Latest news with #NiftyIndex
India Gazette
3 hours ago
- Business
- India Gazette
Valuation concerns return to Indian market, especially in Midcap stocks: Jefferies
New Delhi [India], June 20 (ANI): According to a report by Jefferies, the Indian stock market is once again facing concerns around high valuations, particularly in the midcap segment. The report pointed out that the recent market rally has pushed valuations to high levels, raising questions about sustainability and risks going forward. Jefferies stated, 'The rally in the market means valuations have become an issue again, particularly in the mid-cap space'.The report highlighted that the benchmark Nifty Index is now trading at 22.2 times its 12-month forward earnings after rising 14.1 per cent from its recent low on April 7. The midcap space has seen even sharper gains. The Nifty Mid-Cap 100 Index has surged by 23.7 per cent since April 7 and is now trading at a steep valuation of 27.1 times 12-month forward earnings. Due to such high valuations, many corporates are once again placing equity in the market to take advantage of the bullish sentiment. The report added that the equity supply has increased sharply, with companies raising around USD 7.2 billion in May and USD 6 billion so far in June. Jefferies noted that this wave of equity supply poses the main risk to the market. Before the market correction that began in late September last year, monthly equity supply was running at around USD 7 billion. The report also highlighted a shift in market focus since the Union Budget announcement on February 1. There has been a noticeable rotation from investment-led themes to consumption-led themes. This shift has been supported by a softer monetary policy environment, which has benefited consumer finance stocks. However, the report acknowledged that any upcoming investment cycle is likely to be slower and more prolonged, unlike the boom-bust cycle that occurred during FY03-FY17, which led to overcapacity, especially in the power sector. The report outlined that while the Indian markets are enjoying a strong rally, especially in the midcap space, rising valuations and heavy equity supply could pose risks. (ANI)
Times of Oman
5 hours ago
- Business
- Times of Oman
Valuation concerns return to Indian market, especially in Midcap stocks: Jefferies
New Delhi: According to a report by Jefferies, the Indian stock market is once again facing concerns around high valuations, particularly in the midcap segment. The report pointed out that the recent market rally has pushed valuations to high levels, raising questions about sustainability and risks going forward. Jefferies stated, "The rally in the market means valuations have become an issue again, particularly in the mid-cap space". The report highlighted that the benchmark Nifty Index is now trading at 22.2 times its 12-month forward earnings after rising 14.1 per cent from its recent low on April 7. The midcap space has seen even sharper gains. The Nifty Mid-Cap 100 Index has surged by 23.7 per cent since April 7 and is now trading at a steep valuation of 27.1 times 12-month forward earnings. Due to such high valuations, many corporates are once again placing equity in the market to take advantage of the bullish sentiment. The report added that the equity supply has increased sharply, with companies raising around USD 7.2 billion in May and USD 6 billion so far in June. Jefferies noted that this wave of equity supply poses the main risk to the market. Before the market correction that began in late September last year, monthly equity supply was running at around USD 7 billion. The report also highlighted a shift in market focus since the Union Budget announcement on February 1. There has been a noticeable rotation from investment-led themes to consumption-led themes. This shift has been supported by a softer monetary policy environment, which has benefited consumer finance stocks. However, the report acknowledged that any upcoming investment cycle is likely to be slower and more prolonged, unlike the boom-bust cycle that occurred during FY03-FY17, which led to overcapacity, especially in the power sector. The report outlined that while the Indian markets are enjoying a strong rally, especially in the midcap space, rising valuations and heavy equity supply could pose risks.
