Will 2022 be a year of contrasting narratives -- one filled with caution and the other with continued optimism?
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
After the peak of the rally, the 'champion sectors' tend to underperform or perform in line with the market
The Nifty Bank index has come off 15 per cent from its peak in February, underperforming the benchmark Nifty which is down 6%.
Over the next three - six months, UBS believes earnings will be the main driver for EM equities outperformance.
'This market is very expensive in some pockets, dirt cheap in some, and the belly of the market is reasonably valued.'
Housing sales across seven major cities in the country fell 35 per cent year-on-year to 50,983 units during the July-September period even as the demand recovered post lockdown, according to data analytics firm PropEquity. Sales stood at 78,472 units in the year-ago period in seven cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune.
The so-called high networth individual portion saw 620x more demand than shares on offer.
Smaller stocks continue to shine at the bourses. The BSE MidCap index is up 18 per cent since the beginning of January this year against a 5 per cent rise in the Sensex during the period. With the current rally, the mid-cap index has doubled in value since the end of March 2020 against a 70 per cent rally in the Sensex during the period. On Tuesday, the mid-cap index closed at 21,232, as compared to 17,941 at the end of December 2020. In the same period, the benchmark index moved from 47,751 to 50,193.
Exposure to these funds should not exceed 10% to 15% of the equity portfolio and the investment horizon should be at least seven years.
A quaint Indian idea called face value is putting high-performing companies out of the reach of retail investors, observes Debashis Basu.
Experts attribute the high valuation of Indian auto makers to the faster growth in India compared to the rest of the world.
'There is no need to do anything, let your SIPs get deducted every month, and stick to your allocation between equity, fixed income and emergency funds and your risk covers.'
'Companies with a strong business case and healthy balance-sheet should sail through and emerge more robust in the future.'
'In the business of money, where you are regulated, the liability lies on the head of the acquirer.' 'It is not a good thing when you cannot spot the risks.'
Markets
BSE-listed companies' market capitalisation reached Rs 197.7 trillion on January 21, against India's nominal GDP of Rs 190 trillion during 12 months ended December 2020.
HUL, ITC, Nestle, Colgate, Dabur, Britannia, Asian Paints, P&G are trading at nearly 48 times. The previous record high was 53 times at the end of March 1994.
'In the short term, we may see some disruptions due to Covid, but in the medium-to-long term, we should keep an eye on US inflation and 10-year bond yields.'
The gap between Nifty's price-earnings multiple and economic growth is at a 12-year high
Players like UltraTech Cement more expensive than ITC and HUL; others catching up fast.
From the valuation angle, the market is showing similar signs of being over-valued without being in a bubble territory yet.
India, best-performing among emerging markets in the first four months of 2017, has since ceded this position to South Korea.
The market valuation of Indian stocks is currently the second highest among emerging markets with the Sensex trading at a price-to-earnings multiple of 23.27 times
The risk-reward ratio could turn adverse for foreign investors if corporate earnings disappoint by wide margins, or if crude oil prices spike in the international market, putting pressure on the rupee-dollar exchange rate.
'Quality of management, corporate governance, allocation of capital, full disclosures should form the basis to decide investing in a particular stock.'
Omkeshwar Singh, head, Rank MF, a mutual fund investment platform, answers your queries.
Now STPs or variable SIPs can earn better returns than vanilla SIPs.
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.
Wondering if mutual fund investments can earn you enough money for your retirement and child's marriage? Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
'In the real economy, the scars of the pandemic will continue to define 2021.' 'It is still hard to tell the effect on unemployment, migrant workers, poverty, and the informal sector of the lockdown and of the pandemic,' observes Mihir S Sharma.
Let us see why the pharma index is valued at a premium by the market and why some companies are valued higher than others.
Being one of the early commentators to flag economic slowdown and caution investors on corporate earnings, Gautam Chhaochharia, head of India research, UBS Securities, in an interview with Hamsini Karthik says the markets remain in an expensive zone despite the recent correction.
After years of disappointing growth, the economy and the markets are poised for a breakout, notes Akash Prakash.
Market cap of government companies has remained unchanged in the past 8 years.
Market participants are hoping for a few tweaks on the taxation front which will encourage consumers and businesses to spend.
'Focus on companies with healthy balance sheets and return ratios.'
Multiple triggers such as asset sales, pickup in energy cash flows, increased traction in omni-channel retail, and rise in ARPUs could further drive the stock.
A normal monsoon, softer interest rates and inflation, pent-up demand, along with mild budgetary support may help growth pick up in coming quarters.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances