Street signs: Short covering to spur gains, Escorts stock, and more

The remaining part of October could be good for investors if historical data is anything to go by

The October story 

Most global markets have had a rough start to the month. However, the remaining part of the month could be good for investors if historical data is anything to go by. An analysis by Morgan Stanley says October is a positive month for risky assets. “It often starts badly, but ends strong. Between 1998 and 2017, the average return over the first 10 days of October was a negative 0.4 per cent. The rest of the month was 2 per cent,” the brokerage said in a note.

Samie Modak

Escorts: Investors turn positive

After a steady fall of almost 50 per cent – from Rs 1,000 to Rs 550 – Escorts, one of the biggest domestic tractor manufacturer, is again beginning to see investor attention.

According to some fund managers, it would be a good long-term buy, given the strong prospects of tractor sales after the government’s push towards raising farm incomes, and good monsoons. The stock closed at Rs 601 on Friday.

Joydeep Ghosh

Short covering to spur gains

Markets are likely to extend gains on the back of unwinding of more short positions, believe analysts. The Nifty could move towards 10,600-10,650 points in the coming days. However, volatility may persist as quarterly results pour in and global cues dictate market direction. “Traders can consider taking stock-specific bets and avoid aggressive trades on the Nifty. Several stocks where valuations are now attractive can be considered. Private banks and metal stocks look attractive,” said one analyst.

Ashley Coutinho