The equity markets have been losing strength and seeing steady correction albeit with temporary rebounds. We thought this was a good time to revisit our stock recommendations, Prime Stocks, and see if you can have averaging opportunities in them.
Short term outlook for Nifty 50 : We have been voicing our concerns regarding how overbought the Nifty 50 index has been in the bigger time frame. And, we have been expecting a cool off or correction in the index for the last three months. The view shared in this post on the Nifty 50 outlook is playing out and the Nifty 50 index is reverting to its mean.
Last week, we announced the beginning of our coverage of privately placed bonds. Today, we’re issuing the first of such calls. The private issuance of this unlisted bond was done on March 4, 2022 and it is now available as a secondary sale of privately placed bonds. Our report and recommendation here is on this secondary sale.
As the top two players in the oldest lending business in India, gold lending NBFCs Muthoot and Manappuram Finance don’t require much introduction to investors. Unlike other lending operations, gold lending still requires the physical presence of the customer and therefore fin-tech challengers are yet to figure out a way to crack this lucrative business. The adoption of digital technologies in gold lending is restricted to bank transactions and sales origination.
On the LIC IPO, a lot is at stake. Rules have been bent, timelines collapsed and all the corners cut to meet deadlines and valuation numbers. The secondary market price is extremely critical for the government as it will decide the annual dilution of five percent that is likely to happen, to reduce the government ownership to seventy five percent over five years. So, for those who are worried about the price now, there is hope.
With Omicron fears fading and most States geared to quickly unlock and resume normal economic activity, PrimeInvestor believes that discretionary consumption is likely to stage a comeback. Branded apparel, wedding wear, formal workwear and innerwear are likely to be some of the first items that consumers are likely to view as feel-good purchases, on resumption of normal activity.
A long-forgotten sector that has made a big comeback in the most recent leg of India’s bull market is the textile sector. The rally was pretty hard to miss. The stock price of KPR Mills has more than doubled from July 2021 to January 2022 while Vardhman Textiles and Welspun surged over 60%. AK Spintex, a textile stock that has flown under the radar for a while, climbed nearly 190% in just the first two weeks of the new year, leaving many baffled. One-year stock returns have been in excess of 100% for many players. Here are the absolute stock returns on a few textile stocks.
In our previous post on the Nifty 50 outlook, we had mentioned that the short-term technical outlook for the index was positive and that the index could head to the 18,000-18,300 range. This view played out and the Nifty 50 index hit a high of 18,350 on January 18 and has since been on a downward trajectory.
Beginning now, we will be issuing recommendations on opportunities arising in primary government bond issues to Growth subscribers. These recommendations will be both central govt bonds (called G-Secs) and state development loans (SDLs) and if opportunities are attractive – treasury bills as well.
With the Budget done and dusted, most commentators have pronounced that it is a good Budget for stock markets but an awful one for bond markets. But in our view, whether you – as a bond investor – should celebrate or mourn post-Budget, will depend on your present portfolio allocation to bonds and the kind of bonds you own. Here’s how the budget affects your bond investments.
Several sectors can benefit from the above measures, but none to any major degree. So, we will restrict this article to a select few sectors that can benefit; these being sectors that we are also focusing on or watching for opportunities.
The 30% Crypto tax is the Indian government at its passive aggressive best (or worst, depending on your view point). The text of this tax law coupled with what the finance minister said in the post-budget interview leads me to think that the government holds the crypto ecosystem in absolute disdain.
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