In stock market parlance, "meme stock" was certainly the word of the year. Coined to mean those stocks that gain sudden popularity on the internet with resultant high prices, it was used to derisively describe the behaviour of retail traders globally who entered the market in huge numbers in the two Covid-19 years. A recent study, "Market Concentration and Retail Participation in India", by the National Stock Exchange economics team led by their chief economist Tirthankar Patnaik shows unlike these impressions, the retail investors, at least in India, have not performed inconsistently.
Stock market volatility is increasing along with prices. How should you use leverage in such situations?
Benchmark equity indices Sensex and Nifty closed higher by more than half a per cent on Wednesday following buying in IT, financial and oil stocks after the RBI slowed down the pace of interest rate hikes. Ending its two-day slide, the 30-share BSE Sensex rebounded by 377.75 points or 0.63 per cent to close at 60,663.79 with 24 of its constituents posting gains. The broader Nifty of the NSE spurted by 150.20 points or 0.85 per cent to settle at 17,871.70, riding on a rally in Adani Enterprises, Adani Ports and HDFC Life.
The NSE Nifty ended at 5,002, up 16 points. The market breadth was negative -- out of 2,868 stocks traded on the BSE, 1,512 declined, 1,246 advanced on Thursday.
'Rhetoric and chest-thumping are running high on India's recent growth record.'
'But will the giant waves developing elsewhere allow us to sail smoothly into fair winds?' asks Debashis Basu.
A look at 10 things that investors need to understand and follow to avoid common investing blunders in an overheated market.
Conflicting views on Coal India (CIL) might leave investors confused. The bullish perspective that India has strong power demand (and also high steel production) means high demand for coal. As CIL is the monopoly producer of coal -- supplying over 80 per cent of the domestic requirement - the public sector undertaking should be a beneficiary of the rising power demand.
The rout in Adani Group stocks after US-based short seller Hindenburg Research released a report on January 24 has sparked a rebound in trading activity this month. The average daily trading volume (ADTV) for the cash segment (both NSE and BSE combined) so far in February stands at Rs 59,346 crore, and is around 15 per cent more than the previous month's tally of Rs 51,844 crore, which was the lowest in six months. The ADTV for the futures and options (F&O) segment rose to a record Rs 204 trillion (notional turnover) against Rs 202 trillion in January.
Expect corporate houses to raise funds via IPO in second half of this year.
Will the markets crash now? Is it best to sell your stocks at these levels and get out of the stock market? Or do you think the fears are unfounded and markets will rise further? \n
We remain at the mercy of the global economic climate.
The Survey also said that the borrowings by banks have increased significantly.
'Investing in a factor-based fund can be beneficial provided you have chosen the right factor.'
'Das is friendly, but he finally does what he does. The quality of engagement is very good.'
The benchmark BSE Sensex and Nifty closed marginally higher in a volatile trade on Tuesday as gains in FMCG, power and energy stocks helped the indices extend gains for a fifth straight day. The 30-share BSE benchmark ended 20.86 points or 0.04 per cent higher at 58,136.36 with 16 of its constituents ending in the red. During the day, it hit a high of 58,328.41 and a low of 57,744.70.
The S&P BSE Sensex has dipped five per cent, thus far, in CY15.
Grey market deals, which are viewed as a sign of market prosperity by investors, are done on the expectation that the shares will outperform the IPO process when they list on the market.
But much depends on govt action & global economy; Sensex gains in 2070 the biggest in five years
Market experts on why the bulls will be on the rampage first thing on Monday after the scrapping of enhanced surcharge on FPIs and other measures to ease the systemic liquidity squeeze and boost demand. Prasanna D Zore reports.
Of these 26, Bajaj Finance, Associated Alcohols and Breweries, Garware Technologies, Filatex India, Tasty Bite Eatables, Aarti Industries and GMM Pfaudler saw an over 10-fold surge in price since 2014.
The one common theme across companies that have rewarded shareholders is consumption.
When global investors look at India, they are interested but they are also a bit nervous
Titan, NCC, Delta Corp, Karur Vysya Bank, Aptech, and Jubilant Life Sciences are among stocks in Jhunjhunwala's portfolio that have taken a severe hit, falling more than 50 per cent during the period.
The unprecedented fall in stock market had numerous reasons backing it up. As the market gets bullish again, it is wiser to be disciplined and patient with your investments.
A sharp fall in the price of Bitcoin and other cryptocurrencies is another hard blow to the already sinking cryptocurrency market in India. Global and domestic prices have been on a downward trail since November last year when Bitcoin prices hit a peak of close to $68,000 in international markets. The recent past has seen a much sharper fall in the price of the leading cryptocurrency, Bitcoin.
We are at the cusp of something big today and retail investors need to wake up and participate early to make the most of it.
The odds are the markets will bottom out before the middle of next year.
Bull liquidation in the derivatives segment has only compounded losses in indices in the cash market, which is already in the throes due to the overall international political clime.
Share prices of 17 of the 20 companies, which floated their initial public offers (IPOs) during the period, are now trading below their issue price. Twelve issues were listed below their offer price.
The NSE Nifty closed at 4930, up 100 points. Out of 2921 stocks traded on the BSE, there were 1769 advancing stocks as against 1054 declines.
Contributions to mutual fund schemes through systematic investment plans or SIPs remain unfazed from the market volatility in 2022 with inflow growing to Rs 1.5 lakh crore in 2022, a surge of 31 per cent from a year earlier, due to higher retail participation. In comparison, an inflow of Rs 1.14 lakh crore through the route was registered in 2021 and Rs 97,000 crore in 2020, data with the Association of Mutual Funds in India (AMFI) showed. Going ahead, SIP numbers are expected to continue to remain strong in 2023 as investors are increasingly appreciating the importance of regular investing through the route, Kaustubh Belapurkar, director - manager research at Morningstar Investment Adviser India, said.
At 11:37 am, the S&P BSE Sensex was up 28 points at 27,037 and the Nifty50 was up 2 points at 8,268
The worst may perhaps be over for these stocks, suggests Sanjay Kumar Singh.
The turbulence witnessed by the stock market this year has adversely affected brokers but Motilal Oswal, Chairman and Managing Director, Motilal Oswal Financial Services says he is unruffled. "Revenues have been hit if you compare them on a quarterly basis. The earnings were exceptionally high during the last two quarters of 2007, as the benchmark indices rose more than 30 per cent during the period. Given the swift rise in share prices, this slowdown was expected."