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Business Standard
12 hours ago
- Business
- Business Standard
Valuations, fresh equity supply key risk to Indian stock market: Chris Wood
High valuations, especially in the midcap space, coupled with fresh supply of equity via the initial public offers (IPOs) are the main risks to the Indian stock markets, cautioned Christopher Wood, global head of equity strategy at Jefferies in his recent note to investors, GREED & fear. The rally in the market (since recent lows), Wood cautions, means that valuations have become an issue again, most particularly in the mid-cap space. The Nifty Index now trades at 22.2x 12-month forward earnings after rising by 14.1 per cent from its April 7 low. While the Nifty Mid-Cap 100 Index trades at 27.1x 12-month forward earnings, following a 23.7 per cent gain from its April 7 low. 'This is also why corporates are again placing equity to take advantage of such valuations. The equivalent of $7.2 billion of equity supply was raised last month and $6 billion so far in June. It is this supply which poses the main risk to the market. Equity supply was running at around $7 billion a month prior to the correction, which began in late September last year,' Wood wrote. Mid, smallcaps steal the show From April 7 levels, while the Nifty 50 has rallied nearly 12 per cent till date, the up move in the mid-and smallcap indices has been sharper. The Nifty Midcap 150 index and the Nifty Smallcap 250 indexes have surged nearly 17 per cent and 18.5 per cent respectively during this period, ACE Equity data shows. Meanwhile, primary market activity is set to rebound in the coming week with at least four companies planning to raise a total of about ₹15,000 crore ($1.7 billion) via IPOs, reports suggest. Some prominent ones include Kalpataru, Ellenbarrie Industrial Gases, and Globe Civil Projects. HDB Financial Services Ltd., a unit of India's biggest private lender HDFC Bank, is also planning to launch its $1.4 billion IPO on June 25, reports suggest. This will be one of the biggest IPOs since Hyundai Motor India IPO in October 2024 that raised over Rs 27,000 crore. Capex theme The focus in the Indian market since the budget announcement on February 1, Wood wrote, has rotated to playing consumption rather than investment, helped by the monetary easing context with consumer finance stocks rallying sharply. The property market, now in its 5th year of an upturn, has further to run, he believes. 'Pre-sales growth of the top seven developers covered by Jefferies is forecast to accelerate to 22 per cent YoY in FY26 after slowing to 17 per cent YoY in fiscal year 2024-25 (FY25) ended March 31, a four year low. A lower mortgage rate, now at 8 per cent and expected to fall to 7.5 per cent when the latest Reserve Bank of India (RBI) rate cuts are passed on, should help boost sales in the affordable and mid-income segments,' he said. Portfolio rejig Wood has also rejigged his India portfolio, with the investments in Larsen & Toubro, Thermax and Godrej Properties will be removed and replaced by investments in TVS Motor, Home First Finance and Manappuram Finance, with four percentage points each. An additional one percentage point each will be added to the existing investments in PolicyBazaar and Bharti Airtel, he said. The investment in Larsen & Toubro in the global long-only equity portfolio has been replaced by an investment in Saint-Gobain, a French construction materials company. In the Asia ex-Japan long-only portfolio, too, the investment in Larsen & Toubro will be removed and replaced by an investment in PolicyBazaar, he said.
Economic Times
4 days ago
- Business
- Economic Times
From Rs 25,000 monthly salary to Rs 5 crore savings in 11 years: How a middle-class employee achieved his dream
Inspired by Long-Term Investing Crisis as an Opportunity Living Within Means and Planning Ahead Avoiding Common Pitfalls Achieving financial independence on a modest salary may seem out of reach for many middle-class professionals. But over 11 years, one salaried individual steadily built a net worth of Rs 5 crore—without inheritance, business income, or sudden windfalls. His journey, shaped by disciplined saving, long-term investing, and strategic career choices, offers practical insights for anyone looking to grow wealth from 2013, a middle-class employee began his career with Rs 25,000 monthly salary. From the very beginning, he set aside 25% of his income as savings. His financial discipline grew stronger after he shifted back to his hometown, eliminating rental expenses and increasing his savings rate to 75%. By 2024, this approach helped him build a net worth of Rs 5 crore—a milestone he called his biggest achievement of the his entire financial journey on the INDmoney YouTube channel, he credited this financial transformation to three key factors: prioritising career growth to increase his income, practising delayed gratification, and staying committed to equity investing. Importantly, he noted that having no debt and not paying rent gave him a significant head start.A defining moment in his investment journey came during his stint as a wealth manager. There, he came across an ITC employee whose employee stock options had grown into a Rs 5 crore corpus over two decades. This real-life example solidified his faith in the power of long-term equity investing and compounding entered the stock market in 2013–14, gradually building a portfolio that yielded annualised returns of around 18–20%. His stock-picking approach centred on small companies in growing industries, avoiding highly saturated market leaders. He preferred businesses that generated healthy cash flows, had minimal debt, and avoided red flags like promoter pledging or frequent equity 2020 market crash proved to be a turning point. His portfolio fell by 45% during the COVID crisis. Instead of panicking, he doubled down and bought more stocks as the Nifty Index dropped to the 8,000–10,000 range. This aggressive move paid off, helping his portfolio recover strongly in the following 90% of his assets are in equities, while the remaining 10% is split between cash, NPS, and EPF. He has also started exploring passive income sources such as REITs and infrastructure investment trusts, including IndiGrid, which offers nearly 10% achieving a high net worth, he remains cautious about early retirement. His current monthly expenses stand at Rs 1–1.2 lakh, and he believes that Rs 5 crore may not be enough to sustain financial independence in the long term, especially with rising education and lifestyle also highlighted how pursuing an MBA helped boost his income significantly, compared to peers who joined the workforce right after engineering. In his early years, he opened a PPF account and delayed luxury purchases, even buying his first iPhone only after accumulating a Rs 10 lakh back, he cautioned against getting swayed by investment fads like cryptocurrencies or bankrupt stocks. He emphasized the importance of building a solid foundation first and sticking to long-term fundamentals. In one of his online interactions, he underlined that staying invested for the long run was far more effective than trying to time the summed up his philosophy by saying that while investing is undoubtedly challenging, the long-term grind of working 9 to 5 for 40 years is even harder.
