Diversified Equity Portfolio Returns
I get a lot of questions about (i) how much should you diversify; (ii) the kind of returns which diversification can make for you and (iii) pure equity oriented mutual funds. In this post I will try to club these 3 points together. To explain things I will use a set of bellwether stocks to […]
Are Telecom Stocks Heading for a Crash?
Sometimes it is hard for people to agree when you make a crazy sounding prediction, no matter how strong the facts backing you. Telecom Stocks could correct by up to 80%. The nature of technology is such that a minor up-gradation can often make redundant even the most well established businesses. From video/ audio cassettes, […]
Limits on FII holding in Indian Stock Markets
What are Foreign Institutional Investors (FIIs)? FIIs are overseas entities registered in India and allowed to invest in the Indian stock markets. FII money forms a big part of the overall pie of investment in Indian stocks. FII money is often termed as ‘hot money’ as FIIs buy/sell a large number of shares in Indian markets on […]
Is Startup Investing Killing the Stock Markets?
Starting up to raise money is the new thing. Up until a decade back, people tried to raise money to start-up. What’s changed? Two main reasons why startup investing is at an all time high: [1] Returns Generated: Startups which succeeded in past delivered unbelievable returns (think about the value created by Facebook and Zomato); [2] Lack of avenues […]
Indian Stocks – Debt & Market Capitalization
Over the last 8 years, BSE Sensex has delivered a return of ~ 24% (i.e. from 21,206 in January 2008 to 26,392 on 28 January 2015). Yes, since 2008 (pre-crash levels), bench-marked Indian stocks have risen by approximately 24%. 8 years for a meager 24% return is disappointing to say the least. Even a […]
Future of Metal Stocks in India
Like Chinese goods, the Chinese Bull Run came with no guarantees. It also met with a similar end. As the world looks for a new growth engine, can India provide an alternative? Over the last few months, metal stocks in India have taken an absolute hammering. This has more to do with a slowdown in […]
Pay Attention to Stock Market Experts on Television?
POST UPDATED – WATCH END OF POST A few days back someone on twitter wrote in to me: In my view, if television experts were correct with their recommendations, they would be the richest people on earth; the fact is that they are just as right or wrong as any of us. Like many online […]
Advantages of Forming a Company Over Proprietorship
One of the most critical decisions you will face as a business owner is whether to incorporate (i.e. form a private limited company) or to operate your small business as a proprietor. You should consider three aspects before answering this question: Number of stakeholders. At what stage is your business? What are your long term […]
Nifty 50 Companies – List & Sector-wise Weightage
— UPDATED BASED ON CHANGES EFFECTED ON: 27 March 2020 Here is a breakdown of the 50 companies which constitute the Nifty 50. Over the last decade, while sectoral weight-age has remained largely similar, the constituent companies have constantly changed. NSE has made the following changes in the composition of Nifty 50 index effective from March […]
Nifty Results Analysis – Q1 | 2016
Yesterday on ET Now – analyzed earnings trend for constituent companies of the S&P CNX Nifty. On Year-on-Year basis (Q1 2015 to Q1 2016) earnings showed a decline of ~1.4%. In comparison, stock prices went up by over 13% during the last 12 month period. Current PE Valuation of the Nifty = 23.10 Excel Calculation […]