Tag Archives: Sensex@MRP
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 currently fairly valued? Should you still be investing?

Nifty currently fairly valued? Should you still be investing?

India Inc. waits for its election outcome next month with abated breath, with high hopes for a stable government to take centre stage. However, the macro problems affecting the economic growth of the country, such as slow investment growth, high inflation and rising current account deficit continue to plague its economic growth.

For quarter ended Dec ’13 too, Capital intensive sectors took a hit on the back of sluggish construction activity and slowdown in order inflow, while companies in the global sectors outperformed.

In this backdrop, let’s look at how the Nifty 50 companies performed in Q3 of FY13-14? Has the market overvalued or undervalued Nifty vis-à-vis its MRP, and, what should investors do?

Let’s find out…

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Gap between Nifty & Nifty@MRP widens. What should you do?

Gap between Nifty & Nifty@MRP widens. What should you do?

The quarter ending December 2012 looked up to the Government for some major reforms through its Union Budget for FY13-14, to address the macro problems affecting the economic growth of the country, such as slow investment growth, high inflation and rising current account deficit.

Capital intensive sectors took a hit on the back of sluggish construction activity and slowdown in order inflow, while companies in the defensive sectors outperformed.

In this backdrop, let’s look at how the Nifty 50 companies performed in Q3 of FY12-13? Has the market overvalued or undervalued Nifty vis-à-vis its MRP, and, what should investors do?

Let’s find out…

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Just 6% discount to Nifty@MRP! Is the Indian Stock Market fairly priced?

Just 6% discount to Nifty@MRP! Is the Indian Stock Market fairly priced?

‘Wake me up when September ends’ is a popular song by Greenday which ends up as a FB status update for many people in September. The Indian Government also seems to have listened to this song and decided to wake up, albeit before September end!

September saw a number of reforms being announced by the Government – diesel price hikes, cap on LPG gas cylinders, allowing FDI in retail and some other sectors. While these reforms hurt the common man more than benefit him, the stock markets cheered wildly and have consequently rallied 8% over the last 2 months.

But while the sentiments seem to have improved a tad; what about the financial performance? Does India Inc.’s financial performance also support this optimism? To find out, let’s look at the September-12 quarter performance of the Nifty companies and find out if the Nifty is fairly priced…

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Gap between Nifty and Nifty@MRP narrows. What should you do?

Gap between Nifty and Nifty@MRP narrows. What should you do?

The start of the new financial year has been good for the Indian stock market. FII investments propelled a rally over the last 2 months which led to a 12% rise in the Nifty index. But this is small consolation as compared to the plethora of problems facing the Indian and global economy. The Government did try to pass some reforms like 49% FDI in insurance and pension sector only to be shot down by the opposition. Infact, the Government is now facing renewed pressure over the CAG report on coal block allocation.

With the overhang of these concerns, let’s look at the June quarter performance of the Nifty 50 companies. And what is the Nifty@MRP indicating? Should we be greedy and start shopping or should we be fearful?

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