Bazaar Ki Baat is a compilation of monthly market & sector update together with relevant events / occurrences in the economy and personal finance world.
In the 8th edition of “Bazaar ki baat”, we discuss the transformational changes in India over the last decade, Q4FY23 Earnings review, how have the earnings grown across sectors over the years, and Term Insurance – ideal cover and ideal age.
Below are the various topics discussed with their timestamp, so that you can directly jump to the section you like to watch.
• 00:00 – Monthly performance of market – Transformational decade for India
• 05:54 – Sector performance – Earnings driven
• 05:54 – How did India Inc. fare in Q4FY23?
• 11:00 – Insights from the Historical earnings performance of various sectors
• 14:31 – Term Insurance – what is the ideal cover and ideal age of the cover.
In case you have any questions, please put them as comments.
CAGR Insights is a weekly newsletter full of insights from around the world of web.
Index
9-Jun-23
2-Jun-23
Change
Nifty 50
18,563
18,534
0.16%
Nifty 500
15,877
15,811
0.42%
Nifty Midcap 50
9,599
9,630
-0.32%
Nifty Smallcap 100
10,443
10,321
1.18%
Chart Ki Baat
Bazaar Ki Baat
In the 8th edition of Bazaar Ki Baat, we discuss the reasons for market rally in May and we review the Q4FY23 earnings.
We also discuss the insights earning growth data for various sectors over the years. 1. The rise and rise of banking – The profit growth of NIFTY 50 Banking companies has 896 to 2128, from FY20 to FY23, now contributing close to 34% of NIFTY company earnings. 2. Oil & Gas– This continues to be an important sector. But this year we see earnings slowing down 3. Cyclicality of certain sectors – Automobiles, Metals and Oil and Gas are some of the prime examples, this chart beautifully showcases that. Especially for metals. 4. Defensive sectors – Consumer and Technology, you can see the stable growth showcased by these sectors. 5. Telecom – The sector seems to be stabilizing as there seems to be two clear winners in Jio and Airtel of price war started by Jio. Both have grown by eating up share from the other players namely VI.
We also discuss the ideal cover and ideal age for Term insurance. Watch here and let us know your opinion in the comments.
Here’s the list of curated readings for you this week:
Personal Finance
Launching CAGR NRI video Series – The part 1 of this series is an attempt to answer some of the most questions that NRIs have about money-related matters in India. Watch here.
Impact of one fiasco in MF industry continues years after the incident – I was reading an earnings call transcript this morning and came across this commentary from management, it just struck me how a case of mismanagement can lead to clients exiting permanently from Industry. Read here.
101 women on leap.club recently told Shruti why they would want to exercise this option. Read here.
Debt Funds – Life after removal of long-term indexation benefit – Now, the focus will be on returns and performance. This bodes well for debt fund investors.Read here.
The Liabilities of Success – It’s easy to idolize the accomplishments of those who are more successful than you, but it’s hard to understand the price they paid for that success. Read here.
Investing
The ideal rebalance frequency – If you’re not comfortable with a periodic-only rebalancing schedule, you could also do some sort of threshold levels where if an allocation gets too far out of whack then you rebalance back to target. Read here
Net employee addition declined to almost zero in H2 FY2023 for ICRA’s IT sample companies-The net addition is negative in the last two quarters for the aggregate of top IT services companies because of moderation in demand coupled with an increase in the utilization of excess capacity added in FY2022 Read here.
Why Jefferies Is Betting On India Hotels Sector – The operating margin of the Indian hotel industry neared its highest level in the fourth quarter of fiscal 2023 due to strong growth in average room rates and cost control, according to Jefferies. Read here
‘CA disappeared’: Listed company Milestone Furniture explains why it didn’t declare financial results: Milestone Furniture’s financial results for FY23 are in jeopardy as their chartered accountant (CA) has disappeared and refused to take their calls. The company is working to resolve the issue for BSE and ROC compliance. Read here
Economy
Geography is destiny – Liberty is unlikely to plant itself in a land perpetually subject to invasion. This land’s residents cannot afford the luxury of liberty.Read here
Reservoir storage remains above historical levels, auguring well for timely onset of kharif sowing – The levels remain comfortably above the historical average of the last 10 years (25% of FRL). Read here.
India monsoon reaches Kerala after longest delay in four years- India received 57% less rainfall than average in the first week of June, weather office data showed on Wednesday, reflecting the delayed arrival of the wet weather. Read here.
RBI Policy:Repo rate kept unch – The Reserve Bank of India’s Monetary Policy Committee today kept the policy repo rate unchanged at 6.50% and decided to remain focused on withdrawal of accommodation. Read 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
02-Jun-23
26-May-23
Change
Nifty 50
18,534
18,499
0.19%
Nifty 500
15,811
15,696
0.73%
Nifty Midcap 50
9,630
9,428
2.14%
Nifty Smallcap 100
10,321
10,010
3.11%
Chart Ki Baat
Gyaan Ki Baat
Commodity funds include investment in commodities such as petroleum, gold, silver. They generate returns based on the price movements of the underlying commodities same as equity mutual funds generate returns base on their underlying equity assets.
