GAGA Share Market News

[hfe_template id='11223'] [ad_1] Synopsis After five months of cooling off in the mid-cap segment, can we say valuations are fairly priced? The answer is no. But does it mean that we should avoid this segment? The answer is, again, no. The reason: We are at a stage where, rather than broad-brushing, it is better to adopt a sector-by-sector and stock-by-stock approach. If the Nifty and market breadth stay positive in the coming trading sessions, it is likely we will see mid-caps gaining strength. It may also probably signal the end of this phase of correction. In the short term, stock prices are impacted by events and the narratives built around them. Over the next few weeks, it will be about how things pan out on the India-Pakistan border. The fact is that, apart from guesses and speculation, no one has and will have any idea on what will happen or when. There is another narrative: Developments in the global markets. However, stock prices and the absolute value of stocks...

[hfe_template id='11223'] [ad_1] Synopsis There are phases when mid-cap stocks come under pressure and are among the worst performers. We have seen one such phase in the past few months. Yet, if you take the last 10 years into account, they have provided the best returns, with mid-cap indices being the top performers in that period. If you did not own mid-caps, your returns in one of the longest bull runs, would not have been very high. One reason why mid-caps do well when an economy like India grows rapidly is that these companies are nimble and capable of improving their operating matrix. And for mid-caps, “cost of capital” is an important part of this matrix. So lower costs on this front works in their favor. Some 15 years back, a company from a large industrial house raised money by floating corporate bonds at X% interest. A mid-size company raised money at X% plus 200 basis points. It was thus paying 2% more for the capital, putting it at a disadvantage. Today, that...

[hfe_template id='11223'] [ad_1] Synopsis When it comes to the stock market, it is not easy to think beyond the present. Recall August 2024. Nobody was thinking anything remotely bearish or negative about the market. Today, no one is able to think of a time beyond the current phase of correction. The fact is that it is extremely difficult to think beyond the present because, to do that, you have to think long-term. Also, to a certain extent, think contrarian. But to make better returns, you have to develop that ability to think and act differently. And do it as a process. Six months back, it appeared that nothing wrong could happen to the Indian stock market. Today, it is difficult to think that there would ever be a recovery. Should one give so much importance to what is happening to the Nifty and Sensex? Let’s see things in perspective. Consider a company whose products are seeing increased demand because its management began thinking about clean energy 25 years ago. I...

[hfe_template id='11223'] [ad_1] Synopsis If you had to randomly pick just two stocks, which sector would you pick them from? Sugar, auto, banks, pharma, IT, capital goods, or metals? While investing, if you are able to take into account a few small things, it will make a big difference to the returns you make both in the medium and long term. Now, because the market is bearish, you may tend to be more careful while investing. But the fact is that the need to apply filters is greater when the market is controlled by bulls, as the probability of making mistakes is higher. Each time there is a correction, especially one that extends a few weeks, we see investors getting divided into two distinct sets. The first will justify buying wrong stocks by calling themselves “long-term investors”. The rest, genuine long-term investors, will remain focused on buying the correct business. Now what is a “correct business”? Simple: One with a track record of growth; one that does not re...

[hfe_template id='11223'] [ad_1] Synopsis Markets are about probability. What is the probability that, in 2025, the global equity markets will see higher volatility than even 2024? Given that the US will have a new president whose provocative statements could create confusion in the currency markets, the probability is that we will see more volatility in the coming months. So, be ready. With the market undercurrent likely to be bullish, investors – especially those focused on mid-cap stocks – need to learn to deal with volatility, while maintaining a bullish stance. There are many ways to deal with volatility. And one would be to have more quantitative and qualitative checks before buying stocks. There is this reality of the market. Even though mid-cap stocks may have come under pressure in certain phases, the fact remains that they have delivered the best returns in the past 10 years. In fact, if you did not have mid-caps in your portfolio, your returns even in the long...