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Mumbai: Kotak Institutional Equities said most mid-cap and small-cap stocks are still trading at 'full-to-lofty' valuations and well above their fundamental values despite the sharp correction in recent weeks. The brokerage said many low-quality stocks may still have a 'long way to fall'."We are not sure if the correction marks a reversal of the market to fundamentals and numbers from sentiment and narratives," said Kotak's analysts including Sanjeev Prasad in a client note.Till Wednesday, the sharp selloff in mid-cap and small-cap stocks resulted in 50 stocks with market capitalization exceeding ₹500 crore tumbling between 25% and 65% in March so far. Around 130 stocks slumped 20% to 25% in this period. Mid-cap and small-cap stocks, however, rebounded on Thursday in a relief rally.Kotak said the recent correction in broader markets is quite small in the context of the large returns of the past year. "We note that 61% of mid-cap. and 63% of small-cap. stocks have given more than 30% return in the past year even as the bulk of the mid-cap and small-cap stocks have given negative returns in the past one month," said the firm's analysts.The brokerage said valuations of the majority of the mid- and small-cap stocks are 'quite expensive'.Kotak said high return expectations and strong returns in the past three years may have reinforced their direct participation in mid- and small-cap stocks. "We are not sure if there will be any change in the investment behaviour and optimistic view of non-institutional investors as a result of the recent correction and cautionary statements of the regulator," they said.

NEW DELHI: Electric vehicle (EV) makers will need to ensure a high degree of localisation for the models subsidised under the Electric Mobility Promotion Scheme (EMPS). They also need to provide a three-year or 20,000-km comprehensive warranty to two-wheeler buyers — and an 80,000-km warranty on three-wheelers — to be eligible for the scheme.EMPS replaces the Faster Adoption & Manufacturing of Electric Vehicles in India (FAME II) programme.“The manufacturers’ comprehensive warranty will have to cover the EV battery, the most crucial component of the vehicle, besides ensuring that there are adequate facilities for after-sales service for the life of sold vehicles,” a senior government official told ET.Reduced IncentivesWhile FAME II also had a three-year mandatory warranty component after an amendment, it was silent on after-sales service. It also did not say whether the manufacturers’ comprehensive warranty would include the battery.Like FAME, EMPS will also subsidise sales of EVs. But the incentives on offer and the categories being supported have been drastically reduced.FAME II started in 2019 and will run until the end of this month. EMPS is being seen as a special bridge scheme that will run for four months from April 1 to minimise disruption in EV sales due to the FAME programme lapsing.EMPS will likely be the precursor to a broader scheme for electric vehicles that’s expected to be announced in the budget for FY25 after the elections, officials indicated.According to the EMPS policy document, vehicles that are manufactured in India will be eligible to be subsidised. “EMPS is different from FAME II, a phased manufacturing programme, allowing EV makers to import parts while they localised in the interim,” a second official said.In the new scheme, companies will need to ensure they have component manufacturing in place before claiming any sops. This has been done to prevent any possible misuse, he said.According to the document, only cells and the battery management system can be imported. The traction battery pack, inside which these components go, is to be assembled domestically.Further, all other components such as the power and control wiring harness, wheel rim integrated with hub motor, and traction motor controller need to be manufactured in India.

