Moody’s Rating upgrade: Positive for Long term

Moody’s upgraded India’s sovereign rating to Baa2 from Baa3 with Stable Outlook. What do ratings mean? Credit Rating reflects financial strength of a country when it raises money from the debt markets. Ratings vary from Aaa to D. ‘AAA’ rated asset/Sovereign is considered the safest. Safest assets/sovereign can raise loan at the cheapest rate. All countries are rated in relation to each other. Any rating equal to or above Baa3 (S&P BBB-) is considered as “investment grade”. Ratings below that are called “Junk” or Non-investment worthy. How does ratings upgrade help us? India was rated Baa3 (S&P BBB-) which was just one notch above Junk grade. This was due to poor fiscal policy, low tax base, populist budgets, etc. This ratings upgrade is a big positive. India is still a developing country. It requires large capital to build infrastructure and generate employment. Upgrade in rating can attract more investors to […]

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Category:Economy, News
HDFC Life IPO : Higher share of traditional policies but stretched valuations

HDFC Life IPO : Higher share of traditional policies but stretched valuations

Issue Date: Nov 7, 2017 – Nov 9, 2017 Face Value: Rs 10 Per Equity Share Issue Type: Book Built Issue IPO Issue Size: (Rs Crore) 8245-8695 Price Band: Rs 275 – Rs 290 per equity share No of Shares on Offer: 29.9 crore (QIB 50%, Non-Institutional 15%, Retail 35%) Market Lot: 50 Shares Minimum Order Quantity: 50 Shares Listing At: BSE, NSE About the company HDFC Standard Life Insurance Company Ltd (HDFC Life), incorporated in 2000, is Mumbai based life insurance provider. It is a joint venture between HDFC and Standard Life Aberdeen plc. It offers a wide range of individual and group insurance solutions including Protection, Pension, Savings & Investment and Health, along with Children’s and Women’s Plan. As on Sept 2017, its product portfolio comprised of 32 individual and 10 group products as well as 8 optional rider benefits. It sells policies through its own branches, Insurance […]

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Nifty@MRP Suggest Markets Are Highly Overvalued, What Should Investors Do?

Nifty@MRP Suggest Markets Are Highly Overvalued, What Should Investors Do?

What is Nifty@MRP? As investors, we constantly track the Nifty movements. To make investing more profitable and not a game of mere chance, we need a solution, a solution which could help us identify whether the market is grossly depressed or irrationally exuberant. This is exactly what Nifty @ MRP is for! What is the latest value of Nifty@MRP? For Jun ‘17, considering the free float market capitalization at the MRP of individual stocks and the share price data as of 29 September, 2017, the Nifty@MRP is at 8800 including dividends. On 29th September, NSE Nifty ETF equivalent closed at 10516.4, which is ~19% overvalued. As of 23 October, 2017, closing index value of 10184.9, Nifty is ~15% overvalued. On similar lines, the Sensex@MRP value is at 29047. On 29th September, 2017, the Sensex closed at 31283.7, which is about 8% or 2237 points above Sensex@MRP. As of 23 October, […]

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Have you increased your equity investments recently?

Across years, we have observed that investor’s behaviour changes as per the market sentiment. They turn risk averse when markets are going through a rough patch. On the contrary, they take more risk during the bullish phase. Exactly opposite behaviour is expected while investing in equities. We wonder how investors make same mistakes time and again. Like they say, history never repeats but it rhymes. In the recent times, Indian markets have been very generous. Corporate earnings haven’t kicked in and still equity returns are fantastic. Recent investors believe that 15-16% CAGR is the minimum returns one can expect from equities irrespective of when one invests. This myth is spread by brokers and Mutual Funds who tend to highlight such high “returns” in their pitch for selling equity products rather than explaining other inherent advantages of equities. (Inflation beating returns, tax free, compounding returns to meet goals faster) Many argue […]

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GIC Re IPO : Good business; Punchy valuations

GIC Re IPO : Good business; Punchy valuations

Issue Open: Oct 11, 2017 – Oct 13, 2017 Issue Type: Book Built Issue IPO Issue Size: 124,700,000 Equity Shares of Rs 5 aggregating up to Rs 11,372.64 Cr Face Value: Rs 5 Per Equity Share Issue Price: Rs 855 – Rs 912 Per Equity Share Market Lot: 16 Shares Minimum Order Quantity: 16 Shares Listing At: BSE, NSE   About the company GIC Re provides reinsurance across many key business lines including fire (property), marine, motor, engineering, agriculture, aviation/space, health, liability, credit and financial and life insurance. The company has exposure to domestic and international business. In FY17, reinsurance written for risks outside of India represented 30.5% of gross premiums. It has underwritten business from 161 countries and as on June 30, 2017 the company was ranked as the 12th largest global reinsurer in 2016 and the 3rd largest Asian reinsurer in 2015 in terms of gross premium accepted. The […]

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