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About Bitcoin, Small caps and Growth investing!

About Bitcoin, Small caps and Growth investing!

Nowadays, when you open a newspaper or switch-on a news channel, you hear three themes quite often & loud—Bitcoin, Small-cap and Growth-stocks. All of them are making headlines because of their steep moves. We hear all those statistics where brokers lure people saying, ‘If you had invested Rs. 10,000 in a certain thing sometime back, it would have become 5-10-100 Lacs!’ What do we call this frenzy? And, why is it happening? We call it Fear of Missing Out (FOMO)—a very popular term in stock markets. Markets have been reacting swiftly to each theme, as people are getting greedy. There is too much money in the system globally. Bond prices are coming down due to increase in interest rates, so the money is being parked in equities for retirement goals. In India specifically, the salaries are not growing like they did before (12-16%), Real estate is not booming, gold has […]

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Category:Economy, News

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

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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Nifty@MRP Trends Lower, What Should Investors Do?

Nifty@MRP Trends Lower, 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 Dec’15, considering the free float market capitalization at the MRP of individual stocks and the share price data as of 18th Mar, the Nifty@MRP is at 8297. On 18th Mar, NSE Nifty index closed at 7604, which is ~9% or 693 points below the Nifty@MRP. It indicates that the index is undervalued. On similar lines, the Sensex@MRP value is at 27766. On 18th March, the Sensex closed at 24953, which is about 11% or 2813 points below Sensex@MRP. Future Outlook After a strong correction in Feb 16, Indian markets have […]

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Nifty undervalued as compared to Nifty@MRP, is it the time to Buy?

Nifty undervalued as compared to Nifty@MRP, is it the time to Buy?

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 Dec’15, considering the free float market capitalization at the MRP of individual stocks and the share price data as of 18th Sep, the Nifty@MRP is at 8385. On 18th Sep, NSE Nifty index closed at 7981, which is ~5% or 415 points below the Nifty@MRP. It indicates that the index is undervalued. On similar lines, the Sensex@MRP comes out to 28094. On 18th September, the Sensex closed at 26169, which is about 7% or 1925 points below Sensex@MRP.   Future Outlook For the past few months markets have been jittery. […]

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