India Strategy - Exploring ‘Buy’ Opportunities Across The Sentiment Spectrum Of Mr. Market: ICICI Securities
A financial trader speaks on a fixed line telephone while monitoring data on computer screens. (Photographer Jasper Juinen/Bloomberg)

India Strategy - Exploring ‘Buy’ Opportunities Across The Sentiment Spectrum Of Mr. Market: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Long-term growth prospects as ‘perceived’ by the collective wisdom of investors (allegorised as Mr. Market) are embedded in stock prices which leads to major fluctuations in stock prices whenever those perceptions change.

Change in perception regarding long-term prospects due to short term events provides maximum opportunities in investing (examples – March 2020 market wide sell off; Titan in 2015-16; currently the second wave of Covid-19).

Using our proprietary market implied long term growth value framework on the NSE200 universe stocks, we classify fundamentally sound investible stocks with upsides (Buy rating by our analysts) into segments based on Mr. Market’s various degrees of pessimism/optimism.

Given the focus on long term growth which depends on sustainability of growth, we have preferred stocks with relatively lower environmental social and governance risk or the riskier ones showing improvement in their score.

Click on the attachment to read the full report:

ICICI Securities Strategy Alternate View Mr Market.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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