Non-banking finance companies (NBFCs) seem to be on a fund raising spree, with as many as six of them currently coming out with non-convertible debenture (NCD) offers. NCDs are debentures that offer specific coupon rates for various tenures, and cannot be converted to equity shares. These instruments are listed and traded on the main stock exchanges, but liquidity is usually modest.The coupon rates on offer are quite attractive, ranging anywhere from 8.45 per cent to 10.2 per cent across tenures, thus easily beating bank deposit rates. But taking the plunge and investing in these NCDs must be done after pouring over all the details and understanding the risks. Experts advise investing only in select names, given the elevated risks relating to the deteriorating credit environment and tight liquidity scenario being faced by NBFCs.Attractive offers and attendant risksClose Well-known NBFC names such as JM Financial Products (JMFP), Shriram Transport Finance Company (STFC) and Tata Capital … [Read more...] about The NCD wave: Surf for high-return bets, but stay anchored to quality offers
Punters big bets
All the froth that was built up in terms of midcap valuations has been more than wiped out, and from here on, over the next two-three year time frame, our view is that this is the time to start investing in good quality, high growth, mid and small-cap companies which are trading at reasonable valuations, Shibani Kurian, SVP & Head of Equity Research, Kotak Mahindra Asset Management Company Ltd, said in an interview with Moneycontrol’s Kshitij Anand.Q) Indian markets seem to have caught up/stuck between fluctuating global cues and muted economic data back home. What is the way ahead for markets?A) The corporate tax rate cut was a landmark reform carried out by the government and the impact of which will be felt over time. The focus of the government is to revive investment-led growth which has been languishing for a while and carry out structural changes required to take the economy into the next league.Close After the corporate tax rate cut, India is now comparable … [Read more...] about Midcap froth gone: Investors can look to buy quality stocks with 2-3 year time frame
The September quarter could turn out to be worse than Q1 in terms of growth momentum. And, over 70 percent of the stocks in Emkay coverage could be showing weaker top-line growth trends in Q2 when compared with Q1, Sunil Tirumalai, Head of Research and Strategist, Emkay Global Financial Services, said in an interview with Moneycontrol’s Kshitij Anand.Q) We saw some outperformance in the broader market space for the week ended October 18. But, the overall sentiment is largely on the downside. Do you think the trend could sustain?A) The news flow is definitely weak when it comes to Indian economic indicators, and surely the corporate tax rate cut was not meant to give a quick fix to these issues.Close At the broader level, we saw over $20 billion annual transfer of cash from the govt to the corporate sector. However, we are positive on the long-term effects of the tax cut: across corporate profitability, more room to spend on opex and CAPEX, flow through into broader … [Read more...] about September quarter could be worse than Q1; Maruti, L&T among 4 stocks to buy for 2-3 years
If you have been tracking financial news, you must be aware of the alleged LoU (Letter of Undertaking) scam in Punjab National Bank and the resultant free fall in the share prices of leading public sector banks.The Nifty PSU bank index has lost 15.73 percent over the past month. Understandably, many retail investors are worried about this steep fall. But for some savvy investors, this fall presents an investment opportunity.“The PSU banks have got their lessons. Most of the large losses are out and the prices at which the PSU banks are quoting makes them good investment candidate,” says Feroze Azeez, deputy CEO of Anand Rathi Private Wealth Management.Close Public sector banks have been suffering due to rising non performing assets for some time now. Over the last three years, the Nifty PSU Bank Index has fallen at a compounded annual rate of 4.92 percent and the space has been seen as a value destroyer. related news MF investment in equities … [Read more...] about PSU banks under pressure: Should you invest in PSU bank ETFs now?
Moneycontrol BureauIt's the time of the year when everyone wants to go on a shopping spree. Apart from the festive cheer, there is one more reason. Everything, from a car to an air conditioner is sold at a heavy discount.While Flipkart and Amazon kicked off their festive sales starting October 10, offline players are also gearing up to offer interesting deals for consumers.Close Moneycontrol collated some of the best deals offered in the online and offline space across four-wheelers, two-wheelers, white goods, and retail industries. related news ArcelorMittal aims to complete Essar Steel acquisition by 2019-end Adani Ports & SEZ in stable waters; stock price a pull Aarti Industries Q2: Margin profile stands out; buy on dips Cars and Two-wheelersSince festivals are considered auspicious in India, many people prefer to buy vehicles during this period. This festive season, carmakers are offering attractive discounts on cars.Tata Motors has announced a special festive … [Read more...] about Festive sale! Not just online, it’s raining deals, discounts at offline stores as well