Nifty Results Analysis – Q3 | 2016
Yesterday we analyzed earnings trend for constituent companies of the S&P CNX Nifty. On year-on-year basis (Q3 2015 to Q3 2016) earnings showed a growth of 5.0%. In comparison, average stock prices went down by 7.5% during the same period*. * Based on stock prices as on 1st January for each year. Current PE Valuation of the Nifty = 19.46 Excel […]
3 Reasons for the Recent Stock Market Correction
Since the beginning of 2016, Indian stock markets have fallen close to 7%. Overall they have fallen ~ 20% from their highs of 2015. What’s intriguing about this stock market correction is not the pace at which it has happened but the fact that no other asset class has done well during this period. What’s […]
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The year that started with great optimism is ending on a somewhat somber note for stocks. Here’s a look back at the year that was. In all we recommended 63 stocks and closed 54* stocks in 2015 (Jan- Dec). Average Gain % from total calls closed = 26.71%. *Note: 54 calls closed include 22 calls initiated in the […]
Mutual Funds Vs. Investing directly in stocks
Do you suggest buying mutual funds or investing directly in stocks? From my immediate family to everyone in the extended circle of my distant family friends, everyone has asked me this question at least once. While I have no stats on how many took my advice, my answer had one thing common in 100% of […]
How Do Oil Marketing Companies Make Money?
In India there are 3 big Oil Marketing Companies (OMCs): Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). Core Business: Marketing of oil. In addition to pure marketing, these companies also refine and market oil that they buy from upstream oil exploration and production companies including from […]
Nifty Results Analysis – Q2 | 2016
Yesterday on Bloomberg I analyzed earnings trend for constituent companies of the S&P CNX Nifty. On year-on-year basis (Q2 2015 to Q2 2016) earnings showed a growth of 10.5%. In comparison, average stock prices went up by 5.13% during the same period*. Based on stock prices as on 1st October for each year. Current PE Valuation of the […]
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, […]
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 […]
PSU Bank Stocks and Basel III Capitalization Concerns
Over the last 5 trading sessions, stocks of public sector banks have surged anywhere between 5-25% in trade. They have caught the attention of investors and traders alike. Besides old timers who invested in PSU bank stocks for high dividend yields, there are many others who now believe that these banks could turn things around […]