Category: CAGR Insights – weekly newsletter curated by Kshitiz

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index	15-Dec-23	08-Dec-23	Change
Nifty 50	21,457	20,969	2.32%
Nifty 500	19,145	18,704	2.36%
Nifty Midcap 50	13,029	12,624	3.21%
Nifty Smallcap 100	14,886	14,404	3.35%

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index	08-Dec-23	01-Dec-23	Change
Nifty 50	20,969	20,268	3.46%
Nifty 500	18,704	18,115	3.25%
Nifty Midcap 50	12,624	12,335	2.35%
Nifty Smallcap 100	14,404	14,239	1.16%

Chart Ki Baat
The Tale of US and Indian markets

Courtesy: DSP AMC

Gyaan Ki Baat

The Crown Jewel Defense is a takeover defense strategy where a target company seeks to prevent a hostile takeover by divesting itself of its most valuable assets, known as the “crown jewels.” The target company makes itself less attractive to the acquiring company.

This defensive manoeuvre is designed to protect shareholder value and retain control over critical elements that contribute significantly to the company’s financial strength and competitive advantage. The success of the Crown Jewel Defense depends upon the significance of the divested assets.

Here’s the list of curated readings for you this week:

Personal Finance

• Interview with Prashant Jain – This interview discusses Prashant Jaini’s views on balancing conviction and rigidity, his evolution as a money manager and a small event that changed his life. .Read here.
  
  
• Interview with Mohnish Pabrai – This interview revolves around Monish Pabrai’s views on success, how he dealt with the Global Financial crisis and what role does money play in his idea of a successful human being. Read here.
  
  
• CRISIL’s monthly indicator of food plate cost – The average cost of preparing a thali at home is calculated based on input prices prevailing in north, south, east and west India.Read here.
  
  
• Case for a higher debt allocation over the next 12-18 months – Although bonds are typically thought of as an asset class that offers stability over a longer time horizon, debt has actually outperformed other asset classes throughout the era of extreme/long interest rate rises and tight financial conditions. Read here.

Investing

• The tale of two markets – In US, the stock market has become increasingly concentrated in the hands of the top 7 firms accounting for a substantial portion of the overall market capitalization. In India, the situation is opposite. The broader small and midcap stocks have outperformed the Large caps by a huge margin. Read here.
  
  
• Indian banks have emerged as a global beacon of stability and growth – A recent report from Moody’s has also highlighted the strength of the Indian Banks amid a negative outlook for the global banking sector in 2024. Read here.
  
  
• US examined Hindenburg allegations before giving loan to Adani – The US government extended Indian billionaire Gautam Adani’s company as much as $553 million for a container facility in Sri Lanka after concluding that short-seller Hindenburg Research’s accusations of corporate fraud against him were unfounded .Read here.
  
  
• Indian Central Bank keeps rate unchanged – The repo rate was kept unchanged at 6.5%, as widely expected. Read here.
  
  
• India Inc.’s corporate landscape in Q2-FY24 – India Inc. demonstrated increased profitability even as sales growth slowed. The main driving factor for this increase in margin was the decline in commodity prices. Read here.

Economy

• Bollywood’s Resurrection -The tremendous success of Paathan and Jaawan has revived considerable optimism for Bollywood films that has had a string of dismal years.. Read here.
  
  
• Story of Namma Yatri – For a single day, Uber and Ola were prohibited from operating in Bangalore while the courts worked to control their pricing strategies – this was the official launch of the Namma Yatri app. This article goes into depth of the journey for creating such an app. Read here.
  
  
• Trends in general government subsidies – Over the past ten years, there have been significant shifts in the pattern, with the phase-out of petroleum subsidies and the increased prominence of food and fertilizer subsidies. Read here.
  
  
• US public debt concerns – Downgrades of US credit ratings underscore another consequence of the sharp increase in interest rates: apprehension over the government’s capacity to sustain sustainable public finances over the long haul.Read here.
  
  
• Nigeria is taking a gamble on solar power – This video delves into the bet Nigeria is taking on solar power since the sudden end of its fuel subsidies. If it works in their favour, it will become the first example of a distributed off grid solar at a great scale level. Watch here.

****

Check out CAGRwealth smallcase portfolios here.

****
That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index	17-Nov-23	10-Nov-23	Change
Nifty 50	19,732	19,425	1.58%
Nifty 500	17,601	17,257	1.99%
Nifty Midcap 50	11,905	11,614	2.51%
Nifty Smallcap 100	13,882	13,365	3.87%

Chart Ki Baat
Source: Visual Capitalist See here.

Gyaan Ki Baat

A credit rating refers to an unbiased evaluation of the creditworthiness of a company or government entity, either in a broad sense or specifically in relation to a particular debt or financial responsibility. The credit rating essentially involves predicting a company’s capacity to repay its debt and implicitly forecasting the probability of the debtor defaulting.

A strong credit rating signifies that, according to the evaluation of the rating agency, a bond issuer will most likely meet its financial obligations to investors with ease. Conversely, a low credit rating suggests that the issuer may face challenges in fulfilling its payments or potentially default on them.

If a company possesses higher credit ratings, the interest payments on the bonds issued by that company will be lower. Conversely, if a company has lower credit ratings, the interest payments on its bonds will be higher. Credit ratings are provided by Credit Rating Agencies (CRAs) like Fitch, Moody’s, S&P, CRISIL, and others. Credit ratings are represented as letter grades, with AAA being the highest and D being the lowest.  

Here’s the list of curated readings for you this week:

Personal Finance

• Why Adventure is always a good investment – In the grand tapestry of life, it is the threads of memories that add color and texture, creating a mosaic of joy and satisfaction. Read here.
  
  
• TickTock’s latest obsession ‘Slient Walking’ – Often overlooked in our bustling world, emerges as a powerful tool for cultivating mindfulness and promoting overall well-being. Read here.
  
  
• India’s richest 100 – Mukesh Ambani regains the top spot on the list in 2023, while a few people were left off the list this year. Read here.

Investing

• 4 things you must come to terms with as an equity investor – Investing comes with its own set of emotional pressures, including time constraints, expenses, and the ability to balance short-term bills with long-term investment focus. Read here.
  
  
• Luck, humility, and arrogant money – Damodaran’s insights on the importance of being aware of biases, seeking opinions from those who think differently, and adaptability in the ever-evolving world of investing. Read here.
  
  
• The Behavioral Case for Defensive Equities – The article discusses how human behavior, influenced by cognitive biases like loss aversion and overconfidence, can lead to irrational investment decisions. Read here.

Economy

• Ahmedabad hotels cross Rs 1 lakh a night – With Cricket World Cup 2023 final upcoming this Sunday, travel and accommodation prices in Ahmedabad have soared dramatically. Read here.
  
  
• When will India’s firecracker industry celebrate Diwali? – The Supreme Court’s 2021 ban on harmful chemicals in fireworks, reiterated recently, has impacted India’s fireworks industry economically. Read here.
  
  
• RBI hikes risk weights on unsecured bank, NBFC loans by 25% – This move by RBI in response to concerns about the growing systemic risk associated with unsecured retail loans is aimed at stabilizing and calibrating the growth of such loans, requiring lenders to provide higher capital for such loans. Read here.

****

Check out CAGRwealth smallcase portfolios here.

****
That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.

CAGR Insights is a weekly newsletter full of insights from around the world of web.

Index	10-Nov-23	3-Nov-23	Change
Nifty 50	19,425	19,226	1.04%
Nifty 500	17,257	16,996	1.53%
Nifty Midcap 50	11,614	11,306	2.72%
Nifty Smallcap 100	13,365	12,962	3.11%

Chart Ki Baat

Gyaan Ki Baat

An Equity Savings Fund is an interesting category for those who are looking to allocate some money for 5-6 years with an intention to outperform Bank FDs but not take a pure play equity market risk.

Equity Savings Fund invest approximately 30%-35% of total investment corpus in equity assets while the rest is invested in debt income funds and arbitrages. This allocation makes them an interesting choice for two reasons –

1) The allocation creates a balance where equity market linked risk is limited to 1/3rd of the corpus. This will lead to outperformance over Bank FDs over a 5–6-year period. But it also limits the downside in case there is a market downturn.

2) Qualifies them to be taxed as equity funds. Thus, they are way more tax efficient as compared to pure debt instruments.  

Here’s the list of curated readings for you this week:

Personal Finance

• It never gets easier – The never-ending cycle of competition and achievement leads to disappointment in career for most, prompting a deeper probe into your ‘why’?  Read here
  
  
• The joy of walking away – Material prosperity and validation, while essential, are not usually indicators of a fully satisfying and well-rounded existence. The article delves into why Peter Lynch delves chose an early retirement.Read here
  
  
• Shift In Savings Curve? – Investors will need to consider reinvestment risks on maturing investments made during the high interest rate environment.Read here

Investing

• PPFAS letter to unitholders – The Director of PPFAS Mutual Fund highlights their overall market outlook, addition to product offerings and portfolio construction approach. Read here.
  
  
• Indians yet to warm up to lab-grown diamonds – According to Titan, Indians are reluctant to embrace lab-grown diamonds unlike in the US. They view diamonds as an investment as well jewellery. Read here
  
  
• Robin Hood NYC 2023 – A chat between Stan Druckenmiller and Paul Tudor Jones discussing the US economy – how different will the post quantitative easing world look like? Will interest rates have a new normal? Read here

Economy

• GST collections: signify economic resilience – Continued growth in tax collections is a positive sign for the fiscal outlook, showing the economy’s strength. Read here.
  
  
• AI in Banking – Banks are embracing generative AI, which offers potential for increased earnings, enhanced decision-making, and improved risk management. Read here.
  
  
• Why China is flirting with deflation as the west battles rising prices – As central banks in developed countries struggle with persistent high inflation, China faces the opposite challenge – the world’s second-largest economy is on the brink of deflation. Read here
  
  
• India’s economy and markets around elections – The article summarizes theimpact of previous election cycles have on the growth, inflation, fiscal balance, FPI investments and currency of the country. Read here
  
  
• India’s Rapid Progress in 5G! – According to Ericsson’s report, India has embraced 5G at a faster rate than other early global adopters. This is evident in their active usage of digital apps and services such as streaming, gaming, and augmented reality. Read here
  
  
• What Could Move Oil Prices from Here? – The Israel-Gaza conflict has sparked concerns about its potential impact on the oil industry and the threat it poses to the global economy and markets. Read here

****

Check out CAGRwealth smallcase portfolios here.

****
That’s it from our side. Have a great weekend ahead!

If you have any feedback that you would like to share, simply reply to this email.

The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.