Indian market likely to double in 5 years, says Manish Jain of Ambit Asset Management
Manish Jain, Fund Manager, Coffee Can PMS, Ambit Asset Management, believes that the Indian market can double in the next 5 years. Don't get swayed by near-term momentum and always aim for long-term wealth creation by investing in quality businesses, Jain advised investors. Key Points
mint'Indian stock market outperforms the global market, makes for attractive investment'
MSCI 1-month’s return is 8.0% compared to MSCI World’s 5.2%, 1Yr is 12% vs 13.8%, respectively. Key Points
mintIndia's first 50-year bond fully sold on growing insurer demand
The government sold 100 billion rupees ($1.2 billion) of the 2073 bond at a cutoff yield of 7.46%, the Reserve Bank of India said in a statement. Thats lower than the 7.48% forecast in a Bloomberg survey. Investors, including insurers, probably lapped up the paper as they had expressed strong interest before the auction to lock in higher yields to take care of long-term commitments. Key Points
Economic TimesIREDA trumps Street expectations with a robust debut. Is it a good long-term bet?
Despite solid listing gains, analysts are quite bullish on the stock from a long-term perspective. With India's ambitious renewable energy goals, they believe IREDA is well positioned to benefit from the opportunities in this space. Key Points
Economic TimesIndia set for LNG deal-making rush in win for Modi’s gas push
Importers are accelerating efforts to lock in fuel, according to traders and executives. Buyers including Petronet LNG Ltd., GAIL India Ltd. and Indian Oil Corp. are in talks with suppliers in the US, Qatar and the UAE for deals that last for 20 years. The trend is a reversal for the nation, which hasnt signed a long-term deal since 2021, according to contract data from BloombergNEF. Key Points
Economic Times
Your Questions Answered: How does tax-loss harvesting work and can it minimise my tax outgo?
Tax-loss harvesting is a strategy to minimize tax liability by selling underperforming investments to offset gains. It helps rebalance portfolios and reduce overall tax burden by offsetting short-term losses against gains and long-term losses against gains. Key Points
mintHow to make climate progress: Tie it to CEO pay
More company boards are doing just that. But the key is to do it right. Key Points
mintBritain to study weight loss drug's potential to get people back to work
Britain is set to explore the potential of Eli Lilly's weight loss drug to improve public health and economic productivity by reducing long-term sickness. Health minister Wes Streeting believes this initiative, supported by substantial investment and research, could significantly impact obesity management and alleviate NHS demands. Key Points
India TodayTechnical Breakout Stocks: How to trade Borosil Renewables, Lemon Tree Hotels and Cipla on Wednesday
Sectorally, selling was seen in realty, public sector, metal, oil & gas, and energy space while some buying was seen in healthcare. Sharp selloff was also seen in the small & midcap spaces, which plunged nearly 3% each. Key Points
Economic TimesHyundai IPO: Should you buy shares after its listing?
While the buzz surrounding the IPO is palpable, many brokerages are urging investors to take a cautious approach. They advise looking at Hyundai’s long-term growth potential rather than getting caught up in the excitement of quick listing gains. Key Points
India Today
Poll freebies to hurt long-term growth, say experts
Experts have warned that populist promises, such as cash and travel subsidies, promised by political parties in the lead up to elections in India, could harm long-term growth prospects. C Rangarajan, former RBI governor, suggested enforcing strict fiscal-deficit limits to limit freebies. Former chairman of the National Statistical Commission, Pronab Sen, called for action by the Election Commission against such promises. Meanwhile, M Govinda Rao, a member of the 14th Finance Commission, said that parties focus on short-term rather than long-term benefits. Key Points
Economic TimesIt’s time to bring long-term investing back into fashion!
