Indo- China border tensions flared again, along with dismal GDP forecast by rating agencies that impacted the markets. Global markets are also looking weak and we maintain our stance on being cautious in the current market scenario.Aamar Deo Singh, Head Advisory, Angel Broking Ltd … [Read more...] about After The Bell: Market ends flat; here’s what investors should do on Wednesday
Markets
Wall Street’s ‘fear gauge’ spikes but unlikely to be pointing to a market crash
A part of the recent climb in the VIX has to do with how VIX futures and the spot index converge at monthly futures expiration dates. With the U.S. election nearing, there is a big gap between the VIX, which only covers a 30-day period, and longer-dated futures that cover the election. … [Read more...] about Wall Street’s ‘fear gauge’ spikes but unlikely to be pointing to a market crash
COVID-19, marginal dip in discount rate may deflate the current bull market: ICICI Securities
The brokerage pointed out that a key argument for the current rally in global equities is that the ‘discount rate’ has dipped sharply due to the unprecedented accommodative stance of global central banks in response to the pandemic, which has brought down the Rf (risk-free rate) while rising risk appetite is reducing the ERP (equity risk premium). … [Read more...] about COVID-19, marginal dip in discount rate may deflate the current bull market: ICICI Securities
This is how True Beacon’s hedge fund outperformed the markets
Q. How did you decide when to get back in the market?Again, we reduced the number of hedges and managed to catch the rally. We were very hedged when it fell, and we reduced the number of hedges when it went up. When the markets fell, we had a 10 percent alpha, and in the subsequent months, we kept garnering more alpha. We have again gone back to being 80 percent hedged—if the markets go up from here, we won’t make so much, but if they fall we are well-positioned. … [Read more...] about This is how True Beacon’s hedge fund outperformed the markets
‘More MF outflows seen if market keeps rising; BFSI stocks can outperform in next one year’
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’
