victorybull

Author: victorybull

  • IT to Hire 50 Lakh in 5 Years, New Investment Opportunity for Middle Class: Rakesh Jhunjhunwala

    Ace investor Rakesh Jhunjhunwala said that the stock market has no king. Stock market is the only king. The ones who thought they were, landed up in Aurthur jail, Jhunjhunwala said while speaking at an event of the Confederation of Indian Industry (CII) on February 17.

    Nobody can predict weather, death, market and women, the ace investor further mentioned. “Market is like a woman, always commanding, mysterious, uncertain and volatile. You can never really dominate a woman and likewise you cannot dominate the market,” he said.

    Sharing the outlook for Indian economy, Big Bull said that India will grow at 10 per cent by 2025-26. The ace investor added that he made a presentation to Prime Minister Narendra Modi where he had said, “India ka time aayega nahi, aa gaya hain.”

    Optimistic Jhunjhunwala said that growing information technology (IT) industry will employ 50 lakh new employees in the next five years and the demand for the residential houses will only grow.

    The seasoned investor is very optimistic about real estate industry in the country. With the development of infrastructure comes urbanisation. Urbanisation plays an important role in housing and commercial real estate property, he mentioned.

    “You go to London, wherever the metro goes, housing has developed. So, Mumbai is making 40 kilometer of metro and it has been made — as the transport systems come, the potential for housing is going to go through the roof. Your cities are going to get decongested and urbanisation in India is today half of China-45 percent, as urbanisation comes, housing has to come,” Jhunjhunwala said.

    Consolidation in the real estate sector, all-time low interest rates on home loans, rising employment in the Indian information technology (IT) industry are some of the key triggers to boost real estate sector going forward, Rakesh Jhunjhunwala mentioned.

    India should focus on affordable housing. The regulatory framework has to evolve further to keep up with the pace of growing real estate market in India. “Digitisation of land records and certification of titles being done digitally and this will boost real estate market in India,” he said.

    Jhunjhunwala is also very bullish on commercial real estate. Logistics sector is at a nascent stage and very attractive, he said. “If India has to develop, real estate has to develop,” he said.

    The real estate investment trusts (REITs) has great scope, he mentioned adding that the units of three REITs that are listed on local stock exchanges being well received by the investing community. He would prefer REIT listing rather than listing real estate companies. Jhunjhunwala further said he is not a big fan of new developers getting listed. “If I was a developer, I would not list. It’s not a business suitable to listing. Blue Chip companies have high return on capital of 18-25 per cent, but unitl now realtors have only burnt capital,” Jhunjhunwala said.

  • Sensex, Nifty end lower in see-saw session; HDFC bucks trend

    Market benchmarks closed in the red after a highly volatile session on Wednesday despite a positive trend in global equities amid signs of cooling of Russia-Ukraine tensions.

    The 30-share BSE Sensex swung nearly 800 points during the session before closing at 57,996.68 — marking a loss of 145.37 points or 0.25 per cent

    Likewise, the NSE Nifty see-sawed between gains and losses before settling 30.25 points or 0.17 per cent lower at 17,322.20.

    On the Sensex chart, NTPC, SBI, UltraTech Cement, ICICI Bank, Tata Steel, Bajaj Finserv and Bjaja Finance were among the major laggards, shedding as much as 1.63 per cent.

    In contrast, Bharti Airtel was the top performer, spurting 1.41 per cent, followed by HDFC, M&M, Dr Reddy’s, Kotak Bank and Nestle India.

    Of the index constituents, 22 shares closed with losses.

    Ajit Mishra, VP – Research, Religare Broking Ltd, said markets are currently dancing to the global tunes and the trend is likely to continue.

    “The US Fed meeting minutes and lingering tension over the Russia-Ukraine crisis will remain on the radar. Besides, the scheduled weekly expiry would further add to the choppiness. We reiterate our cautious stance and suggest waiting for further clarity,” he noted.

    Sectorally, metal, banking and basic materials indices fell the most — dropping up to 0.66 per cent. Of the 19 indices, 11 indices closed in the red. Broader BSE midcap and largecap gauges followed the benchmark to end lower, while the smallcap index logged gains.

    World stocks edged higher after Russia said it was pulling back some troops from the Ukraine border, even as the US administration reiterated its commitment to respond “decisively” in case of a Russian attack.

