Coffee Day sale of non-core businesses, rise in July industrial production; all this and more on Moneycontrol Pro

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  • Industrial production increased by 4.3 percent in July from a year ago, but that is no reason to celebrate

  • The bulk of the selling in the Coffee Day Enterprises stock seems to be over, with the shares hitting the upper circuit for the last three days

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Rise in July industrial production not a sign of a turnaround

Industrial production increased by 4.3 percent in July from a year ago, but that is no reason to celebrate. Nor does it indicate that industrial growth has turned the corner. For starters, the increase in the growth rate is partly because of the base effect. The index of industrial production dipped in July 2018, which gave the July 2019 growth rate a boost. That favourable base holds true for manufacturing as well. Click here to read more on why the latest IIP numbers should be interpreted with caution.

 Coffee Day sale of non-core businesses, rise in July industrial production; all this and more on Moneycontrol Pro

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Does Coffee Day’s sale of non-core businesses make it investment-worthy?

The bulk of the selling in the Coffee Day Enterprises stock seems to be over, with the shares hitting the upper circuit for the last three days. The Coffee Day Enterprises stock crashed after its promoter VG Siddhartha’s death in July this year. The promoter’s debt and its links to the company came into the spotlight. Although the debt at the company level was public knowledge, the promoter’s death meant urgent action was needed to tackle it. Pushed to the wall, the Coffee Day Enterprises seem to have realised that a surgical pruning of unrelated businesses is necessary. So, is the worst over for the company and have investors discovered value in the stock? Click here to read more.

GuruSpeak: Concentrated betting–How it went wrong for me

Should you spread your bets or put all eggs in one basket? There are cogent arguments in share market literature for both concentrated and diversified portfolios. Both strategies have worked in certain periods of time and both have risks as well. In this story, veteran investor Alok Jain recounts his tryst with concentrated investing, how it went wrong and the lessons he learnt. Click here to read more.

This consumer durable stock stays immune to market volatility

We all know there is a consumption slowdown and that is reflected in share prices as well. However, not all consumer-oriented stocks are prone to market volatility. There is a consumer durables maker (and retailer) which has done well in recent times. Its fundamentals are strong; sales and profits by 20 percent and 17 percent respectively in the first quarter. The firm is focusing on increasing its geographical spread, investing to build capacity and introducing new products regularly. It is also entering new segments such as kitchen appliances. The catch? Valuations are lofty. Click here to know which is this stock and what investors should do.

Picks from our technical analysts

ITC: The consumer sector is not doing well and ITC’s stock is currently showing sideways movement. This trend is expected to continue in the near future. Click here for an option strategy to profitably trade ITC shares.

Mindtree: This firm is among the weaker stocks in the IT space. It underperforms NSE IT on a relative strength chart. Click here to know how to trade its futures.

Updated Date: Sep 13, 2019 11:40:21 IST