IRCTC plans to launch IPO

smallcases Rebalanced

Thematic, strategy-based and sectoral smallcases with a quarterly schedule have been rebalanced on September 13, 2019. These smallcases are now in mint condition. Rebalancing ensures the underlying idea of the smallcases remains intact.

You can apply updates to your invested smallcases and invest in freshly rebalanced smallcases with a brand new set of stocks.

Youth could thrust retail growth

A brand is a name or symbol that is easily identifiable as belonging to a company. Branding a product or service allows the company to distinguish it from competitors and clarify what the brand stands for in the market. For example, the Apple brand conveys a sense of luxury and candour. The company always ensures that this message is conveyed, whether one is visiting an Apple store or unpacking the latest iPhone package. 

Confidence regarding the experience, personal or professional image and social acceptance are all reasons that people buy into specific brands. A company that is able to tap into any of these aspects is guaranteed to benefit financially. 

According to a news report, the rising share of millennials and younger consumers in India’s retail market coupled with growing discretionary spending budgets are expected to drive the growth of the retail market to ₹124.25 trillion by 2026, up from ₹56.5 trillion in 2017. For example, the share of healthcare expenditure as part of discretionary spending is expected to rise from 9% in 2015 to 13% in 2025. Share of expenditure on personal care will go up from 11% to 14% during the same period. Spending on education and entertainment is expected to hit 9% up from 6% in 2015. Companies with strong brands will be able to leverage the trend. 

The Brand Value smallcase consists of companies that have been able to leverage their brand power into an outstanding financial track record over the years. The smallcase allows investors to hold a brand portfolio and benefit from their growth.

The smallcase has returned 72.91% over the previous 3 years compared to Nifty Midcap returns of 5.59%.

Realty industry cheers Corporate Tax cut

With the government slashing corporate tax rate to 25.2%, real estate experts said that the move is expected to have a positive impact on the sector and is likely to push demand for warehousing and commercial as well as residential real estate.

Niranjan Hiranandani, Chairman of Hiranandani Communities, said that the move would restart capital investment and was confident that developers will invest money on new projects and that people will buy the same. Ramesh Nair, a senior officer at property consultancy firm JLL has stated that reduction of minimum alternate tax from 18.5% to 15% will help affordable housing and developers of special economic zones. Anshuman Magazine, a senior official at real estate firm CBRE, said that reduction in the tax rate would boost the economy which would result in demand boost for warehousing and commercial real estate space.   

In related news, within the next 2 months, Government is expected to put together a ₹20,000 crore stressed asset fund for the nearly 3.5 lakh stalled real estate projects across the country. The government had announced a special fund to provide last-mile funding for the completion of stuck housing projects which are not NPAs or facing bankruptcy proceedings under NCLT to ensure that at least healthy projects are not pushed into bad debt.

The Realty Tracker smallcase comprises of real estate companies to allow investors to efficiently track and invest in the realty sector.

Markets Update

The market rally continued this week as well with both benchmark indices closing in the green. Nifty closed up 2.11% at 11,512.4 and Sensex closed at 38,822.6 up 2.13%.

Among sectoral indices, FMCG Tracker was the largest gainer and has surged 5.6% this week. Insurance Tracker also gained 5.1% during the week.

Indian Railway Catering and Tourism Corporation (IRCTC) which manages ticket booking, tourism and catering for Indian Railways is set to launch its initial public offering (IPO) on Monday. The IPO is for ₹645 crore and has a price band of ₹315-₹320 crore. The issue comprises an offer for sale of 2,01,60,000 shares and is a part of the government’s divestment process.

New features to improve transparency

At smallcase, we believe transparency is one of the most important characteristics of a financial instrument. Working in this direction, we have recently introduced lots of new features on the platform. Read the blog to know about them in detail.

Twitter Take

Nobody:

Absolutely nobody:

Us: “We now have over 10k followers ❤️”

A massive thank you for all the support 🙏

— smallcase (@smallcaseHQ) September 25, 2019