Karan Shah

*Business News Headlines* *Economic Times* Ø Adani gets NCLT nod for ₹4,101 Crore Lanco Amarkantak Power acquisition Ø Blackstone-owned International Gemological Institute files papers for Rs 4,000 Crore IPO Ø Centre urges states to adopt new tech initiatives for better farm data Ø Euro zone business activity gets boost from Olympics, PMI shows Ø Dabur signs MoU with Tamil Nadu government to set up its first manufacturing unit in South India Ø Wipro Hydraulics opens Rs 250 Cr manufacturing facility in Jaipur Ø India's steel sector's tech investment likely to hit $2.7 Bn by 2030: Report Ø InvestorAi secures Rs 80 Crore in equity funding from Ashish Kacholia Ø Hangyo Ice Cream raises Rs 211 Crore from Faering Capital Ø Formal job creation under ESIC up 6.9% to 2.16 Million in June: Payroll data *Business Standard* Ø Bajaj Auto gets DVA certificate for all 15 Electric vehicle models Ø Govt open to resolve $3.9 Billion tax dispute with Infosys, says report Ø Hindalco expansion plan entails $10 Billion investment, says KM Birla Ø ONDC integrates nine LSPs, three lenders to extend credit to customers Ø Warburg Pincus to sell entire 9.17% stake in Kalyan Jewellers India Ø LIC Housing Finance raises Rs 1,050 Crore through 5-year bond at 7.75% Ø BC Jindal Group lines up green energy foray with $2.5 Bn investment Ø Wipro extends relationship with John Lewis Partnership for 4 years Ø Opkey raises $47 Million in Series B funding led by PeakSpan Capital Ø Flipkart-backed super money aims to be among top five on UPI leaderboard Ø Softer rise in manufacturing output slows flash PMI to 60.5 in August Ø CBDT forms committee to review I-T Act, 'sunset' clauses to be eliminated Ø Govt bans 156 fixed dose combination drugs over health risk concerns *Financial Express* Ø Railway freight up 5% in Q1; freight charges to come down to maintain growth rates Ø India emerges top talent magnet as global job searches surge 60% Ø Sebi comes down hard on RIAs giving trading calls Ø Ambuja promoters to raise $500 Mn through sale of 2.84% Stake Ø RBI streamlines payments, allows instant auto top-ups for FASTag and NCMC Ø DGCA suspends approval for Bhopal-based International Aircraft Sales following safety audit Ø ERP testing startup Opkey raises $47 Million in Series B round from PeakSpan Capital, existing investors Ø Yuma Energy crosses 1 Million monthly battery swaps in 18 months *Mint* Ø MUFG invests additional $334 Million in DMI Finance Ø Zomato to shut down intercity ‘Legends’ services with immediate effect Ø India calls for united African stance on WTO reforms and key Global issues Ø GAIL, US-based Petron to form JV for Bio-Ethylene plant Ø Govt likely to discontinue sovereign Gold bond issue: Report Ø Budget Carrier AirAsia Gets $443 Million Private Credit Funding Ø Birla Fertility acquires BabyScience in ₹500-cr push for 100 IVF clinics by FY28

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Interesting to see that 2 external members of MPC are gunning for a rate cut. RBI members are more cautious before embarking on rate easing prematurely. ECB has cut rates and increased inflationary outlook in a bid to reduce real rates and prop up growth impulses. In India growth is expected to go up, and hence there is no urgency to reduce nominal or real rates. It appears that RBI will wait for inflation to sustainably come close to 4% before easing monetary policy. Bond yields will trade in a range of 6.90% to 7.10% for some time to come. Investors could lock into the current corporate bond yields at 7.50%-8% band as they are offering spreads of 250-300 bps higher than expected inflation 4.5%, which is more than adequate from a historical perspective. We expect FPI flows to increase into Government bonds going forward

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New Fund Offer : SBI Quant Fund :- Investments Significantly backed by DATA to Manage Biases. WHAT IS QUANT FUND ? A Quant Fund uses a data-driven approach to identify investment opportunities based on predefined factors like momentum, quality, value, and growth. It follows a disciplined, unbiased process to navigate market conditions, offering a systematic and reliable strategy for long-term wealth creation. WHY MULTI FACTOR PORTFOLIO ? Cyclical Nature of Factors: Individual factors tend to perform in different market cycles, leading to periods of outperformance and under performance. Multi-Factor Diversification: Combining multiple factors provides diversification, helping to smooth out the volatility of individual factor performance. Enhanced Risk-Adjusted Returns: A multi-factor approach aims to deliver better risk-adjusted returns by balancing the strengths and weaknesses of different factors. Reduced Drawdowns: Diversifying across factors can help in mitigating large drawdowns during market downturns. Investment Ease: Multi-factor strategies simplify investing by integrating various factors, reducing the need for managing separate allocations THE SBI MULTI - FACTOR MODEL *Momentum • Near & Long-Term Price Performance • 52 Week Highs *Growth • Earnings Growth, • Earnings Revisions, • Upgrades & Downgrades *Value • Ratios like Trailing & Forward Valuations, Dividend Yield, EV/Sales *Quality • Ratios like ROE, Leverage • Consistence in Earnings N J Fin Plan recommends to invest- Insure, based on your financial goals & risk appetite. N J Fin Plan can offer Mutual Fund Investments, Life, Health, Motor & Travel Insurance Online. To open E-wealth account with N J Fin Plan http://p.njw.bz/55096 Call / Write  N J Financial Planning Off No.15, Kappeesh Mall, Near Mulund Railway Station, M G Road, Mulund West, Mumbai 400 080 +98924 22480 / [email protected] www.njfinplan.com #financialplanning #sip #swp #mutualfundssahihey #mumbai #wealthcreation #factors #money #bestreturns

