Home Blogs Markets continue winning streak
The smallcase Newsletter

Markets continue winning streak

Markets continue winning streak
Reading Time: 1 minutes

Earn smartly through dividends

A stock’s sensitivity to market movements is measured by its beta. Smart beta strategies seek to combine the advantages of passively following a benchmark with those of active asset/weight allocation. Most indices like Nifty & Sensex are market cap weighted. Smart beta strategies, in turn, construct a diversified portfolio in a rules-based manner while incorporating a different weighting scheme. Stocks can be screened and selected based on a variety of factors such as value, size, or momentum. The aim is to take advantage of mispricing of these factors by the market, in order to generate returns higher than the benchmark.

The Dividend – Smart Beta smallcase contains stocks which have been increasing their dividends on a consistent basis, weighted in a manner to minimise the volatility of the smallcase. It has returned a whopping 114% in the past 5 years as opposed to Nifty returns of 73%.

A whole new realty

The Indian realty segment, which witnessed major headwinds in the second half of 2018 due to the NBFC crisis, has received positive stimulus in the form of 7% GST rate cut for premium and affordable homes. The sector is expected to contribute nearly 11% of GDP by 2020.

Tax concessions announced in the budget for home-owners, as well as the launch of India’s first REIT last month, have garnered positive sentiment around Indian realty, making it a lucrative sector for the rest of 2019. Residential property sales rose 58% YoY across the top 7 cities during the March-ended quarter. The much-anticipated rate cut announced by the MPC should further boost sentiments.

The Realty Tracker smallcase is apt for investors looking for exposure to India’s real estate segment. The smallcase returned a eye-watering 18% in the past 1 month, compared to a Nifty return of 6% in the same period. Current PE of this smallcase is 13.8, which is 39% less than Nifty PE of 22.4.

Markets update

Markets continued their winning streak for the seventh week. Nifty once again breaching the 11660 mark, underpinned by the surge in FII inflows as well as a 25 bps rate cut announcement by RBI.

Nifty index closed at 11665.95 (+0.59%) on Friday and the Sensex at 38862.23 (+0.46%).

You may want to read

image Indian Markets Celebrate New Milestones 
Reading Time: 3 minutes
India's Q2 GDP performance stole the show, clocking in at an impressive 7.6%, a pleasant surprise that outpaced the general consensus. Notably, India maintained its lead over China, which posted a GDP growth of 4.9% in the July-September quarter.
image Beyond the Hype: Are IPOs a Hit or Miss?
Reading Time: 3 minutes
Last week on the D-street was like an IPO carnival! The initial public offering (IPO) market seems to be in an unprecedented bull wave, with the debut of five IPOs aiming to raise ₹7,400 crore from investors. This is no small feat — five IPOs in a week is a rare sight. So, diving into this week, let's explore India's consumption story. Amidst all the talk about India becoming a major economy, increased consumption stands out as a crucial pillar for this growth.
image The Power of The Great Indian Consumer 
Reading Time: 4 minutes
Even in the tough times of 2020, the festive season was a saving grace, injecting a much-needed boost into the economy. It's incredible how the Indian consumer wields such influence. So, diving into this week, let's explore India's consumption story. Amidst all the talk about India becoming a major economy, increased consumption stands out as a crucial pillar for this growth.

Your email address will not be published. Required fields are marked *

Markets continue winning streak
Share:
Share via Whatsapp