Historically as well as statistically, it has been observed that long-term investing creates wealth. Warren Buffet, one of the greatest investors of all time, quoted, “Someones sitting in the shade today because someone planted a tree a long time ago.” Key Points
Economic TimesNarrative or Reality: This ratio is better guide for long term investors
As the market corrects and stays volatile, one justification which is likely to come to market would be comparing current price multiple of stocks to average price earning multiple it was getting till a few months back and investment case would be made. However, relying solely on the P/E ratio for investment decisions can be misleading, as it may not accurately reflect a stock's true value, particularly in cases where a stock seems inexpensive based on this metric alone. The Price/Earnings to Growth (PEG) ratio emerges as a more refined tool for long-term investments. Key Points
Economic TimesMade money in small and midcaps? Book some profit and raise allocation to largecaps: Abhay Agarwal
“Among the largecaps, we have added Reliance, Kotak Bank, Dr Reddy's and Divi's. We are turning quite positive on largecap pharma segment because after years of struggle with pricing and volumes in the US markets and the struggles with US FDA, this is a sector which is now seeing good traction and is very competitive right now.” Key Points
Economic TimesFinal Cost Inflation Index for FY24 to be fixed at 348
“This notification shall come into force with effect from the 1st day of April 2024 and shall, accordingly, apply in relation to the assessment year 2024-25 and subsequent assessment years” According to the Central Board of Direct Taxes (CBDT) notification. Cost Inflation index is used for calculating long-term capital gains arising from sale of immovable property, securities and jewellery after adjusting inflation when they file income tax returns (ITR) next year. Key Points
Economic Times
A record number of people are off work in UK. Know why
The monthly labor market figures from the Office for National Statistics, found that unemployment rose modestly to 3.9% in March from 3.8% the previous month. | World News Key Points
Hindustan TimesSBI board approves raising up to $2 billion via long-term debt
It was SBI's third Tier-1 bond issuance in the previous financial year. The tenor of these bonds is perpetual, with a call option after 10 years and every anniversary thereafter. Key Points
Economic TimesTINA factor: Sunil Subramaniam explains why India is a long-term destination for even FIIs
“Once you have a domestic focus, keep a broad market focus. If FIIs want to come into largecaps, somebody has to sell. Local players like domestic mutual funds, the domestic alternative investment funds, insurance companies will keep rotating that. I do not see a cause for worry in terms of wealth creation in India.” Key Points
Economic TimesAre Nifty stocks, sectors expensive at current valuations? Let's check history
Nifty stocks that are trading at a significant discount to their historical averages are ONGC (-45%), BPCL (-41%), Tata Steel (-38%), Apollo Hospital (-31%), and Eicher Motors (-28%). As a sector, PSU banks are trading at a P/B of 1.1x, at a 30% premium to its historical average of 0.8x while the consumer sectors P/E of 41.7x implies a 4% premium to its 10-year average of 40x. Similarly, technology is trading at a P/E ratio of 23.2x, an 18% premium to its long-term average of 19.6x. Key Points
Economic Times4 investing principles that elevated Yngve Slyngstad to managing the NBIM
Yngve Slyngstad is a renowned investor who transformed the Government Pension Fund Global into the largest sovereign wealth fund globally. He advocates for long-term investing, diversification, active ownership, and transparency. Key Points
mint
1 in 3 NSE 200 stocks slip into bear territory
Out of the 60 stocks below this long-term trend indicator, Navin Fluorine International, Indraprastha Gas, Gujarat Gas, Biocon, HDFC Bank, Pidilite Industries, Kotak Mahindra Bank, Dabur India, BPCL, and Wipro are among the notable names. The Nifty has dropped 4.8% in the past week. Key Points
Economic TimesWorld breaches key 1.5C warming mark for record number of days
The BBC finds that there have been a record number of days in 2023 that breached the 1.5C temperature limit. Key Points
BBC NewsSudip Bandyopadhyay’s top 2 picks among Adani Group stocks for next 1 year
Sudip Bandyopadhyay of Inditrade Capital, believes that Adani Ports, Gujarat Ambuja, and ACC are good investments for long-term investors. He states that Adani Ports is a fantastic company with an excellent future closely linked to the growth of India, making it a good buy even after recent increases in valuation. Gujarat Ambuja and ACC are strong businesses in the cement industry, set to benefit from significant construction and infrastructure activity in the next 1-1.5 years. Adani Wilmar is another company with potential for long-term growth and investment. Key Points
Economic TimesThere Is a long-term Danger Lurking in Financial Markets
The premium investors demand for holding longer-maturity assets remains very low. Markets could be in for a wallop if it returns to historical averages. Key Points
mintETMarkets Smart Talk: Largecap stocks likely to deliver 11-13% return in next 12 months in line with nomin
Pradeep Gupt of Anand Rathi Group, expects nominal GDP growth of 10% to 11% in the next 12 months. He believes that market timing and instrument selection have a limited impact on portfolio returns, accounting for only about 10% of the variability. While geopolitical concerns have caused short-term volatility in equity markets, Gupta maintains a positive outlook for the Indian equity market due to strong macroeconomic and corporate fundamentals. Key Points
Economic Times
Will Zerodha come out with an IPO: Nithin Kamath says ‘most companies forced...’