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The latest edition of FundsIndia Wealth Conversations (130+ slides) is out! Check out the visual curation of noise-cancelled, long term investing insights to help you become a better investor! Happy Investing 😀

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Nifty 50 is hitting all time highs but still there is no bubble. Nifty is trading at a PE Ratio of 23 and 1 Year Forward PE of 21. The PE Ratio is trading close to long term average. The bubble is in Mid, Small, Micro and SME. If you are worried with equity markets valuation then you can consider moving money to Large Caps. According to me, this is not the level to be out of the market.

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Sensex at 80,000: Riding the Frothy Wave Market Movement: The Sensex has soared to 80,000, fueled by exuberant investor sentiment. Most Indian equity indexes are trading at the higher end of their PE ratio valuations. The Froth Factor: Is a market crash imminent? Not so fast! We are currently in the midst of a full-blown bubble party. The froth—driven by massive domestic inflows and anticipated foreign investments—is expanding. Investor Strategy: Here is the golden rule: Invest only what you won’t need for the next 5 to 7 years. Stay steady, stay informed, and ride the waves with a long-term perspective. Remember, simplicity and continuous learning are key!

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PresentingInvesco India Multi Asset Allocation Fund – New Fund Offer – Unit @ Rs. 10/- till 11° Dec, 2024. A fund which aims to pick the right assets at the right time and capture market opportunities * Benefits of 3 - Gain exposure to Equity, Debt and Gold/Silver ETFs in one fund * Actively Managed - Monthly1 adjustments in asset allocation based on changing markets to optimize returns * Expertise - Informed asset allocation decisions using proprietary framework * Wider Reach  - Dynamically invests in domestic and overseas equities2 * Tax Efficient - Benefit from Long Term Capital Gains taxation of 12.5% if held for over 24 months3 Why choose Multi Asset Allocation Funds? Markets are dynamic and it is hard to predict which asset class will do well in a particular market condition. There are periods when equities outperform, while during uncertain times they may correct sharply. However, when equities are volatile, other asset classes such as debt, gold/silver may help limit the downside. In short, no single asset class can deliver in all types of market conditions. Therefore it is prudent to diversify your investments across multiple asset classes, so when one asset class lags behind, the others can make up for it – helping to minimize volatility and maximize returns. But selecting the right mix of assets in ever changing market conditions is hard. The smart thing to do is to invest in Multi Asset Allocation Funds. These funds invest in Equity, Debt, Gold/Silver with an aim to navigate different market conditions by dynamically allocating across asset classes to help optimize returns. N J Fin Plan recommends to invest- Insure, based on your financial goals & risk appetite. N J Fin Plan can offer  Mutual Fund Investments,  Life, Health, Motor & Travel Insurance Online. To open E-wealth account with N J Fin Plan http://p.njw.bz/55096 Call / Write  N J Financial Planning Off No.15, Kappeesh Mall, Near Mulund Railway Station, M G Road, Mulund West, Mumbai 400 080 +98924 22480 / [email protected] www.njfinplan.com #financialplanning #mumbai #mutualfundssahihey #sip #swp #wealthcreation

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India’s Investment Shift: From FDs to Equities Indian savers are moving away from traditional fixed deposits to equities and mutual funds in search of better returns and tax efficiency. Switching to a systematic investment plan (SIP) highlights this trend, which is reshaping the nation’s financial landscape.  A Brief History: Fixed deposits, gold, and property were once the pillars of household savings. Today, high inflation and declining FD rates are pushing more individuals towards the capital market. Changes in the capital gains tax structure have further encouraged participation in equities. Impact on India: With bank deposits at Rs. 215 lakh crore and mutual funds at Rs. 67 lakh crore (31% of total deposits), this shift signifies a major reallocation of household assets. It boosts capital markets and supports economic growth.  Key Conclusions:  1. Tax Efficiency: Understanding tax implications is crucial for maximising returns. 2. SIP vs. FD: SIPs offer a flexible and potentially higher return option compared to traditional FDs. 3. The trend is clear—Indian savers are evolving into investors. #ValuEthics #InvestmentShift #MutualFunds #IndianEconomy #TaxPlanning #Equities #StockMarket #FixedDeposit #FD #SIP #Investing #bankFD #Tax Disclaimer: For educational purposes only. Consult a financial advisor before investing.

