PrimeInvestor - Articles and Reports

Nifty 50: What Now?
Stocks
B Krishnakumar

Nifty 50: what now?

In our previous update on the Nifty 50, we had indicated that the short-term outlook for the Nifty 50 index was bearish and a drop to the March lows of 15,900 was likely. The subsequent price action has been in sync with our expectation and the Nifty dropped to a low of 15,735 last week. The key question now is whether the worst is over and whether we are now headed to fresh highs in the Nifty.ย 

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IT stocks are correcting
Stocks
N V Chandrachoodamani

Result update: 2 reasons why IT stocks are correcting and what to do

A year ago, when we did the result review of the IT stocks after the Q4FY21 earnings, the sector was moving to a new orbit on the back of robust growth prospects.
The Covid-19 pandemic increased the urgency of digital transformation for enterprises across the globe, and this paved the way for the IT sector to emerge as a strong growth story. Since we wrote about this last year, the sector has delivered stellar earnings performance during and post pandemic.

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Stable coins
General
Anush Raj P

Keeping up with the cryptosย  – Are stable coins really stable?

Stable coins are simple crypto tokens that essentially mimic a stable currency like the Dollar, Euro, Pound, etc. According to coinmarketcap.com, there are about 10+ stablecoins that have a market cap of over $700 Million USD. Leading the pack are USDT (Tether USD) and USDC (USD Coin) with a market cap of $83 Billion USD and $48 Billion USD respectively.

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Four passive debt funds to invest right now
Premium
Aarati Krishnan

Four passive debt funds to invest right now

Not so long ago, if debt investors in India wanted to get a 7% plus return, they had to go to post office schemes with (poor service and) a long lock-in period like the PPF or GOI Floating Rate Savings Bonds with a 7-year lock-in period. These options, apart from the difficulty of accessing them, required investors to sacrifice liquidity for returns.ย 

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2 safe options to earn 7.4%
Bonds & Deposits
PrimeInvestor Research Team

2 safe options to earn 7.4%

Indiaโ€™s market interest rates have been rising very swiftly after the recent mid-cycle rate hike by the RBI.ย  In our earlier analysis we had highlighted that bonds issued by the Central and State governments should now be your first choice as and when primary auctions crop up, as they offer the best combination of low risks with high yields currently.ย 

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Godrej Agrovet - Stock Review
Stocks
N V Chandrachoodamani

Godrej Agrovet – what’s firing and what isnโ€™t

Godrej Agrovet is a conglomerate with businesses spread across the agriculture and protein supply chain. It is in animal feeds, palm oil extraction, agrochemicals, dairy and frozen foods. The business has commoditised parts, seasonal parts and valued added parts.ย 

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Prime Fund Recommendation: A fund for the opportunist in you
Recommendations
Vidya Bala

Prime Fund Recommendation: A fund for the opportunist in you

Some funds have a clear fundamental strategy that shows in their portfolio construct. When that strategy pays off, they deliver. But many good-to-hear strategies have failed for many mutual funds in recent years. This is partly due to fast-shuffling sector preferences in the market and partly due to high stock weights in the index that funds struggle to replicate. As a result, you see them underperforming key indices.ย 

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LIC IPO, LIC, IPO analysis
Stocks
Aarati Krishnan

IPO Review: LIC IPO โ€“ 3 factors to consider before subscribing

The Indian government, deciding to take its chances with market moods, has launched the long-awaited IPO of Life Insurance Corporation of India (LIC). This is entirely an offer for sale by the government to offload 3.5% of its holdings (2.21 crore shares) to the public, at an offer price band of Rs 902-949.ย  LIC will not receive any proceeds from the sale. Retail bidders will get a Rs 45 discount while LICโ€™s policyholders will get a Rs 60 discount.ย 

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2 G-Sec bond options to invest right now
Bonds & Deposits
PrimeInvestor Research Team

2 G-Sec bond options to invest right now

About 10 days ago, we alerted you about the upcoming opportunities you will have in the bond market as we move up the rate cycle. Today, we are recommending 2 government securities (G-secs) that are out as auction in the RBI Retail Direct portal. You might want to check if your brokerage has the option to buy these.ย 

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M&A
General
R Balakrishnan

What they donโ€™t tell you about M&A

In an M&A, company A buys out company B, triggering positive and happy noises in the market. Share prices of both companies jump in joy on the announcement. The news then gets digested and analysed.ย  Shareholders of both companies realise after a bit, that they should have sold out in the first few days after the announcement, rather than swallow stories of โ€˜synergiesโ€™, โ€˜cost savingsโ€™, โ€˜market leadershipโ€™, โ€˜inorganic growthโ€™ and other jargon that are usually peddled to sell mergers, in company releases and analyst reports.ย 

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How to ride the rate upcycle
Bonds & Deposits
Aarati Krishnan

How to ride the interest rate upcycle

Indian debt investors have been handed a raw deal in the last three years. Though inflation has been rising and market interest rates edging up, the Reserve Bank of India (RBI) and the Monetary Policy Committee (MPC) were doing their level-best to keep a lid on interest rates, to protect borrowers in a Covid-hit economy.ย 

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