Delisting has suddenly started grabbing attention as some marquee promoters like Vedanta, Adani Power, Hexaware have been considering or chosen to opt for this route, subject to their obtaining necessary regulatory and shareholder approvals. The name of a liquor major has also been doing the rounds. Suddenly there is a lot of buzz and flurry of activity in this space.
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We live in a closely connected and globalized world which is integrated through trade, currencies, stock markets, cultures, religion, language, science, medicine and technology. History has been replete with incidents which originated at one part of the world and then rapidly spread all over.
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Many investors who held small cap stocks in their portfolio were pleasantly surprised when they read the circular issued by Securities Exchange Board of India (SEBI) on asset allocation of multi-cap schemes on September 11, 2020. The Capital Market regulator has advised fund managers to invest minimum 25% in each large, mid and small cap stocks. At a time when most multi-cap funds have invested a large part of their money in large-cap stocks, this directive is expected to change the portfolio mix and the risk-reward associated with multi-cap schemes. (more…)
Buying low and selling high is the mantra of success in stocks. How about the idea of ‘Buying high and selling higher’ or ‘Selling low and buying lower’? Do not get confused. Welcome to the world of momentum investing. (more…)
Inexperienced investors often confuse the share price of a company with its value. Let us understand this with an illustration. If an investor is given an option to buy either a stock priced at ₹ 10 or stock priced at ₹ 10,000, the possibility of such an investor buying the low-priced stock is quite high. As such, the typical retail investor suffers from a misconception that higher the price, lower are the chances of making serious money from a stock without taking into account other factors like valuation parameters such as price to earnings multiple, price to book value or dividend yield which is a serious fallacy. (more…)
India has already witnessed a digital-first trajectory with one of the highest volumes of digital transactions in the world when the pandemic struck, and further propelled the use of contactless digital technology. (more…)
Investments in equities fetch returns in two forms. One is capital appreciation and the other is dividend. In a high growth economy like India, the focus of most investors tends to be on capital appreciation. They do not pay much attention to dividends. This is a mistake. Dividends play a key role in the valuation of a company. In value investing, dividend yield is a key parameter which determines whether a stock is attractive. It has been observed that a company which has high dividend yield is expected to contain downside for investors in comparison with a company which has low or no dividend yield. A company’s dividend yield is calculated by dividing dividend per share paid by the company by its share price. (more…)
Right selection of stocks in investing is crucial to make money. One may follow different approaches towards stock selection but it all boils down to consistency in analysis, stock-picking and ultimately allocation – these 3 are the key ingredients of successful equity investing.
Conventional wisdom suggests two primary ways to analyse a stock. Fundamental analysis, which aims to ascertain the fair value of a business (stock). It takes into account quality of business of a company, demand and supply forces, pricing environment, and growth rates among other factors. Technical analysis, which assumes that the elements that impact movement of markets are easily predictable and all information about a stock is captured by the price of a stock at that moment in time. Technical analysts evaluate stocks on the basis of price and volume recorded on the stock exchanges. These two styles of analyzing stocks are applied in the following way: successful investors prefer fundamental analysis to ascertain the valuation of the stock and technical analysis to time the entry into and exit from a stock.
The entire world and human race are currently facing an extraordinary medical crisis due to breakout of the Pandemic COVID-19, however what is heartening to see is the gradual opening up of economies and its citizens starting to bravely cope and adjust to the evolving new normal.
Against this backdrop, the process of digitisation which had started in recent years and started transforming financial services landscape would only get further impetus and progressively become more mainstream. (more…)