VIT-AP inks pact with ALPHABETA Inc
Business Cycle Investing: A fresh approach to Stock Markets
Business cycle investing is a whole new approach to medium and long-term investing in the stock market, where investors follow business cycles, and focus more on the performance of individual sectors rather than individual stocks. Business cycle investing makes sure investors, at all times, are invested in sectors that are on the rise. It follows a top-down approach – first identify the phase of business cycle, followed by sectors that have historically done well during that phase, and finally individual stocks within the chosen sectors that have a potential upside in the near future.
There are 4 phases of any business cycle – growth, recession, slump, and recovery. Growth phase is…Read more
Vital Signs S01E03: Are diamonds really forever? Can Yes bank emerge from its crisis?
Rana Kapoor the founder of Yes Bank once said “Diamonds are Forever” and swore he would never sell his shares in the company. Fourteen months later his stake had fallen to less than 1% and he went to jail. Meanwhile, Yes Bank reported a profit of ?150.71 crores for the third quarter ended December 2020 after having posted a record loss of ?18,654 crores just a year ago. Is there still any luster left in Yes bank?
In this episode, Sundar and Sathya discuss the rise and fall of Yes bank against the backdrop of a rapidly growing private banking sector in India. Based on an upcoming book ‘Yes Man: The…Read more
Speciality Chemicals - New Horizon for India
Dalai Lama once said “Just as ripples spread out when a single pebble is dropped into water, the actions of an individual can have far reaching effects”. It seems the same holds true for global economies as well.
The Chemical Industry was dominated by the European Union and the U.S.A, together accounting for more than 40% of the global economic space. However, the financial crisis of 2008 changed the global chemical export landscape and developing economies, mainly Asian took advantage. In a dominant fashion, China took a leap with its cheap labor, cheap credit, subsidies and relaxed environmental norms.
The below graph clearly shows how China’s contribution in global chemical export from…Read more
Performance of Exchange Traded Funds in the Indian Market
In the early 1970s, the advantages of passive investing in the stock market started appearing in academic discussions. It really took off in the 1990s, when the general public began to realize that most Mutual funds were unable to beat the US Benchmark index. The high fees they charged for managing a portfolio wasn’t justified anymore. This led to the creation of a new instrument; the Exchange Traded Fund (ETF).
An ETF is a security listed on the stock exchange, that lets you invest in a host of different assets covered by an Index. For example, an ETF following the NIFTY 50 index will take cash from the public in exchange…Read more
Healthcare Goes Mobile Without Passcode
The COVID -19 pandemic has been an eye opener to us, conveying how important it is to reboot our healthcare system. Covid-19 has shifted the globe towards digital media and online space and has dramatically changed the consumer behavior. With social distancing becoming the norm, “contactless” has become the “new normal” buzzword. No industry seems to have escaped from the disruption caused by the novel pandemic and Healthcare is no exception. The focus on Preventive Healthcare and a shift from traditional in-person doctor-patient interaction to digital home care has become imperative.
Clearly the pandemic has unravelled the myriad avenues and opportunities in boosting healthcare and life sciences in India and the…Read more
Vital Signs S01E02: Will the real estate sector lead India's post-Covid revival?
Vital Signs S01E01: Is Vodafone Idea the next investment opportunity?
In this first episode of the Vital Signs Podcast series, Sundar and Sathya look at an erstwhile darling of the Telecom industry: Vodafone Idea to see if there is an opportunity for investors. While Sundar looks at technical indicators such as price action and Fibonacci retracement, Sathya analyzes systemic issues.
The post JIO world has seen the capitulation of several Telecom providers such as Aircel, Telenor, Tata Docomo, etc and only four players including Vodafone Idea are still standing. In recent years Vodafone has been steadily losing market share and profits and struggling to stay afloat. But is it time for investors to take a second look now that the company…Read more
Is Value Investing Dead?
Value Investing is all about investing in stocks where the current market price of the stock is lesser, compared to its intrinsic value. Intrinsic value is nothing but the present value of all the expected future cashflows from the stock. Estimation of the intrinsic value involves critical analysis of a firm’s financial statements, growth prospects, industry of operation, cashflows and quality of management and make an informed decision on the expected future cashflows. One arrives at a positive investment decision, when the current market price is less than the intrinsic value. Oh yes, it involves decent amount of time to evaluate a stock, at least the time we spend equal to…Read more
Will the 2020 US presidential elections outcome significantly affect the Indian stock market?
Most of the world is waiting with bated breath the results of the most anticipated political event of 2020 – the US Presidential Elections! And this time it all unfolds in the backdrop of a raging global pandemic that shows no signs of ebbing.
In terms of volatility, the S&P 500 index has typically shown a higher fluctuation in election years, as compared to non-election years1. This is mainly due to the market frequently repricing the potential impact of the new administration’s policies. In the current scenario, how the pandemic plays out, especially through the fall and winter, might make the US benchmark index even more volatile. And this uncertainty…Read more
Momentum Investing in the Indian Market
In physics, one defines momentum as the tendency of a moving object to continue moving in the same direction. In Investing terms, it means, if the market has driven the value of a stock up for some time, it will continue to do so for some more time. In simple terms the current return pattern is expected to continue over the next short to medium term.
Momentum is an example of empirical phenomenon and it is fairly widely accepted that momentum works. It is based on the simple principle of “near future mimics the near past”. As it becomes more mainstream, and makes its entry into the playbooks of retail investors…Read more