Investors flock back to AI fund on rate cut hopes, Nvidia results

Wall Street week ahead: The recent surge in bond yields and uncertainties of China's economic crisis is creating vulnerabilities in the equity market

Inflows into exchange-traded funds (ETFs) tracking artificial intelligence (AI) companies have ebbed after their sharp run-up earlier this year, as investors fear persistently high U.S. interest rates will hurt company valuations.

Thirty-three Indian stocks have more than doubled investors' wealth in H1 2023. As of H1, the benchmark S&P BSE Sensex has given a 3.5% return, but a majority of the multibagger stocks identified come from the midcap and small-cap categories. Among the 33 stocks, six each are from the capital goods and information technology sectors, and over 100 stocks have beaten the benchmark by between 50-100%. Money managers recommend that investors continue to look for value buys from a long-term perspective.

The S&P 500 has climbed 15% despite reduced hopes for Federal Reserve interest-rate cuts.

Multibagger returns among the midcaps were lower, compared with the smallcaps, with just 9 companies rising over 100% in the last one year period. REC Ltd topped the charts in the midcap segment by delivering 247% returns in Samvat 2079, closely followed by IRFC (247%) and Power Finance Corp (240%).

India Business News: A rapidly rising retail investor base and resurgent foreign inflows have put India’s stock market — the world’s fifth biggest — within striking distan.

“There might be some ups and downs until December 3, especially with the state election results coming in, but after that, I expect a pre-election rally in the market.

Vijay Kedia, multibagger hunter and top value investor, believes that the market is in a confusing state and that the only thing to look out for is the bottom. He is cautious about investing in new-age stocks, as their valuations are still high despite the current market conditions. He is more interested in investing in stocks that are already profitable and have a good track record.

Financial markets are bracing for what could be a momentous week, with a Federal Reserve meeting, U.S. employment data and earnings from technology heavyweight Apple Inc (AAPL.O) possibly setting the course for stocks and bonds the rest of the year.

Sensex Today | Share Market Live Updates : Foreign institutional investors (FIIs) net sold shares worth ₹4,595.06 crore, while domestic institutional investors (DIIs) purchased ₹9,093.72 crore worth of stocks on March 13, provisional data from the NSE showed.