The bull run in the Indian equity markets is intact, said analysts at Morgan Stanley in a recent note. They expect the S&P BSE Sensex to hit 80,000 levels by December 2023 in their bull-case scenario, to which they have assigned a 30 per cent probability. From the current level, this translates into an upside of nearly 29 per cent.
'The recent correction in indices has made the markets cheaper to invest for the long term.'
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
At the outset, decide whether you want to be a trader or an investor, suggest Sarbajeet K Sen and Sanjay Kumar Singh.
The laggards include FMCG (16 per cent), Energy (37 per cent) and Media (34 per cent).
Avoid discontinuing your SIPs. Persist for at least 7-10 years.
Rebalance the portfolio at least once a year to ensure it remains in sync with the target asset allocation.
Even if the bull run may continue, most experts say some profit booking is called for, points out Sanjay Kumar Singh.
Quarterly earnings and global cues will be the major sentiment driver for the equity market this week, according to analysts. Of late, Benchmark indices have been on a record-breaking run. "Quarterly results will dictate market sentiment and will be the talk of this week as they pick up the pace. "D-Street will be all ears to any management insights to forecast the future earnings trajectory.
COVID-19 forced people to work from home turned into the fuel for new demat accounts, observes Debashis Basu.
Many retail investors, who are experiencing their first bear market, are shocked at the erosion in the value of their mutual fund (MF) portfolios. The pain is especially acute for those who had taken excessive exposure to sector/thematic and small-cap funds. Even international diversification has failed to stanch the bleed in this downturn.
'If Covid peaks at around 250,000 cases, I don't see the market fall much. If it becomes uncontrollable and goes up to 600,000 a day, then the market may fall.'
Despite price correction, policies that support the yellow metal will remain in place in the foreseeable future.
Even if the Paytm fiasco does not mark the end of the bull run, at least some sanity will return to the wild IPO market, observes Debashis Basu.
PowerGrid, Tech Mahindra, Infosys, Nestle India and HCL Tech too ended with losses.
Companies spent less money buying back their shares from the public last year than at any time since 2015. They announced buybacks of up to Rs 14,341 crore, show numbers from primary market tracker Prime Database. The total amount spent was Rs 13,597 crore. Both the amounts are lower than what was offered (Rs 39,564 crore) and spent (Rs 36,517 crore) in 2020.
However, NFTs and Metaverse are in their first-generation (Gen 1) or initial phase and the market is filtering the assets from the point of view of their worthiness. NFTs having real artistic value have not participated as much in the fall. Some innovations are also happening or expected going ahead, which will take this asset class to the next phase.
On the Sensex chart, IndusInd Bank, Axis Bank, Tech Mahindra, HDFC, ICICI Bank, HCL Tech, HDFC Bank, SBI and ITC were prominent gainers.
Retail depositors are earning negative returns on their bank deposits and hence, there is a need for reviewing taxes on interest earned, economists at the country's largest lender SBI have said. If not for all the depositors, the taxation review should be carried out for at least the deposits made by senior citizens who depend on the interest for their daily needs, the economists led by Soumya Kanti Ghosh said in a note, which pegged the overall retail deposits in the system at Rs 102 lakh crore. At present, banks deduct tax at source at the time of crediting interest income of over Rs 40,000 for all the depositors, while for senior citizens the taxes set-in if the income exceeds Rs 50,000 per year.
The IPO lane will continue to be busy in December as 10 companies have lined up initial share-sale plans worth more than Rs 10,000 crore, merchant banking sources said on Wednesday. Moreover, the initial public offerings of Star Health and Allied Insurance and Tega Industries are currently open for public subscription. This comes after 10 firms successfully concluded their initial public offerings (IPOs) in November. Among the companies that scheduled their IPOs in this month include RateGain Travel Technologies, travel and hospitality technology services provider, and Anand Rathi Wealth Ltd, part of Mumbai-based financial services group Anand Rathi.
Buying or selling securities based on rumours about expected changes in tax rates or sectoral sops can backfire, advises Sarbajeet K Sen.
Rediff.com takes you into the one part terrifying, one part thrilling heart of the annual Pamplona bull run.
