This is the archive of all articles and analysis related to the nature of stock market risk and reward
On Nov 6th Nifty closed at 12263 within striking distance of its Jan 14th 2020 close of 12362, something that no would have believed a few months ago when on March 23rd we saw the biggest intraday fall and the 10-year Nifty SIP Return fell to 2.3% and14-year SIP Return to 5%. In spite of…
Continue reading →It is well known that stock market returns are clumped: it will rain returns in a big way followed by years of frustration. In this article, we investigate the annual and monthly returns of the Sensex from April 1979 and show the annualized return after 41 years depend on just a few good years/months. All…
Continue reading →On 14th Oct 2020, the Nifty P/E ratio or PE ratio was 34.87. This was an all-time high from 1st Jan 1999. This means the Nifty 50 was priced at 34.87 times its earnings. The latest PE ratio at the time of publication is 34.37 (23rd Oct 2020). Investors are worried if this high PE is…
Continue reading →These are the 30 Sensex stocks with weights for September 2020. Sensex is the oldest stock index of India. It has the top 30 stocks by market capitalization trading in the BSE. Notice the huge allocation to RIL and HDFC Bank which can result in concentration risk: Do index fund returns depend upon just a few…
Continue reading →List of Nifty Next 50 stocks with index weightage and market capitalization are tabulated for October 2020. These are 50 companies from NIFTY 100 after excluding the NIFTY 50 companies representing about 10-11% of the free-float market capitalization of the stocks listed on NSE. To be included in the Nifty Next 50, a stock must…
Continue reading →These are the 30 Sensex stocks with weights. Sensex is the oldest stock index of India. It has the top 30 stocks by market capitalization trading in the BSE. Sensex 30 Companies List Company Name Holding(%) Sector Reliance Industries Ltd. 15.3358 Crude Oil HDFC Bank Ltd. 11.1176 Bank Infosys Ltd. 9.0531 IT Housing Development Finance…
Continue reading →Nifty 50 companies with index weightage are listed for November 2020. These 50 out of the 1600 companies traded on the NSE representing 65% its float-adjusted market capitalization. The index started trading in April 1996. To be included in the Nifty, a stock must have an impact cost of less than 0.5% during the last…
Continue reading →As per Finance Bill FY 2020-2021, a person who receives dividend income from stocks and mutual funds must add it to total income and pay tax as per slab. Does this mean investors should stop buying dividend stocks since a portion of it would be lost to tax?
Continue reading →The S&P MERVAL index has registered some astounding returns. Its 10-year SIP return is 36.68% (yes, that is annualized!) a 15-year SIP return of 30.25% and a 5-year SIP return of 30.06%. If you have wondered why the Indian and US stock markets have been moving up in spite of the pandemic, these returns from…
Continue reading →List of Nifty Next 50 companies (stocks) with index weightage and market capitalization are tabulated for Feb 2021. These are 50 companies from NIFTY 100 after excluding the NIFTY 50 companies representing about 10-11% of the free-float market capitalization of the stocks listed on NSE. To be included in the Nifty Next 50, a stock…
Continue reading →Nifty 50 stocks with index weightage and market capitalization are tabulated for August 2020. These 50 out of the 1600 companies traded on the NSErepresenting 65% its float-adjusted market capitalization. The index started trading in April 1996. To be included in the Nifty, a stock must have an impact cost of less than 0.5% during…
Continue reading →Readers may recall that the Nifty/Sensex moved up since Feb 2018 (until the crash this year) while the rest of the market moved down. We had reported that this market imbalance/inhomogeneity lead to an all-time high return difference between Nifty 50 vs Nifty 50 Equal-weight indices in Dec 2019 and also pointed out that Market crash…
Continue reading →The NSE has made several changes to its indices in its late-June portfolio reset. Notable are fives changes in Nifty Next 50, twelve from Nifty Midcap 100 and twenty-five from Nifty 500. Here is a selected listing.
Continue reading →If we look at the fall in Nifty from its early Feb 2020 levels it certainly feels like a crash. After all, we witnessed the biggest intraday fall that sent the 10-year Nifty SIP Return to 2.3%; 14-year SIP Return to 5% and we also saw the biggest intraday gain after 10Y and then a…
Continue reading →A 19% monthly return from the stock market without any background or context would seem something to cheer about. However with India at least weeks away from flattening the curve, the worst for stock investors is yet to come.
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