Average returns by 27 stocks in the S&P BSE Capital Goods index are nearly three times higher than those given by S&P BSE Sensex in the financial year 2024 so far. Out of these, seven stocks have given multibagger returns of up to 458% during this period and yet trading at a nearly 30% discount from their 52-week high.The returns by S&P BSE Capital Goods index in FY24 so far have been 64% versus 23% by S&P BSE Sensex. Smallcap counter Transformers & Rectifiers (India) tops the charts with 458% returns in FY24 so far. It was trading at a discount of 19% from its 52 week high. Incorporated in 1994, Transformers & Rectifiers manufactures a wide range of transformers, which conform to the quality expectations of both the domestic and the international market. Ace investor Madhuri Madhusudhan Kela has 3.91% stake in the counter. In the current quarter the stock has gained 38% while its highest returns have come in the June 2023 quarter where the stock has appreciated by 73%. The others are Shilchar Technologies (381%), Advait Infratech (330%), HPL Electric & Power (244%), Bharat Heavy Electricals (BHEL, 221%), Sanghvi Movers (188%) and Action Construction Equipment (166%). 108503080For Shilchar Technologies, returns in Q4FY24 so far have been 43.45% while highest returns came in the September quarter at 67.13%.Advait has delivered 101% returns so far in this quarter which is also its highest in the last four quarters.HPL Electric's highest returns in the last four quarters were in the September quarter at 63.96% while in the current three-month period so far, the returns have been to the tune of 16%. State-run BHEL has given 16% returns in this quarter but its highest returns in FY24 was 49.33% in the September quarter.Sanghvi Movers Q4FY24 returns so far have been 23% while maximum returns of 41.41% were accounted for in the September quarter.Action Construction's Q4 returns stand at 30.63% while top returns of 40.55% was reported in the September quarter.Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking remains positive on BHEL for a target of Rs 260+. The stock is in an uptrend and taking support at 50-dma at Rs 220, he added.Analyst Aamar Deo Singh, Senior Vice President-Equity, Commodity & Currency at Angel One, said that BHEL appears to have made a short-term top with the stock losing over 12% in the week so far. The stock has strong support around the Rs 180-200 which could offer good buying opportunities whereas resistance is seen around the Rs 250-260 zone, he added.He warns against the overall market sentiments which have been dented amid profit booking coupled with mixed global and domestic trends. (Inputs by Ritesh Presswala)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

India's Petroleum Ministry on Thursday announced that prices of petrol and diesel in the country would be reduced, starting Friday, March 15, after oil marketing companies (OMCs) decided to revise prices across the country. "Oil Marketing Companies (OMCs) have informed that they have revised Petrol and Diesel Prices across the country. New prices would be effective from 15th March 2024, 06:00 AM," the Ministry said in a post on X (formerly Twitter). After the price revision goes into effect, petrol in the national capital is set to cost ₹94.72 per litre, down from ₹96.72 per litre, while prices in Mumbai, Kolkata and Chennai are set to drop to ₹104.21 per litre, ₹103.94 per litre and ₹100.75 per litre, respectively.Diesel prices are set to drop to ₹87.62 per litre in the national capital, while Mumbai, Kolkata and Chennai will see prices drop to ₹92.15 per litre, ₹90.76 per litre and ₹92.34 per litre, respectively."Reduction in petrol and diesel prices will boost consumer spending and reduce operating costs for over 58 lakh heavy goods vehicles running on diesel, 6 crore cars and 27 crore two-wheelers," the Petroleum Ministry added in its post.

Four states accounted for over half of the country’s renewable energy potential, with Rajasthan having the highest share, followed by Maharashtra, Gujarat and Karnataka, according to data released by the Ministry of Statistics and Programme Implementation Thursday.“The geographic distribution of the estimated potential of renewable power shows that Rajasthan has the highest share of about 20.3%,” the ministry stated in the Energy Statistics 2024.Maharashtra, Gujarat and Karnataka have a 32% share.India had utilised just 8% of its total estimated renewable power potential of 2,109.7 GW in FY23, with nearly a quarter of small hydro and biomass energy in place compared to the potential.An ET analysis found that wind power was the most underutilised resource, with just 3.7% of installed capacity compared to the potential. The share of installed capacity in terms of solar was higher at 8.9% and much more significant at 35.1% for large-hydro projects.“India’s Energy mix has been seeing a shift from more conventional resources of energy to renewable sources,” the report stated.India plans to increase its renewable capacity installation to 500GW by 2030, by which time it will have utilised nearly 40% of its potential in solar power and just 10% of the potential in wind energy. “The financial year 2022-23 has witnessed a growth of 12.20% over last year in the installed capacity of RES (Renewable Energy Sources, other than Hydro) under utility; while that of thermal sources grew only at 0.49%,” it further added.Wind, solar, and large hydro had the highest potential, with the wind having a power capacity of 1,163.9 GW and a solar power potential of 749 GW.