    Elsewhere in Asia, bourses in Tokyo, Shanghai, Hong Kong and Seoul closed with significant gain.

    Markets in Europe too were largely trading higher in the afternoon session. Global crude oil benchmark Brent Futures slipped 0.19 per cent to USD 93.06 per barrel.

    The rupee appreciated by 23 paise to close at 75.09 against the US dollar. Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 2,298.76 crore, according to stock exchange data.

  • Sensex rebounds over 1700 points to reclaim 58K, Nifty ends above 17,300

    European stocks and U.S. futures rose Tuesday after a report fuelled optimism that Russia is de-escalating tensions with Ukraine. Russia said Tuesday that some forces deployed near Ukraine were beginning to return to their bases, after a build-up of Moscow’s army around Ukrainian borders spurred fears of an invasion.

    After a bruising sell-off on Monday, Indian equities rebounded today to close higher, aided by reports of some de-escalation in tensions between Russia and Ukraine. Gains on domestic bourses were led by banks, auto, IT, metal and FMCG stocks.

    The Sensex surged 1,736.21 points or 3.08% to close the day at 58,142.05, and the Nifty rose 509.70 to 17,352.50. 

    On the Nifty, Tata Motors, Eicher Motors, Bajaj Finance, Shree Cements and Hero MotoCorp were the top gainers, while Cipla and ONGC were worst hit. Forty eight of 50 Nifty stocks closed higher.

    All sectoral indices ended higher, with auto, realty, IT, FMCG stocks, banks, PSU banks up 2-4%. BSE MidCap and SmallCap indices rose 2% each.

  • US has not verified claim of Russia troop withdrawal: Joe Biden

    President Joe Biden on Tuesday said the US has not yet verified” Russia’s claim that some of its forces have withdrawn from the Ukraine border and said an invasion of Ukraine remains a distinct possibility.

    Biden made the remarks at the White House hours after Russia announced that some units participating in military exercises near Ukraine’s borders would begin returning to their bases.

    Russian President Vladimir Putin earlier Tuesday said Russia was ready for talks with the United States and NATO on military transparency, missile deployment limits and other security issues. But Biden continued to express skepticism about Russia’s intentions. Biden warned again that if Russia invades Ukraine the US will rally the world to oppose its aggression.”

    Putin had said Tuesday he welcomed a security dialogue with the West as his military reported pulling back some of its troops near Ukraine signals that may indicate the Kremlin has opted for a diplomatic path for now despite Western fears of an imminent Russian invasion of its neighbor.

    Putin said he doesn’t want war and would rely on negotiations as he presses his demand for the West to halt Ukraine’s bid to join NATO. At the same time, he didn’t commit to a full pullback of troops, saying Russia’s next moves in the standoff will depend on how the situation evolves.

    While the overtures soothed global markets that have been on edge amid the worst East-West tensions in decades, Washington and its European allies remained cautious, saying they want to see evidence of a Russian pullback. The US and NATO have warned that over 130,000 Russian forces massed near Ukraine could invade at any time, and they sent troops and military supplies to shore up NATO members in Eastern Europe.

    Russia has denied having such plans, demanding that the West keep Ukraine and other ex-Soviet nations out of the alliance, halt weapons deployments near Russian borders, and roll back forces from Eastern Europe. The US and its allies have roundly rejected the demands, but offered Russia to engage in talks on ways to bolster security in Europe.

    Speaking after meeting with German Chancellor Olaf Scholz, Putin said the West agreed to discuss a ban on missile deployment to Europe, restrictions on military drills and other confidence-building measures issues that Moscow had put on the table years ago. He said Russia is open to discuss some of those elements,” but added that it would only do that “in complex with the main issues that are of primary importance for us.

    Asked if there could be a war in Europe, Putin said Russia doesn’t want it but said Ukraine’s bid to join NATO posed a major security threat to his country. While Scholz reiterated that NATO’s eastward expansion is not on the agenda — everyone knows that very well, Putin retorted that Moscow will not be assuaged by such assurances.

    They are telling us it won’t happen tomorrow, Putin said. Well, when will it happen? The day after tomorrow? What does it change for us in the historic perspective? Nothing. He went on to argue NATO expansion violates the principle of the indivisibility of security enshrined in international documents.We want to solve this issue now as part of negotiation process through peaceful means, Putin said. We very much hope that our partners hear our concerns and take them seriously.

