By Prashant Dhama Market volatility, like the one we have been experiencing for the past three months, usually results in anxiety, uncertainty and discomfort even in the most seasoned investor. Perhaps this feeling of anxiety and discomfort is the main reason why investors do not make good money from investing in the stock market. But why does this happen? To begin with, let’s understand some plain and proven facts. At any point in time, if you decide to start investing in the stock market, it doesn’t mean you automatically become a risk taker. The real risk is accepting the consequences of your actions, and that too, without the discomfort of fear. But why do we experience this discomfort and end up making investment mistakes? When a situation doesn’t go as per our expectations and we are not prepared for the resultant unpleasant outcome, it causes discomfort and pain. Up or down, volatility is and always will be an integral part of the stock market. Every … [Read more...] about Why most investors find it hard to handle volatility in stock market?
Stock market crash of 1929
NEW DELHI: March quarter earnings have been marred largely by bottom line shrinkage. But 10 BSE500 companies have stood out by clocking 20-30 per cent sales growth and up to four times profit expansion in a challenging quarter. Analysts says most of these firms could fare better than peers post Covid-19 crisis, both in terms of earnings growth and market share gains. For this study, only those firms were considered whose quarterly sales exceeded Rs 500 crore. Retailer Trent surprised Dalal Street by reporting a four-fold jump in March quarter profit at Rs 32.65 crore against Rs 8.13 crore in the same quarter a year ago. The company also showed a 20 per cent jump in sales to Rs 842.93 crore from Rs 694.32 crore. "Trent, like peers will go through its Covid-19 blues. However, its ability to navigate the crisis is strongest among the peer set, as the retailer remains well-capitalised. Ergo, it remains best-placed to gain market share in the aftermath of the crisis," said HDFC … [Read more...] about 10 stocks that won Covid-19 war in Q4 itself show promise to go the distance
Domestic stocks are likely to see high volatility on Thursday amid the expiry of weekly options and May series F&O contracts. Global cues will be watched keenly. Here’s breaking down the pre-market actions. TRADE SETUP SGX Nifty signals positive start Nifty futures on the Singapore Exchange traded 47.90 points, or 0.51 per cent higher at 9,359 in signs that Dalal Street was headed for a positive start on Thursday. Tech view: Nifty forms bullish candle Nifty50 took support at its 50-day moving average, whose value stood at 9,006 at Wednesday's close.The NSE barometer also closed above its 20-day moving average, which analysts said is a positive signal. Going ahead, the index may face resistance at 9,500 level and have support near 9,250, said analysts. Market-wide rollovers at 74% Market-wide rollovers till Wednesday stood at 74 per cent. Nifty rollovers stood at 61 per cent compared with the average rollovers of 57 per cent in the last three F&O series. Stock … [Read more...] about SGX Nifty trades 45 points higher; here’s what changed for market while you were sleeping
Aurobindo and Sun Pharma are our preferred picks in the pharma pack, says Equity Strategist & Senior Group VP, MOFSL. Let me focus first on banks. What did you make of the action yesterday and any particular picks that really stood out for you?The sector itself was going through a lot of pain because of the kind of bias that most of the analysts have towards banks and NBFCs. So there were a lot of short positioning in the market. So a part of the rally that we are seeing right now was also led by the short covering. Also, we have to reckon that there has been a very swift revival across most of the global markets and somehow India was actually lagging behind. So at some point when you see some news on the relaxation of the lockdown and few sectors opening up, there is going to be a bias towards buying some of these names. So yes, we have seen that also play a role in terms of the revival that we have seen. Typically it is a high beta sector. So whenever you see pullbacks, they … [Read more...] about Rally in bank stocks unlikely to sustain: Hemang Jani
Mumbai: With sharp decline in the market on the back of the Covid-19 pandemic, foreign institutional investors’ (FII) holding in the Nifty-500 stocks dropped to a five-year low, while domestic institutional investors (DIIs) and promoters lapped up cheaper bets in the disruption caused by Covid-19, a study showed on Thursday. Risk was off the table globally and FIIs resorted to dump riskier bets such as emerging markets equities, and India faced the brunt. FII’s ownership in Nifty-500 stocks dropped by 140 basis points (bps) and 80 bps on a quarter-on-quarter (QoQ) and year-on-year (YoY) basis respectively to a 5-year low of 21 per cent, Motilal Oswal Financial Services said in a report. FIIs have reduced ownership in 67 per cent of Nifty-500 and 90 per cent of Nifty-50 companies QoQ. “In terms of Covid-19, we need to see how the cases behave once we open up because some of the states still are pretty heavy in terms of the new cases that they are reporting,” … [Read more...] about FIIs’ holding in Nifty-500 stocks drops to 5-year low