Nithin Kamath emphasizes long-term sustainability over IPOs, citing unpredictable revenue. He believes entering public market would shift focus. Key Points
Hindustan TimesIncome Tax department notifies cost inflation index for current fiscal
The Income Tax Department has notified the Cost Inflation Index (CII) for the fiscal year 2024-25, set at 363, to calculate long-term capital gains from the sale of assets. The CII reflects economic inflation, with an increase of 15 points from the previous year, aiding taxpayers in adjusting gains for inflation and reducing tax liabilities. Key Points
Economic TimesMission 2047: India charts road to a developed economy
India is setting near, medium, and long-term goals to become a developed economy by 2047, focusing on electric mobility, digitisation of payments infrastructure, and high-speed expressways. Central ministries will soon finalize five-year budgetary requirements for better financial management. Key areas include extended producer responsibilities, electronic waste recycling, soil surveys, farm output increase, youth skilling, speedier production from auctioned mines, and increased manufacturing output with lower emission intensity. Key Points
Economic TimesGautam Adani secures ore for world’s largest single-location copper smelter in Gujarat
Gautam Adani's conglomerate has secured contracts to purchase 1.6 million tons annually of copper concentrate for its Mundra-based smelter, set to become the world's largest single-location facility for the metal. The $1.2 billion plant, with an initial capacity of 500,000 tons, is slated to commence operations next month, expanding to 1 million tons by March 2029 to meet India's projected doubling of copper demand. Key Points
Economic TimesBJP Budgets For Third Term
India Business News: Explore the budget presented by Nirmala Sitharaman as BJP plans for their third term in power. Discover the government's focus on long-term measures for India's development and the messages conveyed to the average voter. Key Points
Times Of India
ETMarkets Fund Manager Talk: See India-dedicated allocations rising if economy stays resilient: Venkatesh
India's weightage in the MSCI EM index has significantly increased from 6.4% to 16.3% over the past decade. The rising allocation to India in global equity indices is expected to continue if the economy maintains its resilience and healthy growth pace. However, it is crucial to keep an eye on China, the largest constituent of the EM indices. Inflows into the Indian markets in 2024 will be driven by domestic retail flows and the growth versus valuation equation for India compared to other key countries, particularly China. Key Points
Economic TimesLooking for safety with a reasonable growth premium? 4 midcap stocks with right PEG ratio
One of the biggest challenges which companies face is the right allocation of capital. Over a long term it is the right allocation of capital which determines whether a business is able to create shareholder returns or not. This becomes even more pronounced in the case of the mid-cap companies where resources are even more limited. When looking at mid-cap companies, look carefully at PEG ratio which in the long-term indicates many things in a better manner than most other alternatives like PE which tend to create a mirage of value. Key Points
Economic TimesPotential stars of next rally are top MF buys in November
Analysts say that insurance cos have managed to increase premiums on most of their existing policies by 20-30%. Given this increase, the profitability of insurance companies is likely to improve in the coming quarters, making current valuations attractive. Key Points
Economic TimesThere is nothing like small, mid and largecap today because valuation gap has come down: Porinju Veliyath
“The next one year may not be very exciting for value investors because all of us know it is very rich valuations in general, so we have to go bottom-up stock pickers or business pickers, very selective, looking at the future of these companies and the verticals they are operating in and that way it is exciting. But in general, hurrying to pick stocks at these valuations, is not going to work.” Key Points
Economic TimesETMarkets Smart Talk: Time in the market is ultimate Rohit Sharma for driving wealth creation in your port
Time in the market is crucial for wealth creation. Geopolitical concerns, such as higher oil prices and active military action in the Middle East, can have a long-term impact on equity markets. Buybacks are becoming common as they are more tax-friendly for investors and allow companies to return excess cash. The commodity cycle may be affected by geopolitical concerns, with oil being the outlier. SIPs and other non-discretionary flows into equities provide a liquidity cushion for Indian equities. Key Points
Economic Times
Titan board approves raising up to Rs 2,500 cr via NCDs
The board of Titan has also approved a proposal for availing long-term borrowings in the form of long-term unsecured loans up to a limit of Rs 1,000 crore from banking institutions. Titan shares have had a decent run this year with a gain of about 29%. The gems and jewellery stock hit a record high of Rs 3351 in mid-September, but quickly pared gains and went under price correction Key Points
Economic TimesGiven the valuations,there is a reasonable chance of a correction in Indian market: Anand Tandon
There is potential market correction due to weakening global flows and the market's high valuation relative to long-term fundamental numbers. While India's domestic flows remain resilient, even mutual funds show a slight easing off in fresh investments into equity funds. Global weakness, whether due to China or the US, will eventually catch up with India, as the country's growth depends on external factors. Key Points
