue miss dragged the Dow down. Positive earnings and economic data kept main indexes on track for weekly gains.

Europe's STOXX 600 closed higher on Friday, boosted by tech stocks and an ECB rate cut. The tech sector rose 2%, despite earlier losses after ASML's weak forecast. Copper prices lifted basic resources shares. Luxury stocks also gained. However, Goldman Sachs cut its 2024 earnings growth forecast for the STOXX 600 to 2%.

The Reserve Bank of India (RBI) has lifted its ten-month-long restrictions on JM Financial Products, a subsidiary of JM Financial, after a special audit and rectification of regulatory and governance lapses. The company assures continued adherence to compliance standards in its financing activities.

On Friday, India’s benchmark index Sensex rose by about 218 points, closing at 81,224. During this rally, six stocks from the BSE500 index hit their 52-week highs. A 52-week high represents the highest price a stock has achieved in the past year, offering important insights for traders and investors. This benchmark helps assess a stock’s current value and forecast its future potential.

Netflix shares hit an all-time high on Friday, buoyed by investor optimism that its robust content lineup will help the streaming giant maintain upbeat subscriber growth even as the boost from its password-sharing crackdown wanes.

The S&P 500 and the Nasdaq opened higher on Friday, lifted by advances in technology shares, while the Dow Jones Industrial Average edged lower.

Markets regulator Sebi on Friday clarified that investors can continue using 3-in-1 accounts to apply online for public issues of debt securities, non-convertible redeemable preference shares, municipal debt securities, and securitised debt instruments. This is in addition to the existing modes of application, Sebi said in a circular.

Analysts see a potential short-term reversal in Nifty after a downward correction. Friday's chart signals a bullish pattern and a sustainable upmove from the lows. Support is at 24,500 and resistance at 24,950-25,000.

Short covering happens when traders buy back shares they previously sold short, often due to a shift in market sentiment or new information. This usually results in a decrease in open interest and can drive the stock price higher. In Friday's trading session, five stocks saw short covering. Here's the list:

Foreign investors are shifting money from India to China, leading to a 3.7% slide in Nifty in October. Macquarie believes it's a trading call, not an investment bet. China's MSCI showed a strong 13% relative rebound in Q3 2024, but momentum quickly faded. The choice between India and China is becoming increasingly challenging for emerging markets investors.

Long unwinding refers to the selling of positions or stocks owned for a longer period either to book profit or to exit it in anticipation of impending bearishness. In Friday's trading session, five stocks witnessed a long unwinding. Here's the list:

Indian benchmark indices Sensex and Nifty 50 rebounded from early losses on Friday, closing higher due to gains in banking and metal stocks. The Sensex rose 218 points to 81,224, while the Nifty climbed 104 points to 24,854, led by Axis Bank, ICICI Bank, Tata Motors, Tata Steel, NTPC, and JSW Steel. The market capitalisation of all listed companies on the BSE surged by Rs 96,045 crore to Rs 458.21 lakh crore.

In FY25 to date, the benchmark index Sensex has risen by approximately 10%, while the BSE Smallcap index has surged by 30%. During this time, 60 small-cap stocks have transformed into multibaggers. In today's MF screener, we identified 10 small-cap stocks that have increased by over 100% and are held by more than 30 mutual funds as of September 2024. (Data Source: ACE Equity, ACE MF)

On Thursday, it was auto stocks that led the market’s decline. Why is this worth taking note of? Because auto stocks, especially those that make HCVs and LCVs, give an early indication of how things are panning out in the economy. The reason is simple. When goods are produced, they have to be transported. So, the more the goods, the greater the need to transport them – pushing sales of HCV/LCVs. Now, look at the composition of the Nifty and Sensex. Does it give a real picture of the economy? IT and financial services dominate the weightages. IT is more representative of what is happening in the US economy. And financial services, though an important part of the economy, is still a lagging indicator rather than a leading indicator. Which then is the index one should look at to figure out what is happening on the ground? No, it is not an auto index. It is something else.

Domestic benchmark indices Sensex and Nifty 50 recovered from early losses to trade higher on Friday, led by heavyweight Reliance Industries and banking stocks. Meanwhile, five small and midcap stocks from the Nifty 500 index reached new 52-week highs. Here's the list:

Shares of BSE, Voltas, Adani Energy Solutions, Alkem Laboratories, Oberoi Realty, and Kalyan Jewellers may be included in the MSCI India Standard Index. This rebalancing could bring these stocks significant passive inflows. The announcement is set for November 6, and changes will take effect from November 26.

Shriram Finance's board will meet on October 25 to discuss splitting its existing equity shares. The board will also approve the September quarter's financial results and declare an interim dividend. Shriram Finance shares rose 3 percent, reaching a high of Rs 3341, and have rallied 80 percent over the past year.

Shares of Motilal Oswal Financial Services (MOFSL) have surged 36.7% over the last two weeks and 23% in the past week, reaching an all-time high of Rs 1,002.95. The stock displays a robust uptrend across all time frames, characterized by a series of higher tops and bottoms. Additionally, it has recently regained support from the 20-day and 50-day SMA and has bounced back strongly, signaling a positive trend.

As the Nifty witnesses cuts and the market declines, the focus has shifted to how things may pan out in the next few weeks – or months. Is the short-term movement of the Nifty and Sensex to be seen as an investment opportunity for the long term – specifically in sectors where a possible turnaround play is taking place? Maybe. The reality is that we are all impacted by short-term movements of the indices, especially when they are amplified by the media. So, make an effort to ignore corrections and look at sectors and stocks where course correction is happening in terms of the core business – that is, the operating matrix of the business.

National Securities Depository Limited (NSDL) announced on October 18 that it has reached a milestone of Rs 500 lakh crore (US $6 trillion) in assets held in custody. This rapid growth is remarkable, as it took 18 years to reach Rs 100 lakh crore in June 2014.