In India, the Nifty50 has historically peaked at around 19x on forward PE basis. The Nifty50 trades at 24x FY21 estimates and 18x FY22 estimates. One year forward PE still looks very expensive at 22x, considering lower forward RoEs of around 13-14 percent. Globally, too, most developed markets are trading at new peak valuations. Hence, the risk-reward ratio is not favourable for either global markets or Indian markets. The upside could be in mid-single digit, whereas the downside could be in higher double digits. Be conservative, hold some cash and look to enter in corrections. … [Read more...] about ‘More MF outflows seen if market keeps rising; BFSI stocks can outperform in next one year’
How to make money on the share market
However, to keep expenses to the minimum, it’s advisable to stay away from investing in physical gold this year. If at all gold buying is non-negotiable, it’s prudent to invest in gold ETFs as they can be purchased and sold anytime. Also, they help you take advantage of intermittent volatility in gold prices. … [Read more...] about Festivities and your portfolio: how should you mange your money?
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. … [Read more...] about Market cap-to-GDP ratio moves above long period average; time for caution?
Q) In terms of sectors, some action was seen in the IT index and consumption. Selling pressure was seen in the banking as well as the realty spaces. What is weighing on these two sectors? Is it just profit-taking or moratorium overhang on the banking space?A) Loan restructuring will weigh on the banking space over the next one year or so in reminiscence of banks underperformance between 2012-14, weighed heavily down by NPAs (non-performing assets). … [Read more...] about With US elections getting closer, chances of profit-booking are high: Paras Bothra
Most prominent technology companies, especially in the US, have witnessed a tremendous recovery after the sharp crash in March. Valuations of companies such as Zoom have skyrocketed as remote working became the norm in the times of COVID-19. Microsoft's Microsoft Teams has witnessed a similar upsurge in usage as most schools and organisation have recently started using its services to organise meetings as well as impart knowledge. … [Read more...] about Not FAANG, but Indian investors are lapping up ‘FAAMNG’ stocks