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April 23rd, 2021

Vital Signs S01E05: Bitcoin vs. Gold. What's in your wallet? Part 2/2

By ALPHABETA Team

In this second part of the two part series, Sundar and Sathya discuss Gold, that, since the court of King Augustus in 31 B.C,  has become one of the most coveted assets by rulers, dictators, nations, and investors big and small. 

Sundar traces the history of the precious metal and how it came to be the first global currency before the US dollar claimed that spot after World War II. He then argues why gold is a good investment choice for everyone, even today, to hedge against an uncertain economic or political future. Sundar also recommends that gold is a must have asset in all portfolios that can be…

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April 16th, 2021

Vital Signs S01E04: Bitcoin vs. Gold. What's in your wallet? Part 1/2

By ALPHABETA Team

Recently Bitcoin and other cryptocurrencies are attracting  professional investors, casual traders, and crypto enthusiasts across the world. Despite its relative volatility Bitcoin is beginning to be favored by institutions as a hedge currency and is looking to take the slot traditionally occupied by gold in many portfolios . 

Both asset classes have many similarities but also some stark differences. Unlike national (or fiat) currencies, they are limited in their supply that will soon run out. While gold lies underground and  it  is difficult to assess the exact quantity remaining, Bitcoin is capped to a maximum supply of 21 million that should be out by 2040. 

As an investor…

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February 15th, 2021

Business Cycle Investing: A fresh approach to Stock Markets

By Vishesh Arora

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…

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January 29th, 2021

Vital Signs S01E03: Are diamonds really forever? Can Yes bank emerge from its crisis?

By ALPHABETA Team

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…

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January 21st, 2021

Speciality Chemicals - New Horizon for India

By Diksha Jain

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…

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December 27th, 2020

Performance of Exchange Traded Funds in the Indian Market

By Achintya Tiwari, Abhrajit Sarkar and Atharva Mirajkar

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…

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December 15th, 2020

Healthcare Goes Mobile Without Passcode

By Diksha Jain

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…

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December 9th, 2020

Vital Signs S01E02: Will the real estate sector lead India's post-Covid revival?

By ALPHABETA Team
Mark Twain once said “Buy land. They ain’t making anymore!".
 
This podcast examines the real estate sector in India which has been very muted over the last 7-8 years.
 
Sundar and Sathya discuss the opportunity presented by this sector as the economy turns around. In the first section they look at the various regulations and policies that were introduced over the last few years and their impact on the property market. They specifically analyze some of the key fundamental and technical parameters and its impact on the stock prices of 3 leading listed real estate companies: Oberoi

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November 17th, 2020

Vital Signs S01E01: Is Vodafone Idea the next investment opportunity?

By ALPHABETA Team

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…

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November 5th, 2020

Is Value Investing Dead?

By Sathyanarayanan Palaniappan

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…

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