Tale of the Tape 

Hiya all.

New day new all-time highs for Nifty (+0.8%) and Sensex. Midcaps were flat, while Smallcaps (-0.5%) ended in the red. PS - the Stocktwits India Momentum Index also closed down -0.5%. The advance-decline ratio was evenly split. Check out the Stocktwits Sentiment Meter:

It was a wave of green across sectors. Auto (+2.3%), Metals (+2.1%) and FMCG (+1%) were the top winners.

Buy ratings are starting to disappear from Indian markets. Read our top story below for the juicy details, courtesy inputs from Bloomberg.

This largecap fashion retailer may gain a further +18% from current levels after TRIPLING in the past year. More details below.

KRN Heat Exchanger IPO is open for subscription. Meanwhile, PB Fintech was volatile AF after buzz surrounding its healthcare foray became public. More details below. 

Vedanta jumped +5% after it said it would consider its fourth interim dividend for FY25 on October 8.

Paytm (+2%) was in focus after 47.2 lakh shares (0.8% equity) changed hands in a big block deal. The buyers and sellers were not immediately known.

Larsen & Toubro (-1%) was in focus after HSBC downgraded the stock and cut its target price to Rs 3,500 p/sh vs Rs 3,900 p/sh earlier.

Bajaj Housing Finance (+3%) snapped its 6-day losing streak.

Gensol Engineering (+3%) gained after its promoter hiked their stake to 21.17%. PS - this snaps a 9-day losing streak for the stock!

Krsnaa Diagnostics rallied +4% intraday after buying a stake in Apulki Healthcare.

Reliance Power was locked in a +5% upper circuit for a seventh straight trading session in a row!

Here are the closing prints:

Market
Not A Good Sign For Stocks?

Everyone says India’s markets have become overstretched and that the euphoria is too damn high. Today, we’re going to take a look at how even brokerages are having a tough time issuing buy calls. Here’s what you need to know, courtesy inputs from Bloomberg.

1) The number of stocks in the Nifty 200 Index with a consensus ‘buy’ rating (aka where the average analyst rating was bullish) was just 74 in FY24. That is the lowest they’ve been in a decade. But what’s worse is that it has dropped further to 72 in Q1FY25 and just 61 in September so far. Clearly, analysts are having a tough time agreeing on future outlook for a majority of stocks. PS - the highest-ever number of consensus buy ratings was 119 stocks back in FY19. 

2) This means that nearly 129 out of the Nifty 200 stocks now carry a consensus ‘hold’ rating. This is in sharp contrast to even FY23, where 114 stocks were ‘buy’ and just 77 were ‘hold’ . Yes, crazy valuations and worries over lower profits have played a big role in this. 

3) On the flipside, it’s not all doom and gloom. After all, only 5 stocks out of the Nifty 200 Index have a consensus ‘sell’ rating. Also, a large number of hold reccomendations means that experts still believe the rally has some ways to go. Remember, in this never-ending bull rally selling too early means losing out on a LOT of upside.

TL;DR: Less than a third of Nifty 200 stocks have a consensus buy rating. This doesn’t mean you should panic. Instead, analysts say you should only buy on the dip and continue to hold your winners for as long as this bull run continues!

Stocktwits Specials
Buy The Dip In Defence Stocks?

Most defence stocks are down 25-30% from their all-time highs. Experts say this could be a “golden opportunity” to add select defence stocks at current levels. Find out which are these stocks and their 12-month target prices in our latest video.