  • ₹34 to ₹142: Small-cap multibagger stock gives 300% return in 2022

    Amid stock market investors are busy finding out possible multibagger stocks for 2022, a good number of small-cap stocks have entered the list of multibagger stocks and multibagger penny stocks in 2022. Shares of Variman Global Enterprises are one of them. This BSE listed IT solution company stock has surged from ₹34.35 (close price on 31st December 2021 on BSE) to ₹141.90 apiece levels today, logging around 300 per cent rise in 2022.

    In last one week, multibagger stock has risen from around ₹124 apiece levels to ₹141.90 levels, logging around 14.50 per cent raise in this period. The small-cap stock has hit upper circuit on 3 out of 5 sessions in this period. In last one month, the small-cap IT stock has risen from around ₹52 to ₹141.90 levels, appreciating around 175 per cent in this period. Similarly, in year-to-date time, the multibagger IT stock has delivered more than 300 per cent return to its shareholders.

    Impact on investment

    Taking cue from Variman Global Enterprises share price history, if an investor had invested ₹1 lakh in this multibagger IT stock one week ago, its ₹1 lakh would have turned to ₹1.14 lakh today. Likewise, if an investor had invested ₹1 lakh in this stock one month ago and had remained invested in this stock till date, its ₹1 lakh would have turned to ₹2.75 lakh today.

    Similarly, if an investor had invested ₹1 lakh in this stock at the end of 2021 buying one stock at around ₹34.50 apiece levels, its ₹1 lakh would have turned to ₹4 lakh today, provided the investor had remained invested in the scrip throughout this period.

    On Tuesday trade session, the multibagger stock climbed to its life-time high of ₹143.55 levels whereas its 52-week low is ₹11.65 apiece. Current market capital of the small-cap stock is ₹237 crore and its book value per share is 9.60. Its current trade volume is 88,457, which is much higher than its 20 days average volume of 62,432.

  • Multibagger stock turns ₹1 lakh to ₹1.35 crore in 10 years

    Stock market investors looking for multibagger stocks for 2022 are busy finding quality stocks that are available at discounted price after the recent bloodbath. For such investors of the secondary markets, Deepak Nitrite can be a good bet in long term, say experts. Stock market experts said that the stock has shed a lot and there can be sharp rebound in the counter from lower levels, once there is trend reversal in the markets. This chemical stock is one of the multibagger stocks in 2021 that have delivered stellar return to its shareholders in long term.

    For last six months, this multibagger stock has been under selloff heat. In last one month, Deepak Nitrite share price has come down from around ₹2660 to ₹2058 levels, sliding near 22 per cent in this time whereas in last 6 months, it has lost around 4 per cent. In year-to-date time, this chemical stock has plummeted from ₹2530 to ₹2058, losing near 19 per cent in 2022. Despite such huge selloff by shareholders, the stock has delivered 75 per cent return to its shareholders in last one year. In last 5 years, the multibagger stock has risen from ₹103.65 to ₹2058 apiece levels, logging near 1900 per cent in this period.

    Similarly, in last 10 years, this multibagger chemical stock has surged from ₹15.21 levels (close price on 17th February 2012 on NSE) to ₹2058 levels (close price on 14th February 2022 on NSE), appreciating around 135 times in this time span.

    Taking cue from Deepak Nitrite share price history, if an investor had invested ₹1 lakh in this chemical stock one month ago, its ₹1 lakh would have turned to ₹78,000 today whereas it would have turned to ₹96,000 in last 6 months. If an investor had invested ₹1 lakh in this stock one year ago, its ₹1 lakh would have turned to ₹1.75 lakh today. Likewise, if an investor had invested ₹1 lakh in this multibagger chemical stock 5 years ago and had remained invested in the counter till date, its ₹1 lakh would have turned to ₹20 lakh today.

  • India’s shipment of wheat to Afghanistan via Pakistan to begin next week

    India’s 50,000 tonnes of wheat shipment to Afghanistan as part of its humanitarian aid to the trouble-torn country through Pakistani soil will start from next week, officials said.

    India has been pitching for providing unimpeded humanitarian aid to Afghanistan to address the unfolding humanitarian crisis in the country. It has already announced plans to send 50,000 tonnes of wheat and medicines to Afghanistan by road transport through Pakistan.

