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’
Identify data monitored for marketing decision making
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?
In a liquidity-led chase for returns, we typically see rotation into underperforming asset classes. So there is a case for increased flows to emerging markets and India is relatively still the more exciting of the emerging economies given the strong consumption base and increase in companies seeking investment avenues outside China. So far, the flows that India has received are in line with global flows to other markets too. A good proportion of the flows are into ETFs, which are passive in nature. Thus it looks like largecaps will continue to get a bulk of the FII flows. … [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
In March as the market fell, True Beacon, a hedge fund, was well positioned to take advantage of the volatility. Over the last year, it has returned 27 percent with almost all its outperformance coming after and on account of the market fall in March. As markets have rallied since then, CIO Nikhil Kamath has increased his hedging and says he may not outperform from here on. He’s still bullish on large banks, Reliance Industries, and Infosys. Excerpts from an interview with Forbes India: … [Read more...] about This is how True Beacon’s hedge fund outperformed the markets
“Hence, any rally in the zone of 11390–11430 levels can be used by positional traders to create fresh short positions whereas intraday traders will be better off by shorting below 11290 levels for an initial target present in the zone of 11250 – 230 levels with a stop above intraday high,” he said. … [Read more...] about After The Bell: Market ends flat; here’s what investors should do on Wednesday