Monsoon is coming
According to news reports, massive on-field activity due to the upcoming election has been pushing up demand in specific sectors like FMCG, a good monsoon will further improve demand. Sale of air conditioners, refrigerators, and home appliances are also expected to increase. Tractor and car markers are also expecting higher demand.
A beta way to invest
Volatility measures the risk of security. A stock with higher volatility will see its price fluctuate rapidly within a specific period, whereas a low volatility stock will not see as much price fluctuation. Higher the volatility, the higher the perceived risk.
Beta is one of the ways of measuring volatility. The stock market’s beta is considered to be 1. Any stock with a beta of less than 1 would be less volatile than the market. Good quality, low beta stocks ensure that the portfolio is not very sensitive to market volatility.
Safe Haven smallcase consists of stocks whose beta is less than 0.65. The smallcase has returned 4.6% over the last 1 month compared to Nifty returns of 2.0%. The smallcase is trading at a 19% discount to Nifty PE.