ArcelorMittal's shares up 2.5%, demand recovery to remain sluggish in near term; all this and more on Moneycontrol Pro

Finally, some great news! India’s fastest-growing financial subscriptions service, Moneycontrol Pro, is available both on the website and mobile apps.

Moneycontrol Pro offers curated markets data, independent equity analysis, insights into investment styles and exclusive trading recommendations. In sum, all the information you need for wealth creation.

Why ArcelorMittal should take its IBC prize Essar Steel public

ArcelorMittal’s shares rose by 2.5 percent on Friday, the day the Supreme Court cleared its acquisition of Essar Steel. That reaction may seem optimistic, since its acquisition coincides with a rather difficult period for the global steel industry. Demand conditions have turned weak and so have steel prices even as the uncertainty due to the US-China trade war continues to linger. While Essar Steel is a feather in ArcelorMittal’s cap the latter has its task cut out and its balance sheet will feel the strain of the acquisition. But its investors have good reason to be optimistic. Read more.

Representational image

Was consumer spending in 2017-18 really lower than in 2011-12?

A survey conducted by the National Statistical Office (NSO) between July 2017 and June 2018 says average real (inflation-adjusted) monthly consumption spending per head fell by 3.7 percent as compared to 2011-12, according to documents leaked to Business Standard newspaper. While demonetisation and Goods and Services Tax (GST) could plausibly have led to lower demand, would they affect it so much that consumption expenditure in 2017-18 would be less than what it was six years ago? How do other macro and corporate data square with this survey? Read more.

Britannia: Demand growth recovery may take up to 3 quarters

Our in-house research team had picked up Britannia as part of our Diamonds in the Dust series on 22 August 2019. Since then, Britannia has gained 34 percent. Now, its September quarter earnings suggest that demand recovery would remain sluggish in the near term. The company has pruned expenses which is reasonable given the slowdown, despite the steady offtake for new launches and consistent market share gains. So what should investors do? Read more.

Where is the comfort in large cap IT?

Does the traditional safe haven of IT stocks continue to offer shelter amidst the many headwinds ranging from the global uncertainty stemming from trade wars to a severe domestic slowdown? Are the stocks attractive in spite of the uninspiring performance of IT companies in the past year? We feel large cap IT still offers pockets of safety, but investors have to be selective. Read more.

Picks from our technical analysts (Please click on security name to access recos)

Pidilite
Colgate-Palmolive
ONGC
AU Bank

LifeHacks | Five apps to help manage your personal finance from your smartphone

LifeHacks is a series that offers readers vital tips to help live, work — and play better. In the third installment, we tell you how managing your personal finance can be done right from your smartphone. From keeping track of your expenses to making investments, there are apps and services that will help you take care of most of your personal finance and money management needs. Read more.