    Pakistan last year allowed India to send 50,000 metric tonnes of wheat to Afghanistan by using its land route after the humanitarian situation worsened in the wake of the Taliban’s takeover of Kabul.

    All hurdles have been removed and the Indian side has shared with Pakistan the list of Afghan truck drivers and contractors who would carry the wheat to Afghanistan via Pakistan, diplomatic sources told PTI in Islamabad.

    “The shipment of wheat will begin from next week,” according to the sources.

    As per the bilateral understanding, India should complete the shipment within 30 days of the first consignment sent through the Wagah border.

    India also on Friday signed an MoU with the World Food Programme (WFP) on the distribution of wheat to Afghanistan. India would hand over the wheat to WFP in Afghanistan that would then distribute it among the people.

    Initially, Islamabad wanted the transportation of humanitarian assistance goods to Kabul on Pakistani trucks under the banner of the United Nations.

    But India made a counter proposal and wanted the food grain to be shipped to Afghanistan either in Indian or Afghan trucks. The two sides then agreed that wheat would be carried by Afghan trucks and a list of Afghan contractors was shared with Pakistan.

    India had sent a proposal to Pakistan on October 7 seeking the transit facility to send 50,000 tonnes of wheat to the people of Afghanistan via Pakistani soil and it received a positive response from Islamabad on November 24.

    Following the Pakistani response, both sides were in touch to finalise the modalities for the transportation of the shipments.

    The food grains provided by India are expected to help Afghanistan deal with shortages. According to international aid agencies, about 23 million Afghans are in need of urgent support.

    Afghanistan has been under Taliban rule since August 15 last year, when the Afghan hardline militant group ousted the elected government of president Ashraf Ghani and forced him to flee the country and take refuge in the UAE.

    India has not recognised the new regime in Afghanistan and has been pitching for the formation of a truly inclusive government in Kabul, besides insisting that Afghan soil must not be used for any terrorist activities against any country.

  • Markets in a bear trap, investors lose Rs 10 lakh crore of wealth in 2 days

    Relentless selling pressure roiled the equity markets for the second consecutive session on February 14, leaving investors poorer by Rs 10 lakh crore.

    Fears of a possible invasion of Ukraine by Russia, inflating crude oil prices, and a correction in global markets spooked investors for the second day in a row.

    Equity benchmark indices fell 2 percent on Monday, in addition to the 1.3 percent drop in the previous session. The BSE Sensex plunged 1,255 points to 56,898, and the Nifty50 fell 382 points to 16,992 at 1:48pm.

    With this drop, the benchmark indices plunged into the negative territory in 2022, losing more than 2 percent against a 22 percent rally in the previous year.

    “The element of uncertainty is very high. If the Ukraine crisis aggravates into a conflict, it can inflict damage to the market in the short run. The consequences of severe sanctions on Russia in the event of a invasion can be debilitating for the Russian economy. This may restrain (Russian President Vladimir) Putin from a misadventure in Ukraine,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

    The broader markets also corrected in line with the frontline indices as the Nifty Midcap 100 index lost 2.3 percent and Smallcap 100 index declined 2.6 percent.

    Heavy selling was seen across sectors, barring information technology (IT) and pharma that fell only 0.25 percent and 0.73 percent. The Nifty Bank, Auto, Financial Services and Metal indices tanked 3 percent each. Fast Moving Consumer Goods and Realty were down more than 2 percent each.

    Investors have lost Rs 9.57 lakh crore of wealth in just two straight sessions. BSE market’s capitalisation dropped to Rs 258.24 lakh crore on Monday, against Rs 267.81 lakh crore at the close on February 10.

    The advance-decline ratio was largely in favour of the bears as four shares gained for every share falling on the BSE. More than 570 shares hit the lower circuit on Monday, against 258 shares hitting the upper circuit.

    Experts said sentiment may remain negative until the uncertainty over tensions between Russia and Ukraine eases.  “There is a short-term negative sentiment in the markets due to the Ukraine-Russia tensions, rising crude oil prices and expectations of aggressive rate hikes by the US Fed due to decades-high inflation,” said Mohit Nigam, Head of  PMS at Hem Securities.

    The current fall in the market is due to the Ukraine crisis and the market may stage a strong rebound after the crisis eases, he said.