Nifty on Thursday ended 149 points higher to form an Inside Bar candle on the daily chart as it consolidated around the lower half of the previous session's candle on the daily timeframe. The positive chart pattern like higher tops and bottoms is still intact, as the Nifty managed to make a new higher swing low of 21,905 levels so far on Wednesday. As long as the last higher bottom of 21,860 is protected, the chances of significant downward reversal could be doubtful, said Nagaraj Shetti of HDFC Securities.Open Interest (OI) data showed the call side displayed the highest OI at 22,400, followed by 22,500 strike price. On the put side, the highest OI was observed at the 22,000 strike price.What should traders do? Here’s what analysts said:Rupak De, LKP SecuritiesNifty has closed below the 21EMA with a bearish crossover in the RSI. However, bulls managed to push the Nifty back into the rising channel by the session's end, suggesting a possibility of a bullish trend reversal. Looking ahead, the Nifty could encounter resistance in the 22,200-22,250 zone. Clearing the resistance at 22,250 might propel it towards 22,500 in the near term. Support levels are situated at 22,050-22,000.Jatin Gedia, SharekhanOn the daily charts, we can observe that Nifty has held on to the support zone of 21,900 – 21,860 where support parameters in the form of the 40-day average and the previous swing low is placed. On the upside, the key hourly averages placed in the zone of 22,200 – 22,240 acted as a resistance and restricted further upside. In the current bounce back if Nifty manages to overlap with the level of 22,256 then the current fall shall turn out to be a corrective fall. Thus, it’s crucial how the structure pans out over the next few trading sessions.Tejas Shah, Technical Research, JM Financial & BlinkXNifty has formed an Inside Bar pattern on its daily chart. An Inside Bar pattern is formed when the price trades within the high and low range of the previous day, making the candle an inside day or an inside bar. So we need to wait and watch, till the high (22,205) or low (21,917) of Wednesday’s daily candle is taken out for further direction on Nifty in Thursday’s trading session. Support for the Nifty is now seen at 22,000 and 21,800-850 levels. On the higher side, an immediate resistance for Nifty is at 22,250-300 levels and the next resistance is at 22,500 Mark. Overall, today’s weekly closing above or below the mentioned support of 22,000 will give direction for the coming week.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Vedanta's plan to demerge its businesses into separate entities could face hurdles from its minority shareholders and creditors, according to a report. On September 29, the mining conglomerate announced plans to demerge five of its key businesses, including aluminium, oil and gas, and steel, into separate listed entities. "We maintain our view that VEDL's (Vedanta Ltd's) planned demerger of its other businesses could face major hurdles from minority shareholders and/or creditors, which may delay or derail the deal. There have been few updates on the demerger progress ever since it was announced in September 2023," Credit Sights, a FitchSolutions Company, said in its latest report. The report further said it will be a challenge for Hindustan Zinc Ltd (HZL) -- a Vedanta Group company -- to proceed with its proposed demerger as the company will be "unsuccessful" in getting the required 75 per cent shareholders' approval. Vedanta and the Centre, which owns a 29.5 per cent stake in HZL, have been at loggerheads on a couple of matters related to Hindustan Zinc in the past year, the report said. "In the first place, we felt that a demerger of VEDL will not fundamentally and significantly address VRL's (Vedanta Resources Ltd) ability to service its debt obligations, and will in fact complicate VRL's corporate structure, something the company has spent a decade simplifying. "We acknowledge the demerger could improve VEDL's overall equity fundraising ability and valuations and simplify price discovery. We are cognisant that cash leakage via dividend upstreaming is still unchanged, and there is still a lack of clarity of how VEDL's share pledge on the January 2027 and December 2028 bonds will be after the demerger and on how assets and debt liabilities will be apportioned among the various business units," the report said. VRL owns 68.11 per cent of its Indian subsidiary Vedanta Ltd, which has significant operations in oil and gas, zinc, iron ore, aluminium, power and copper in India.