Has tax cut fuelled market rally run its course, Bharat Forge finds going tough; 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.

Irrational exuberance—Has the tax-cut fuelled market rally run its course?

Economists and market strategists have been shouting from the roof-tops that Indian markets are over-valued and that they have run far ahead of the fundamentals. But those with the money to invest seem to think otherwise. Who is right is a question that time will answer. Till then, here’s our take on whether this rally still has legs.

Chart of the Day | The one chart that shows you the small width of the market rally

The big question every market observer is asking today: why are the markets touching new highs when the economy is in such dire straits? But here’s a look at the rally itself, in our Chart of the Day , which compares how the Sensex has moved versus the market capitalisation of its constituents.

Why the Bharat Forge stock is still not attractive enough

Bharat Forge is finding the going tough due to a difficult operating environment for the global and domestic automobile industry. The company posted a significant decline in volume that led to a 25 percent slump in net revenue in Q2. This weakness is likely to continue in FY20. Read here for our analyst’s take on its prospects.

Why we continue to repose faith in this high-quality NBFC

This NBFC has been our high conviction pick and the stock has outperformed since the time we recommended it in February this year at a price of Rs 515. We believe that this is one stock that investors must consider while building a high quality portfolio. While the expensive valuation caps the near term upside, read here to know our analyst’s view on how investors should look at this stock.

Our Technical Picks (Click on individual stocks for recommendations)