    Market volatility is expected to stay high, so investors should not jump in for short-term gains, rather they should adopt a long-term horizon and add quality stocks during significant dips, he said.

    Markets across Asia were under pressure with Japan’s Nikkei falling more than 2 percent. China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s Kospi fell 1-1.6 percent each.

  • Sensex tanks 1200 pts, Nifty at about 17000, support at 16900-17000, TCS, Sun Pharma gain

    Benchmark indices BSE Sensex and NSE Nifty 50 opened lower on Monday amid weak global cues. The Sensex was down 1,197.86 points or 2.06% at 56955.06, and the Nifty was down 348.00 points or 2.00% at 17026.80. M&M, SBI, ITC, L&T and ICICI Bank were among major losers on the Nifty, while gainers were ONGC and TCS. All the sectoral indices are trading in the red with auto, bank ,FMCG, metal, power, realty and capital goods indices down 2-3 per cent. In the broader markets, the BSE MidCap and SmallCap indices were deep in red, down 2.7 per cent and 3.15 per cent, respectively.

  • MFs garner Rs 99,704 crore via NFOs in 2021 on sharp rally in stock market

    Mutual fund houses launched 140 new fund offerings (NFOs), which collected about Rs 1 lakh crore in 2021 on a sharp rally in the markets and an exceptional increase in the retail investors’ interest.

    However, the current volatility in the stock market might prompt asset management companies (AMCs) to limit the launch of NFOs this year, said MyWealthGrowth.com co-founder Harshad Chetanwala.

    Ankit Yadav, wealth manager (USA) and director of Market Maestro, also believes that NFOs are going to decrease in 2022 and little will come in 2023 when rates start changing.

    According to data compiled by Morningstar India, there were 140 new fund offers (including closed-end funds and ETFs) in 2021. These managed to garner a respectable Rs 99,704 crores during their inception stage.

    This was way higher than 81 NFOs floated in 2020 and cumulatively, these funds were able to garner Rs 53,703 crore.

    “Given the sharp rally in the markets along with the need to fill product gap created post-recategorisation and giving investors new themes to invest in, asset-management companies launched a plethora of new schemes across the year (2021),” Morningstar noted.

    Usually, NFOs come during a surging market when investor sentiments are high and optimistic. The stock market along with the positive investor sentiments kept surging post-March 2020. It is from this point in time the launch of NFOs started, Chetanwala said.

    The NFOs were floated to capitalise on the mood of investors and attract their investment as they were willing to invest at that time, he added.

    “The main fact as a wealth manager I see in low rate scenario is that the borrowing becomes easy with easy money fluctuating around businesses tend to bring their IPOs and AMC (assets management company) businesses are inclined NFOs,” Market Maestro’s Ankit Yadav said.

    In 2020, the central banks throughout the globes cut the rates and made rates hit all-time lows in the 100-year history. Rates remain unchanged in 2021. That’s why to utilise low rates, AMC businesses bring NFOs, he added.

    The maximum number of funds (25) were launched in the index fund segment, which amassed Rs 4,082 crore, followed by other ETFs (24), which collected Rs 7,482 crore and fixed-term plans (23), which mobilised Rs 5,057 crore.

    In addition, investors were attracted to international funds and sectoral or thematic funds. The AMCs launched 12 sectoral or thematic funds, which raised Rs 13,237 crore and floated 12 overseas funds of funds, which mopped up Rs 6,351 crore.

    Experts believe that the dominance of index funds and ETFs (exchange-traded funds) within NFOs is not surprising, owing to a couple of factors.

    Existing AMCs have no restrictions in the number of passive products they can manufacture, whereas there are limits on other types of funds, Vasanth Kamath, founder and CEO at Smallcase, said.

    “Also, as investors (across retail, HNIs, institutional) are broadening and diversifying their portfolios, they’re preferring to take an index approach to new exposures and asset types, making it both efficient and simple versus having to build their own frameworks and strategies on these universes,” he said.

    In addition, the staggering growth of new demat accounts requires fund houses to offer a larger, diverse line-up of ETFs that were missing in the exchange-traded form factor, he added.

    Another factor for higher NFOs in the index category could be strong performance as the index delivered over 20 per cent last year.

    Further, the penetration of Indian investors towards index or ETF is low. So, AMCs try to capture their market share, Market Maestro’s Yadav said.