Ajit Mishra, vice president, Research, Religare Broking, will be answering these and many such questions in an online chat with readers on February 5, between 4 pm and 5 pm.
Given the economic trends, it might make sense to allocate some savings to gold.
At 19 times the trailing earnings, valuations are above 2003, 2009 levels.
As the nation heads into a crucial election, we ask you, dear Rediff.com readers, what you think of the government's performance so far, and if it will be re-elected for another term.
Investors with high risk appetite must stay invested while risk-averse investors can consider profit booking.
IndusInd Bank was the top gainer in the Sensex pack, zooming around 8 per cent, followed by PowerGrid, Dr Reddy's, Sun Pharma, NTPC and Axis Bank. On the other hand, UltraTech Cement, Maruti, ITC, Kotak Bank and Asian Paints were among the losers.
The Adani group has the maximum number of companies in the trillion club at five, followed by the Tata group (four).
The government is expected to defer the mega initial public offering (IPO) of LIC to the next financial year as the ongoing Russia-Ukraine war has dampened fund managers' interest in the public issue, market experts said on Sunday. The government was looking to sell 5 per cent stake in Life Insurance Corporation (LIC) this month, which could have fetched over Rs 60,000 crore to the exchequer. The IPO would have helped meet the curtailed divestment target of Rs 78,000 crore this fiscal.
Rakesh Jhunjhunwala sounded another note of caution on the nature of the latest bull run.
One of the most controversial animal festivals in the world is underway in Pamplona, Spain. Welcome to the Running of the Bulls festival held each year in Spain for nine days.
Year 2021 was another great year for fund-raising through equities. A total of Rs 1.8 trillion was raised through initial public offerings (IPOs), qualified institutional placements (QIPs), and rights issues, against the Rs 1.7 trillion raised in the previous year. Funds raised through IPOs quadrupled, while those from rights issues and QIPs reduced.
Smaller stocks have continued to give higher returns to equity investors so far this fiscal, significantly outperforming bigger peers on indices. The BSE smallcap index has zoomed 7,333.47 points or 35.51 per cent, while midcap index has jumped 5,096.41 points or 25.25 per cent so far this fiscal. In comparison, the 30-share BSE benchmark Sensex has gained 9,797.78 points or 19.78 per cent.
'Largely, new demat accounts are now being opened by the younger crowd, particularly GenZ.' 'This is great news since younger investors start their journey with very little capital, so they are risking less.'
From March 3, investors in India will be able to trade in select US stocks through the NSE International Exchange (NSE IFSC), a wholly owned subsidiary of the National Stock Exchange (NSE). Investors can invest in NSE IFSC receipts on US stocks, which will be in the form of unsponsored depository receipts (DRs). For a start, this will include DRs of 50 US stocks such as Apple, Alphabet, Amazon, Tesla, Microsoft, Morgan Stanley, Nike, P&G, Coca-Cola, and Exxon Mobil. Indian retail investors will be able to transact on the NSE IFSC platform under the Liberalised Remittance Scheme (LRS) limits prescribed by the Reserve Bank of India (RBI), which currently stand at $250,000 per year.
There has been a stellar rise for the Indian markets this far in calendar year 2021 (CY21) with the S&P BSE Sensex surging over 19 per cent. The gain in mid-and small-cap indices on the BSE has been sharper with both these indexes surging around 38 per cent and 54 per cent, respectively during this period. Rampant spread of Covid pandemic's Delta variant and the ensuing lockdown and mobility curbs across India, rising prices key commodities, including crude oil and its impact on inflation, possibility of tightening of policy stance by major global central banks, especially the US Federal Reserve (US Fed) have been some of the key headwinds that the markets successfully negotiated during this period.
Having exposure to international funds and gold is a must for those who have foreign currency-denominated goals.
Ravi Singhal, vice chairman, GCL Securities Private Limited, explains why there is no need to worry as stock market indices gain higher levels.
While mid-cap and small-cap funds have given category average returns of 73.3 per cent and 89.8 per cent respectively over the past year, large-cap funds' returns have been lower at 53.9 per cent, points out Sarbajeet K Sen.
