Monday, January 6, 2025

Short Call: Investors are buying as they fear losing investment opportunity know what are going on in HUL, KNR Constructions and Coforge - short call investors are buying as they fear losing investment opportunity know what are going on in hul knr constructions coforge


After rising in the market for 7 consecutive weeks, now the bulls look tired. Not only has the market been disappointed with the budget but it has also felt that market sentiment is not a priority for policy makers. Even after four consecutive sessions of decline, the major market indices have fallen by barely 1.5 per cent. Rahul Arora, CEO of Nirmal Bang Institutional Equities, says that at first glance the decision to increase taxes seems negative. But, the way the market recovered after the fall on the budget day, it seems that investors are ready to buy.

Market experts say that despite this, instead of having faith in the fundamentals of the market, investors are investing because they do not want to miss the investment opportunity (FOMO) is afraid of. There was a big fall in the American market on July 24. Nasdaq Fell 3.6 percent. This is the sharpest decline in the last 21 months. S&P 500 also fell by 2.3 percent. This is the sharpest single-day decline in the last 18 months. The concern of investors in the world is high valuation. Investors in India too will soon understand that share prices cannot remain disconnected from valuation for long.

The (closing) share price of Coforge is Rs 6,318. Coforge The first quarter results were as per expectations. Bulls say there are signs of recovery in BFSI. Also, with the increase in the number of employees, there is a possibility of further growth. The merger with Cigniti could see an increase in operating margins by FY27. Bearers argue that the EBIT margin has declined due to increased expenditure on visas and employees. The pace of new projects has been slow. Cigniti’s testing services may see more deflation than expected. Also the company may miss out on the benefits of the merger. These are big risks for Coforge.

The share price of the company is Rs 377.50. It has increased by more than 5 percent on July 24. Impact of government’s focus on infrastructure in the budget KNR Constructions Appeared on shares of. Bulls argue that Rs 2.52 lakh crore i.e. about 50 percent of the capital expenditure has been given for the Ministry of Road Transport and Highways. KNR Constructions will benefit from this. The company is entering a new segment, which will yield benefits in the future. Bears says that the pace of getting new projects has been slow. There has been delay in completing irrigation projects. Margin in new orders is also low. Apart from this, increase in input cost will also affect the company’s margin.

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These stocks closed at Rs 2,720 on July 24. It showed a rise of 1.64 percent. The company’s first quarter results have been good. Bulls say that volume growth going forward may remain in lower single digits. The reason for this is that the company will have to face tough competition in future. Bears argue that the company is focusing too much on the premium portfolio. This may alienate the company’s consumers in rural areas. According to the guidance, HUL’s margins are expected to remain stable.

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