The latest analysis and commentary by stock market guru SP Tulsian of sptulsian.com on what is moving the markets today.

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NSE

Tyre stocks

> Explosive growth seen in two-wheeler and passenger vehicle in this last three years

> Tyre makers have raised the huge capacity by putting up the new plant, increasing the capacity at the existing location

> The present situation when the things are seemed to be a little lull at the OEMs I think the government needs to be proactive because China is heavily dumping by subsiding the cost of production at their end.

> It is very much essential and you need to protect your automobile industries and the infrastructure industry like cement and steel."

> "I think more measures need to be initiated by the government but this is a good beginning and I hope this process will continue."

> Keeping a positive view on the tyre stocks and for the last one month or so largely because the Brent has softened to about USD 65 from 75.

> Be selective and one can look to buy MRF and Ceat tyres at this stage.

Edelweiss Financial Services

> Edelweiss is seen to be more a high beta stock. It widely fluctuates upside, downside so probably may not be for the investors those who wish to have the stable NBFC in their portfolio

> But it is a very good stock for people those to wish to trade as an investor, buy, keep a one month view, look for 5-7 percent return and then exit.

> Current level is seen to be the right entry point for the short-term investor those who look to play high beta stocks.

> My choice will be on the other NBFCs maybe like Shriram Transport Finance Company, Cholamandalam Finance or M&M Finance kind of stocks.

Axis Bank

> I am not keeping negative bias on the Axis Bank

> Compared to the other banks like ICICI Bank, State Bank of India (SBI) and Federal Bank, Axis may not be an outperformer.

> You can keep the stock in the portfolio for the moderate gains. ICICI Bank, State Bank of India (SBI) and Federal Bank are better choices over Axis Bank by us in the present scenario.”

DHFL

> Some derating is left in the stock. One should understand that the company now seems to be a derailed company, fractured financial, things seem to be negative

> I don’t think that there is any point in taking a call in the stock. As an investment, I will not advise looking into the stock even at the current level.

First Published:Jun 26, 2019 10:14 AM IST