Jefferies flags high valuations in India and shifts focus to defense and cement stocks.

Welcome Back Investor!

Gold just wrapped up its worst week in six months, tumbling 3.3% to $3,213 an ounce as easing U.S.-China trade tensions and a strengthening dollar dulled its safe-haven shine. With tariffs temporarily slashed and inflation data softer than expected, investors shifted toward riskier assets, leaving gold out in the cold. Indian dealers offered steep discounts, and Chinese premiums stayed firm, signaling that bargain hunters are far from done.

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Today’s Market Menu

▪️ Focal Point: Jefferies' new power picks revealed: BEL & Ambuja Cements

▪️ Markets

▪️ Everything else you need to know today

▪️ Phycology: Buffett’s 10 Timeless Rules for Picking Winning Stocks

▪️ Stock Screener to up your game

FOCAL POINT

Jefferies' new power picks revealed: BEL & Ambuja Cements

📉 Jefferies Sounds the Valuation Alarm

India's stock market is heating up again, warns Jefferies. With the MSCI India Index now trading at a 23x P/E, nearing its September 2023 highs, the brokerage expects potential pullbacks and is tweaking its model portfolio accordingly.

It’s trimming exposure to banks and pivoting toward two strategic plays:

• BEL - Riding the Make-in-India wave, BEL offers strong earnings visibility amid rising defense spend.

• Ambuja Cements - Backed by the Adani Group, it’s positioned for a margin rebound and benefits from easing competition.

MARKETS

The markets ended slightly in the red today, with the Sensex slipping 200 points (-0.24%) and Nifty 50 down 42 points (-0.17%), signaling mild profit booking. However, the Nifty Midcap 100 outshined, rallying +0.94%, as investors turned bullish on broader market bets. Bank Nifty stayed flat, reflecting caution in the financial space. Overall, the sentiment was mixed, with midcaps stealing the show while heavyweights took a breather.

_{Closing figures as on 16.05.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ Bharat Electronics: Jumped +3.85%, defense sector buzz after Jefferies' bullish call.
✅ Bajaj Auto: Revved up +1.88%, auto momentum stays strong on sales optimism.
✅ Tata Consumer: Gained +1.81%, FMCG strength shining through in volatile markets.
✅ Adani Enterprises: Climbed +1.39%, steady buying as investor confidence rebuilds.

Top Losers

🔻 Bharti Airtel: Took a sharp hit, down 2.85%, heavy profit booking after recent gains.
🔻 HCL Tech: Dropped 2.13%, tech sentiment under pressure despite strong fundamentals.
🔻 SBI: Slipped 1.94%. likely a correction post a steady climb in previous weeks.
🔻 JSW Steel: Down 1.59%. metal stocks feeling the heat amid global slowdown fears.

NIFTY 500: Mixed Sentiment

FROM THE FRONTIER

Everything else you need to know today

📉 Reshuffle: Singtel offloads a $1.54B stake in Bharti Airtel, trimming its holding to 28.3% to realign with Bharti Enterprises.

⚠️ Red Flag: IndusInd Bank flags a ₹674 Cr error in its microfinance books after a whistleblower alert. The glitch raises fresh questions on internal controls and transparency.

⚖️ Trouble: NCLT issues notice to Gensol Engineering over a ₹510 Cr insolvency plea filed by IREDA. The next big hearing is locked in for June 3, stakes are high.

🔄 EVs & Telecom Gain Traction: Mutual funds made bold moves in April, scooping up 2.07 crore shares of Ather Energy post-IPO and adding 34.09 crore shares of Vodafone Idea. On the flip side, they trimmed exposure to defensives like ITC (6.59 crore shares sold) and Bharat Electronics (2.74 crore shares sold). This portfolio reshuffle signals a pivot toward high-growth bets in EV and telecom, while booking profits in overvalued or saturated plays.

ONEZERO-F ACADEMY

Buffett’s 10 Timeless Rules for Picking Winning Stocks

In a world obsessed with hot picks and market noise, Warren Buffett’s classic 10-step formula, a must-know for every smart investor:

• Understand the business - If it’s too complex, skip it.

• Consistent history - Steady performance beats wild pivots.

• Long-term prospects - Look for durable competitive advantages.

• Honest, smart management – Back leaders who act like owners.

• Attractive price - A great business isn’t a great buy at any price.

• High ROE - Efficient use of capital is key.

• Low debt - Less debt, more resilience.

• Strong profit margins - Pricing power signals strength.

• No constant reinvention - Stability over chaos.

• Simple model - If you can’t explain it easily, avoid it.

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STOCK SCREENER TO UP YOUR GAME

Cup and handle

by Nithyanandhan

Down from 52w high AND
Market Capitalization > 1000 AND
Current price < 500 AND
Current price > DMA 50

Thanks for reading.

Until Sunday with our Startup Special!

Mohit & the OneZero-F team

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