Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. … [Read more...] about Market cap-to-GDP ratio moves above long period average; time for caution?
Cognizant market cap
The inverse of bond yield is the bond PE, which works to around 17x (100 divided by 5.9 percent). In the last 15 years, the average premium of forward PE over bond PE has been around 300 bps. Hence, till the time bond PE remains on the higher side, equity PE will also remain at elevated levels. The real threat to equities comes from the bond market. If global bond yields rise and inflation in India goes up sharply, then bond PE will fall leading to lower valuations for equities also. … [Read more...] about ‘More MF outflows seen if market keeps rising; BFSI stocks can outperform in next one year’
Citing the example of the Kotak Standard Multicap Fund scheme, which has an AUM size of Rs 29,714 crore, has just 1 percent exposure to smallcap funds. Its exposure to midcap space is 18.3 percent. It means that the fund manager must allocate Rs 7,000 crore to smallcap category and around Rs 2,000 crore to midcap category, while the largecap category of this scheme will see an outflow of at least Rs 9,000 crore. … [Read more...] about Sebi’s multi-cap fund norms may see Rs 25-35K crore move from largecaps to mid and smallcaps
It is now valued more than the combined market capitalisation of Tata Consultancy Services and HDFC Bank, thus ranking 44th in terms of valuations globally. … [Read more...] about Big Story | RIL becomes first Indian firm to hit $200 bn m-cap; more valuable than TCS, HDFC Bank combined
The key drivers for the market are the flood of global liquidity, near-zero interest rates and massive fiscal stimulus in the developed world. The way markets and all asset classes have moved up in the past 3 months, it is clear that markets are expecting a continuation of these policies. With such liquidity flooding markets, it gives us the luxury to look beyond the immediate future i.e. FY21 and focus beyond i.e. FY22. If the economy recovers back next year, then profit growth will be sharp and valuations based on expected FY22 earnings may be justified to some extent. … [Read more...] about DAILY VOICE: Valuations of largecaps & polarization of market into top 10-20 stocks are biggest risks, says Mihir Vora of Max Life