Rally in low RoE stocks - winners and losers

Some stocks may see gains fizzle out on subdued fundamentals, others make for good investment ideas

BSE 200 index and Sensex have run up 18 per cent and 15 per cent, respectively, from their recent lows of December 26, 2016, on the back of domestic and global factors. Domestically, the latest December quarter numbers for most companies were better than subdued expectations and most macroeconomic indicators too did not show any significant deterioration on account of note ban. Bharatiya Janata Party's win in Uttar Pradesh lifted the markets, which are now in bull zone. Global markets, too, cheered US President Donald Trump's economic strategies and clarity on lending rate hikes by the US central bank. But,