Even when large businesses said they were flying blind in mid-2020, the markets rallied and an incredible business boom followed. This is not to say that the markets will continue to rally and there is nothing to worry about, observes Debashis Basu.
Portfolio returns, say analysts at Morgan Stanley, are more likely to be driven by bottom-up stock-picking rather than top-down macro forces.
Here's how to get high returns from equities...
Benchmark indices increased for the fourth consecutive day amidst volatile trading and expiry of the Feb F&O contracts.
'We are in the middle of an unprecedented SIP revolution.' 'Monthly inflow through SIPs will be Rs 15,000 crore to Rs 20,000 crore soon.' 'Traditional avenues of Indian savings like bank fixed deposits, gold or real estate are no longer attractive to invest.'
After Maharashtra, analysts expect more states like Karnataka and Haryana to slash stamp duty rates. However, analysts, do caution that it's still a long road to recovery for the realty sector.
Though most analysts expect the global central banks to keep the liquidity tap open, valuations of Indian markets, they say, are beginning to look stretched. Against this backdrop, they remain cautious, with some even expecting a minor correction from here on.
Government is set to release CPI for the month of May and Index of Industrial Production IIP for the month of April today.
The outcome is beyond the market's expectation and will be a sentimental boost, say analysts.
Amidst a volatile trading session and fluctuating levels, benchmark indices ended marginally lower as sales by foreign institutional investors in index heavyweights capped upside gains.
Indices reversed all its losses during late trades.
Markets trimmed early gains to end marginally higher on Friday as investors turned cautious ahead of the GDP data for the current fiscal to be released on Friday.
Indian equities are no longer cheap vis-a-vis global markets, and only a short distance away from being the most expensive they have ever been.
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Pharma was the top losing index amid worries about their earnings outlook with Lupin down over 4%
The market breadth, indicating the overall health of the market, was positive
The S&P BSE Sensex ended the day at 28,226, up 85 points, while the Nifty50 settled at 8,734, up 18 points.
The gap between Nifty's price-earnings multiple and economic growth is at a 12-year high
Banking stocks dipped with Nifty PSU Bank index falling 1.7% after the government notified the ordinance that seeks to tackle non-performing loans in the sector.
The S&P BSE Sensex ended down 371 points at 24,966 and the Nifty50 closed 101 points lower at 7,615.
The trend in corporate earnings suggests that index earnings could fall to the levels last seen in early 2014.
A record net inflow in Indian equities in the financial year ending March 2013 helped foreign investors widen their grip.
Most of the changes have come about in the last four years and ITC is now reaping the dividends - standalone revenues from the non-cigarettes FMCG business have grown 40 per cent from FY17 to Rs 14,728.21 crore in FY21 and pre-tax profits 30 times to Rs 823.69 crore. The business accounted for 30.58 per cent of gross revenues and 4.85 per cent of pre-tax profits in FY21. "In the last four years, our margins in FMCG have gone up by 640 basis points (bps) and EBITDA margins have been moving up consistently. "We created levers that enabled a sustained growth trajectory," said ITC chairman and managing director Sanjiv Puri. Puri took charge as the chief executive officer in 2017; in 2018, he was redesignated managing director and effective May 2019, he became chairman.
With an m-cap of Rs 31,744 crore, IRCTC stood at 96th position in the overall market capitalisation ranking, the BSE data shows.
Adani Ports, HUL and L&T gained the most, while ICICI Bank, ONGC, GAIL and Tata Steel lost the most
Puneet Wadhwa and Debashish Pachal locate real estate stocks to watch out for.
'The market was expecting the Budget to do more, given the domestic economic slowdown and global uncertainty. Over the next few days, the market is expected to absorb the volatility.'
Rakesh Jhunjhunwala sounded another note of caution on the nature of the latest bull run.
'Investors should not commit fresh money to these stocks right now, unless they can hold for the next three to four years.'
Market cap of government companies has remained unchanged in the past 8 years.
A combined 14,398 shares have changed hands on the counter and there are pending sell orders for 115,711 shares on the National Stock Exchange and Bombay Stock Exchange.
Emkay Global Financial Services on Monday admitted an error on its part for the 900-point flash crash of the NSE index Nifty on Friday morning, and said it would help the stock exchange in probe into the matter.
Global funds have pumped in over Rs 38,000 crore (about $5.5 billion) into domestic equities since February 20, helping the Sensex rebound 2,671 points, or 7.6 per cent, from its 2019 low.
Broader market outperformed the benchmark indices with S&P BSE Midcap gaining over 1%
Broader markets underperformed indices with BSE Midcap down 0.43% while the Smallcap index fell 0.07%.
The S&P BSE Midcap and the S&P BSE Smallcap indices under-performed to lose 0.8% and 1.6%
With rate cut expectations running high ahead of RBI meet this week, risk appetite improved especially in rate sensitive stocks
The Nifty PSU Bank pared losses to end flat after falling as much as 1.05%
The proposal to increase public float, hike income tax surcharge, move to tax share buybacks and lack of stimulus to shore up economic growth has hurt investor sentiment.
