Category

India Equity

Will Bear Market Overcome Bull Market?

Will Bears Overpower Bulls?- A Technical Viewpoint

By | India Equity | No Comments
  • Rupee –US Dollar Exchange Rate nearing all time high at approx. Rs 68/USD
  • Brent Oil at approx. $80/barrel  from approx. $27/barrel  in less than 3 Years
  • 10 Year Indian Government Bond Yield at approx. 7.8 from approx. 6.2 in less than 2 Years
  • 10 Year US Government Bond Yields at approx. 3. 1 from approx. 1.4 in less than 2 Years

Ideal Scenario for Bears to Overpower Bulls

Let’s look at the above mentioned factors on charts and their probable move going forward say in next year or so and their likely impact on Indian markets viz. NIFTY

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Indian Oil Subsidies

Oil Subsidies Might be Here to Stay

By | Case Studies, India Equity | No Comments

There are several reasons why the domestic government owned oil companies (especially the upstream companies) are analysed with a fair bit of scepticism – their reserves fluctuate with respect to the crude oil price, their asset block is hard to figure out, the management is appointed by the Government of India and they have been saddled historically with subsidies that the government provides to its citizens.

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Adverse effects of rising U.S bond yields

Beware of the Rising U.S. Bond Yields!

By | Global Equity, India Equity | No Comments

The Raging bull rally in 2017 in U.S. Market which continued in January 2018, has been halted in recent months. One of the reasons for initial correction in February was Rising U.S. Bond Yields. Thereafter, Rising Bond Yields took a little breather. Now again Bond yields have started rising which could prove to be dampener for  U.S  Equity Market  going forward.

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Valuation of Indian market based on Warren Buffet indicator

What is the Warren Buffett Indicator telling you about the Indian Market

By | India Equity | No Comments

Back in 2001, Warren Buffett had talked about the Mcap to GDP ratio as probably being one of the best measures of valuation. On a top down basis this is one of the indicators that he tracked to identify extremes of market irrationality. Like all valuation indicators there certainly are limitations to the measure. And in pursuit of perfection one could make multiple adjustments to make the measure more robust. But as Buffett puts it “On a macro basis, quantification doesn’t have to be complicated at all”.

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Investor correcting the market growth performance

Are We on the Verge of Significant Market Correction?

By | India Equity | No Comments

“The party is on and nobody wants to leave the dance floor in a hurry”. 2017 has been a super year for the majority of markets across the globe with the US Market, the world’s biggest market represented by S&P 500 Index, seeing a continuous uptrend giving 19.42% return for the year with not even a 5% correction during the year. India’s NIFTY 50 has outperformed S&P 500 and has given a return of 28.65% for the year.

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Investor analyzing indian equity market valuation

India Equity Market Valuations: The Need to Exercise Prudence

By | Global Equity, India Equity | No Comments

This article was originally published on ValueWalk

“The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs.” – Warren Buffett 1

While the long expected earnings recovery has continued to push its realization date further out, equity markets have continued to march upwards. As indices have moved up while earnings have largely failed to keep pace, valuations, to the extent that one bases them on the current earnings power of the business, have increasingly extended themselves in the overvalued zone. The willingness of market participants to pay significantly more for the same stream of earnings is also reflected in exuberant behavior in primary markets.

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Notes:

  1. 1986, Chairman’s letter, Berkshire Hathaway.
Invest in High Quality Stocks in Indian Markets

High Quality Stocks in Indian Markets

By | India Equity | No Comments

This article first appeared on Value Walk.

“The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors.” – Warren E. Buffett

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why invest in gold

Why Indian Families Must Invest in Gold and Gold Mining Shares

By | Gold, India Equity | No Comments

Gold has been in use as a form of currency or a high value commodity for at least three millennia. Records show that India has had an intense relationship with this glittering metal for almost as long. The picture of an Indian bride is incomplete without her being weighted down by masses of gold jewellery and tales of palaces being inlaid with gold leaf abound.

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