Shouldn’t the Fed’s rate hike matter to stocks?
Despite the Fed’s decision to change rate policy much earlier than expected, markets took a little respite before continuing their upward journey. This means that global markets are viewing this widespread rally as a recovery in the fundamentals of the economy and not just as a market buoyant on central bank-induced liquidity. According to Ajay Tyagi, equity fund manager at UTI MF, any rate hike is an endorsement of the fact that the economy is on the right track. READ MORE
The path of finance is confusing
Despite being well capitalized and provisioned to deal with the pandemic, finances can be affected by growth, says Deepak Shenoy, founder of Capital Minds. In an interview, he said, despite the Supreme Court order regarding the removal of NPAs where they restricted stating that NPAs were good news, the lack of moratoriums for companies this time may create more stressed assets. for finances in the next 6 to 8 months. READ MORE
History may not repeat itself, but it rhymes!
In terms of small cap cycles in the last decade, the small cap index has recovered about 290% twice from their respective declines. This time, the index is up 182% so far. This corresponds to some of the small caps that posted their best quarterly and annual results in the recent results call. READ MORE
Courage is back! This time for a long time …
Prashant Jain, CIO, HDFC AMC, is of the opinion that stocks have experienced stretched underperformance in recent years, and from what you’ve seen, the longer the underperformance period, the more sustained and sharp the outperformance should be. Speaking about one of the important supporting factors for value resurgence in this interview, he says that the corporate NPA cycle is clearly over for India. READ MORE
What is the probability of losing a bet in this bull market?
This bull market rally has been one of the steepest and most broad-based rallies in history, with every two out of three stocks among the 2,346 listed stocks doubling their share price in the past 12 months. But what was your probability of losing your bet in this bull market? It’s only 4.6% or one in twenty stocks that didn’t get any return! READ MORE