Markets, models & more - Week 3 - April'23

Markets & models

Stock markets remained volatile but rangebound for this week. Nifty closed lower at -1.14%, while the Nifty 500 was down by -0.72%.

With the index moving in a range, options sellers may have had an opportunity to make some gains, but with the low IV (Implied Volatility), even they weren't left happy.

However, stock-specific action was seen across the board. IT earnings kept traders and investors on the edge as multiple companies missed their estimated earnings.

Coming to models hosted on Investmint, ‘Back Up’ and ‘Alpha Ally’ were two of our best-performing models, giving a weekly return of 2.18% and 0.41%, respectively.

But interestingly, Alpha Ally, the second best-performing model for this week, has two worst-performing stocks in it, JSW and ABB. Both these stocks were down by (-7.32%) and (-6.61).

It is situations like these when the power of diversification becomes evident to you. Even though you had two bad-performing stocks, the model with 20 stocks, ended in the green.

Leaders & laggards

TWL or Titagarh Wagons Limited, involved in manufacturing freight and passenger wagons, coaches and locomotives, is the top performing in our models with a positive return of 20.75%. The stock gave a breakout after veteran investor Madhusudan Kela-backed Mahima Stocks Pvt. bought a 1.67% stake in the company.

AUROPHARMA - The next performer is Aurobindo Pharma, which also happens to be the second-largest pharma company in India in terms of consolidated revenues, and saw a rise of 12.75% as sector-specific tailwinds helped propel the stock price.

JSL or Jindal Stainless Limited, which is India’s leading manufacturer of stainless steel products, saw a decline of 7.32% month to date in our Alpha Ally model.

ABB, another stock from the same model, which is involved in the manufacturing of transformers, motors and other electrical products, declined 6.1%.

In other news

JP Morgan expresses concerns over the Indian IT sector’s earnings - In a recent report, JP Morgan said that multiple Indian IT companies are at risk of multiple downgrades due to a decline in their revenue.

Indian traders are leaving stock markets as WFO picks up- The total number of active Demat account users is on a decline. 53 lakh users seem to have left the stock markets in the last 9 months, while this could be attributed to a sideways or downward market, more companies are calling their employees to Work-From-Office which could also have made an impact. Lastly, with lucrative interest rates in fixed-income, investors must be shying away from the markets.

Apple's India Stores Highlight Its Ambitions in the Country -This week Apple opened its first two stores in India, the company aims to diversify its supply chain and boost sales in a country where it has struggled to gain traction so far.

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With that said, let’s hope the upcoming week is not as bad as the summer heat is across the nation. See you all back on Monday.

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