This snippet introduces The Economic Times Markets (ETMarkets) weekly feature, which filters the Indian stock market using quantitative and fundamental metrics.
By combining Refinitiv’s Stock Reports Plus automated scores with institutional analyst sentiment, this screen targets high-probability investment setups based on a specific, dual-layered framework:
1. The Quantitative Filter (Stock Reports Plus)
A stock must achieve a perfect 10 out of 10 average score. This score isn’t subjective; it is an aggregated, quantitative evaluation derived from five distinct investment vectors:
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Earnings: Analyzes the consistency, quality, and surprises in a company’s quarterly earnings data, alongside recent analyst revisions.
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Fundamentals: Evaluates balance sheet health, profitability ratios (like ROE and ROCE), cash flows, and debt levels.
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Relative Valuation: Compares current valuation multiples (such as P/E, P/B, and EV/EBITDA) against historical averages and industry peers to ensure it isn’t overvalued.
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Risk: Measures the stock’s volatility, beta, and historical drawdowns to ensure stable price behavior.
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Price Momentum: Tracks technical indicators and moving average crossovers to confirm the stock is in a structural uptrend.
2. The Human Sentiment Filter (IBES)
Even if a machine rates a stock a perfect 10, the feature applies a second layer via the Institutional Brokers’ Estimate System (IBES). The stock must hold a consensus “Buy” or “Strong Buy” rating from institutional equity analysts who actively cover the company, ensuring fundamental reality aligns with algorithmic trends.