Economic TimesChintan Shivir to focus on ensuring high growth rate
The finance and corporate affairs ministries plan to hold a two-day Chintan Shivir starting 20 August at Gujarat's Kevadia, which will comprise short and long-term measures to sustain growth rates, control inflation and tackle external challenges. Finance and corporate affairs minister Nirmala Sitharaman is expected to attend, while senior ministry officials will also be present. Key Points
Economic TimesChintan Shivir to cocus on ensuring high growth rate
The finance and corporate affairs ministries plan to hold a two-day Chintan Shivir starting 20 August at Gujarat's Kevadia, which will comprise short and long-term measures to sustain growth rates, control inflation and tackle external challenges. Finance and corporate affairs minister Nirmala Sitharaman is expected to attend, while senior ministry officials will also be present. Key Points
Economic TimesSunil Subramaniam on financial independence and very long-term investments
Sundaram Mutual CEO, Sunil Subramaniam emphasizes on financial planning for retirement and not relying on children for financial or medical support in the future, stating the socio-demographic shift from a joint to a nuclear family. He also recommends maintaining a long-term investment plan of 20-30 years in order to achieve financial freedom and drawing benefits of rupee cost averaging through SIPs. Key Points
Economic Times
Exit Hikal, rather go for UPL as a long-term buy: Sudip Bandyopadhyay
UPL is a strong buy for long-term investors looking for a stock in the agrochemical industry. The company has experienced a 50% fall in stock value from the top, but this is expected to improve in the second half. UPL is amongst the top five agrochemical companies globally and had reduced and structured its debt. Additionally, it had taken measures such as focusing on cost reduction and inventory liquidation. In contrast, Hikal has experienced many regulatory challenges and struggles with corporate governance issues, and it is therefore not advisable to invest in. Key Points
Economic TimesIndia's Petronet eyes lower prices under renewed long-term deal with Qatar
India's Petronet LNG hopes to extend its long-term gas import deal with Qatar at lower prices than those offered by the world's top liquefied natural gas (LNG) exporter in recent deals with China and Bangladesh. Indications are that the deals have been done at a slope of 12-13% to Brent, said A. K. Singh, Petronet's chief executive. LNG contract prices are typically expressed as a slope, or percentage, of Brent prices. Key Points
Economic TimesWall Street climbs on signs of easing inflation; chip stocks gain
U.S. annual inflation slowed considerably in June, likely pushing the Federal Reserve closer to ending its fastest interest rate hiking cycle since the 1980s Key Points
Business TodayUS cluster munitions delivered to Ukrainian army
We just got them, we haven't used them yet, but they can radically change (the battlefield), Ukrainian army commander Oleksandr Tarnavskyi told US broadcaster CNN in an interview. The United States last week said it would deliver cluster bombs to Ukraine, despite concerns over the long-term risk posed to civilians. Key Points
Economic TimesQuiet promotion and its implications on your career
Quiet promotion is a new terminology being discussed in the job market. It means more work without any change in designation or salary. Though cross-functional participation and stretch goals are seen as part of employee development, quiet promotion lacks planning and reason. It could happen due to the company cutting down expenses or losing specific role employees due to attrition. Overwork, exhaustion and burnout are some of the long-term negative impacts of quiet promotion. Key Points
Economic Times
India central bank deputy calls for better risk management, governance at banks
The Reserve Bank of India has urged Indian banks to adopt effective risk management practices and strengthen their governance standards in order to avoid financial instability. MK Jain, a deputy governor of the bank, emphasised that competent and independent boards that oversee management are key to ensuring effective governance, as is taking a long-term view of one's business and considering the impact of decisions on financial health, reputation, and broader social and environmental factors. Key Points
Economic TimesHyundai Motor India to invest Rs 20,000 crore in Tamil Nadu to develop EV ecosystem
Hyundai will setup a 1.78 lakh unit battery assembly plant, install 100 EV charging stations and also increase its IC-vehicle production. Key Points
FinancialexpressVery strong case for investing in India; rising rates, volatile markets behind exits slowdown: Renuka Ramnath
Investors in the PE asset class are looking at long-term growth potential. In the current global market, this makes the investment case for India very strong. Key Points
FinancialexpressMany quality stocks available cheap, get your buy list ready
It is a once-in-a-lifetime opportunity to add stocks currently after the kind of pressure witnessed in the last couple of months, said Varun Saboo, head of equities at Anand Rathi Shares and Stock Brokers. It is important for investors to buy and hold stocks with a long-term perspective and should buy all the quality names coming at cu rrent attractive valuations. Key Points
Economic Times'Mumbai Indians sees up to 22% jump in sponsor revenues'
Team sponsorships have emerged as an ideal option for many brands who can't afford to buy sponsorship on TV or digitally during the IPL, he said. Mumbai Indians has identified digital and licensing & merchandising as the next big drivers of revenue growth. Key Points
Economic Times