Time of India
6 days ago
- Business
- Time of India
From Rs 25,000 monthly salary to Rs 5 crore savings in 11 years: How a middle-class employee achieved his dream
Inspired by Long-Term Investing Crisis as an Opportunity Living Within Means and Planning Ahead Avoiding Common Pitfalls Achieving financial independence on a modest salary may seem out of reach for many middle-class professionals. But over 11 years, one salaried individual steadily built a net worth of Rs 5 crore—without inheritance, business income, or sudden windfalls. His journey, shaped by disciplined saving, long-term investing, and strategic career choices, offers practical insights for anyone looking to grow wealth from 2013, a middle-class employee began his career with Rs 25,000 monthly salary. From the very beginning, he set aside 25% of his income as savings. His financial discipline grew stronger after he shifted back to his hometown, eliminating rental expenses and increasing his savings rate to 75%. By 2024, this approach helped him build a net worth of Rs 5 crore—a milestone he called his biggest achievement of the his entire financial journey on the INDmoney YouTube channel, he credited this financial transformation to three key factors: prioritising career growth to increase his income, practising delayed gratification, and staying committed to equity investing. Importantly, he noted that having no debt and not paying rent gave him a significant head start.A defining moment in his investment journey came during his stint as a wealth manager. There, he came across an ITC employee whose employee stock options had grown into a Rs 5 crore corpus over two decades. This real-life example solidified his faith in the power of long-term equity investing and compounding entered the stock market in 2013–14, gradually building a portfolio that yielded annualised returns of around 18–20%. His stock-picking approach centred on small companies in growing industries, avoiding highly saturated market leaders. He preferred businesses that generated healthy cash flows, had minimal debt, and avoided red flags like promoter pledging or frequent equity 2020 market crash proved to be a turning point. His portfolio fell by 45% during the COVID crisis. Instead of panicking, he doubled down and bought more stocks as the Nifty Index dropped to the 8,000–10,000 range. This aggressive move paid off, helping his portfolio recover strongly in the following 90% of his assets are in equities, while the remaining 10% is split between cash, NPS, and EPF. He has also started exploring passive income sources such as REITs and infrastructure investment trusts, including IndiGrid, which offers nearly 10% achieving a high net worth, he remains cautious about early retirement. His current monthly expenses stand at Rs 1–1.2 lakh, and he believes that Rs 5 crore may not be enough to sustain financial independence in the long term, especially with rising education and lifestyle also highlighted how pursuing an MBA helped boost his income significantly, compared to peers who joined the workforce right after engineering. In his early years, he opened a PPF account and delayed luxury purchases, even buying his first iPhone only after accumulating a Rs 10 lakh back, he cautioned against getting swayed by investment fads like cryptocurrencies or bankrupt stocks. He emphasized the importance of building a solid foundation first and sticking to long-term fundamentals. In one of his online interactions, he underlined that staying invested for the long run was far more effective than trying to time the summed up his philosophy by saying that while investing is undoubtedly challenging, the long-term grind of working 9 to 5 for 40 years is even harder.