These funds offer diversification benefits and act as an inflation hedge in times of turmoil (Ex: gold mutual funds). These could be a better alternative than holding physical commodities. Although the fund manager has more expertise in dealing with commodities, one should keep in mind that commodities typically have a much larger cycle than equities. Some funds might invest in certain commodity futures which increase the added risk.
Here’s the list of curated readings for you this week:
Personal Finance
NPS – An excellent way to secure your retirement – Comparing the NPS to an alternative instrument with a 2 percent annual charge, assuming both offer an 8 percent annual growth rate (conservative estimate) after 30 years, NPS accumulates around 1.6 to 1.7 times more than the alternative Read here.
Sebi fee review to make a big dent in MFs’ profits – The Securities and Exchange Board of India (SEBI) may negatively impact India’s mutual fund sector with its proposal to review total expense ratio (TER) regulations, according to brokerage Nuvama. Read here.
Investing
A profit boom is coming – Morgan Stanley Report: The share of profits in GDP has doubled from all-time lows hit in 2020 and are set to rise further – maybe even double from here – leading to strong absolute and relative earnings. This explains India’s apparently rich headline equity valuations. Triggered by supply-side reforms by the government, we expect a major rise in investments, a moderation in the CAD and an increase in credit to GDP to support the coming profit growth. Read here
India Industrial credit growth remains low, while personal unsecured loans grow sharply. Read twitter thread here
Investing in broad indices may give a false sense of diversification – investors in the S&P 500 Index may think they are getting exposure to a diversified basket of 500 companies. But today, the top 10 mega-cap companies in the index account for almost 35% of its entire market capitalization. Read here.
Credit profiles of microfinanciers to strengthen this fiscal – Assets under management (AUM) of non-banking financial company-microfinance institutions (NBFC-MFIs) is set to grow 25-30% this fiscal amid improving asset quality and continued traction in economic activity. Read here
Economy
India’s unemployment problem – India will need to create 70 million new jobs over the next 10 years, wrote Pranjul Bhandari, chief India economist at HSBC, in a note earlier this month. But only 24 million will likely be created, leaving behind “46 million missing jobs.” Read here
Investment more than consumption leading India’s economic growth – A surge in investments that offset sluggish consumption to boost India’s growth in 2022-23 is expected to power the economy in the current financial year as the government pushes ahead with massive capital expenditure plans, economists said. Read here.
FY2023 fiscal deficit of Rs. 17.3 trillion restricted within revised target – Non-tax revenues overshot FY2023 RE by Rs. 244 billion, offsetting the shortfall in disinvestment receipts Read here.
US Congress averts historic default, approves debt-limit suspension- The Treasury Department had warned it would be unable to pay all its bills on June 5 if Congress failed to act by then Read here.
Now avail Loan against your MF investments Do reach out to us for any queries.
**** 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
26-May-23
19-May-23
Change
Nifty 50
18,499
18,203
1.63%
Nifty 500
15,696
15,407
1.88%
Nifty Midcap 50
9,428
9,176
2.75%
Nifty Smallcap 100
10,010
9,891
1.20%
Chart Ki Baat
Here’s the list of curated readings for you this week:
Personal Finance
If you can’t catch ’em, join their Signal groups first, feels Sebi – Market’s regulator Securities and Exchange Board of India (Sebi) is using the oldest trick in policing book to catch new-age crooks on encrypted messaging platforms, said two people with direct knowledge of the matter. Read here
Expectation’s debt – What do you call the top-of-the-world status Amazon had in 2021? Was it a gift? A reward for hard work? The natural swings of capitalism? Read here.
Shruti shares her experience with clients and their investment journey Read here
Which MF categories will be affected by SEBI’s TER proposals – Fisdom Research put out a report on the Sebi expense ratio paper? Where will the axe fall? What will get cheaper? Read here
Investing
The Great Disconnect between how aspirants learn from the best in normal domains vs in stock markets. Read here
Investors Should Sell All Midcaps in India – Investors should consider selling mid-cap stocks, as a lack of liquidity is unhealthy for the sector, according to JPMorgan’s Sanjay Mookim. Read here
4 Insights from Rajeev Thakkar – Chief Investment Officer of PPFAS Mutual Fund, shares his insights over Parag Parikh Flexi Cap on completing 10 years. Read here
Rainbow Children’s Medicare Limited – Read about India’s leading paediatric and obstetrics hospital chain and have a peek at our investment thought process. Read here
Economy
Impact on liquidity due to RBI transfer – While RBI’s liquidity framework entails managing weighted average overnight rate, there appears to be an implicit element of ‘tough love’ at play. Read here
Go First bankruptcy – a test of whether the country is ready to rebalance creditors’ rights and shareholders’ privilege.Read here
Worsening expectations regarding a possible default would make significant disruptions in financial markets – If the debt ceiling binds, and the U.S. Treasury does not have the ability to pay its obligations, the negative economic effects would quickly mount and risk triggering a deep recession. Read 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.
