April 2021

PowerGrid InvIT – should you invest?

Vidya Bala / Markets, Bonds & Deposits, Premium / April 30, 2021

POWERGRID Infrastructure Investment Trust (PGInvIT) is the third InvIT and the second in the power transmission space (the other being IndiGrid InvIT) to be listed in the Indian stock markets. It is sponsored by listed PSU Power Grid Corporation of India (PGCIL and henceforth called the Sponsor).
Please find an explanation of what an InviT is here. This article will give you only our quick take on the offer and whether it is suitable for you. It is not a deep dive into the InvIT’s business and financials.

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IndiaGrid Invit NCDs – Bonds for the short haul

Aarati Krishnan / Bonds & Deposits, Markets, Premium / April 29, 2021

IndiaGrid Invit is making a Rs 1,000 crore public issue of secured redeemable Non-Convertible Debentures (NCDs) from April 28 2021 to April 30 2021 to raise money for lending to transmission projects, repaying existing borrowings, and general corporate purposes. This is tranche 1 of a series of such offers. The Rs 1,000 crore offer consists

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Technical outlook: Identifying the sectors to focus on and the sectors to avoid

B Krishnakumar / Markets, Premium, Stocks / April 27, 2021

The Nifty 50 index has drifted lower recently and has lost close to 8% from the high of 15,431 recorded on February 16, 2021. But though the Nifty 50 has slipped to lower levels, there are quite a few sectors that have delivered positive returns during this period. So, what are the sectors to focus on (and what are the ones to avoid)? Let’s find out.

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Results Update: Tech majors moving to a new orbit

N V Chandrachoodamani / Markets, Categories, Stocks / April 26, 2021

Although some of the top Tier I IT companies such as Infosys or HCL Technologies missed market estimates for the quarter ending March 2021, they finished FY-21 on a strong note across various fronts. Steady deal wins, stable growth, sustained margins, expanding cash assets and buybacks characterized the fiscal ending March 2021 for IT companies. This, in a year ravaged by the Covid-19 pandemic. It is small wonder therefore that their price earnings valuations have moved up in trajectory, well-above their 10-year averages. Let’s take a quick recap of the performance for the latest fiscal and quarter – that led to PE moving to newer orbit. We’ve taken the 4 tech majors TCS, Infosys, Wipro and HCL Technologies for this purpose.

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Stock recommendation: A dividend play on consumer demand recovery

Bhavana Acharya / Stocks, Premium / April 25, 2021

Stocks and sectors that are likely to take an immediate hit to revenue and profits have slipped more than others. But many among these have medium to long-term growth drivers in place, and are strong enough to weather near-term impact to profitability.

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NFO Review: Mirae Asset NYSE FANG+ ETF & Fund of Fund

Vidya Bala / Mutual funds & ETFs, Commentary, Premium / April 22, 2021

Mirae Asset has come out with a NFO of NYSE FANG+ ETF and a fund of fund (FOF) with the same underlying ETF. This ETF closes on April 30th while the FoF offer closes on May 3. Both will be available for investing afresh later. We’re writing this note on the NFO following queries from

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Investing in Cryptocurrencies

Srikanth Meenakshi / Short Takes, General / April 21, 2021

Occasionally, we get questions at PrimeInvestor about investing in cryptocurrencies. Unsurprisingly, these questions arrive at a higher frequency when these currencies are trading higher and making rapid up-moves. As they are doing now. BitCoin is trading at higher than $56,000, more than 700% up in one year. And there is the new DogeCoin which has

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Stock recommendation: A solid company, a sharp fall, a great opportunity

PrimeInvestor Research Team / Stocks / April 15, 2021

Fears about a second wave of Covid more virulent than the first, have triggered a fresh bout of panic selling in the market. Stocks that may take a direct hit on their revenues and profits as a result of this have seen a correction. We think this presents a window of opportunity to add select high-quality stocks to your portfolio. We are providing a recommendation on one such stock that has seen a 21% correction from its peak in March.

Premium article available only to subscribers.

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Quarterly review – changes in Prime Funds, our mutual fund recommendations

PrimeInvestor Research Team / Research Reports, Premium / April 11, 2021

Our aim in Prime Funds review is to ensure that we don’t miss any good opportunities that are coming up and we are not holding on to funds that are slipping. When we remove funds from the Prime Funds list, we tell you exactly what to do if you have invested in these funds.

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3 reasons why you should not rollover your FMPs now

Vidya Bala / Mutual funds & ETFs, Strategies / April 8, 2021

A recent addendum by Aditya Birla Sun life suggested that investors rollover some of the AMC’s FMPs that are maturing. The reason was that given the low-rate scenario, investors are unlikely to get good interest rates outside once they exit. And that staying invested would provide indexation benefit for capital gains and earn higher returns.
But some investors raised the doubt on whether the FMPs under question were in trouble. We therefore looked at their portfolios. They had high-quality AAA-holdings are unlikely to have had any pressure on repayment. In other words, there does not appear any credit related rollover compulsion.

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Should you exit from ALL Franklin funds now?

PrimeInvestor Research Team / Mutual funds & ETFs, Strategies / April 7, 2021

Many of our customers have written to us asking whether they should continue with the Franklin Templeton funds that they hold. People are worried not just about debt funds, but about the future of their equity funds as well. These worries are not misplaced given recent developments at the fund house.
As readers of this space know, we have been tracking the performance of this fund house from a time well before the crisis relating to the decision to wind up six debt schemes unfolded. So, for us here at PrimeInvestor, this question of what to do with your holdings is not tough to answer.

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Nifty 50 outlook: Struggling index hints at correction

B Krishnakumar / Markets, Premium / April 1, 2021

This is an update to the Nifty 50 outlook that was posted about a month ago. The Nifty 50 index has struggled make headway on the upside and has instead traced a bearish sequence of lower highs and lower lows in the daily chart. As observed in the previous post, the low at 14,500 was

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