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Can credit risk funds make a comeback in SEBI's new asset class? ✅ In SEBI's proposal of a new asset class, SEBI gave 2 examples of investment strategies that can be considered. Long-short Equity Fund Inverse ETF / Fund. ✅ But it was quiet on a popular strategy that went out of vogue after the Franklin Templeton credit crisis. The credit risk fund. ✅ As I had pointed this out in my May 20, 2024 story @moneycontrolcom personal finance, debt PMSes have taken away the business of credit risk funds from mutual funds. ✅ This category though, can and should make a comeback to mutual funds under the new asset class. It's a risky strategy and should be sold to only those who understand the risks.

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What has triggered the global sell-off! Lot of theories are emerging about Carry Trade lately, that is borrowing in a low interest rate currency and investing in country with high interest rates in different assets like bonds, equities etc. It is somehow a vague definition and doesn’t give the right picture and why unwinding of carry trade after the rate increase by Bank of Japan has triggered the global sell off. Carry trades have hardly anything to do directly with equities, means one can borrow in it’s own currency to invest in equities if he assumes potential of equity is higher than bonds in his country and he will make better return within the repayment period. Carry trade is a transaction undertaken to benefit from the interest rate differential between two countries for eg. Japan & US. An investor can borrow in a low-interest-rate currency called funding currency (Yen here) and can invest in the bonds of high interest rate currency called investment currency (USD here). Why is it linked to market sell-off As bank of Japan raised rates after 17 years hiatus to tame raising inflation, borrowing cost in Yen increased, prompting investors to sell US Bonds and return the borrowed funds. As investors sell dollars and return back to yen, the dollar start deprecating reducing the returns on equities also, investors in equities also tend to sell to protect their return due to USD weakening triggering sell off in equities. Additionally, carry trades are often highly leveraged transaction where stocks can also be underlying, a sudden reversal of carry trade may trigger margin calls forcing investors to liquidate underlying assets including stocks. Unwinding of carry trade is just one piece of the complex puzzle that has forced Bank of Japan to shift it’s 17 years old policy stance of near to zero short term interest rates and why Nikkei index has lost 17% in a week’s time. #Globalselloff #marketcrash #Carrytrade ClovekWealth

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India’s investment landscape is witnessing a transformative shift, with quantitative strategies taking center stage. As highlighted in Nuvama Group’s latest AltLens report, in India, Quant PMS & MF AUM has 𝐬𝐮𝐫𝐠𝐞𝐝 338𝐱 𝐨𝐯𝐞𝐫 𝐭𝐡𝐞 𝐥𝐚𝐬𝐭 𝐝𝐞𝐜𝐚𝐝𝐞, 𝐰𝐢𝐭𝐡 𝐚 𝐂𝐀𝐆𝐑 𝐨𝐟 86% 𝐨𝐯𝐞𝐫 𝐭𝐡𝐞 𝐩𝐚𝐬𝐭 𝐭𝐡𝐫𝐞𝐞 𝐲𝐞𝐚𝐫𝐬. Category III Alternative Investment Funds (AIFs) following Quant Approach have achieved a phenomenal 93% 𝐲𝐞𝐚𝐫-𝐨𝐧-𝐲𝐞𝐚𝐫 𝐠𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐜𝐨𝐦𝐦𝐢𝐭𝐦𝐞𝐧𝐭𝐬 𝐫𝐚𝐢𝐬𝐞𝐝, reflecting a growing appetite for systematic, data-driven investment approaches. Quant-based strategies are emerging as a game-changer, leveraging advanced analytics, mathematical models, and robust algorithms to navigate market volatility and inefficiencies. Globally, quant funds manage ~$16 trillion, with one in five hedge fund managers following a quant approach and the top five hedged funds globally being quantitative. At Wright Research, we are proud to lead this revolution with our cutting-edge quant strategies that combine factor investing, machine learning, and robust financial research. Our innovative approach aims to deliver alpha with precision, scalability, and resilience. With our PMS we have shown a return of 80%+ in 16 months beating the benchmark by 40% and building a sticky corpus of 380 cr. 🌟 𝐖𝐡𝐲 𝐝𝐨𝐞𝐬 𝐈𝐧𝐝𝐢𝐚 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐐𝐮𝐚𝐧𝐭 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞? - Eliminates emotional biases like fear and greed - Adapts to dynamic market conditions with discipline - Offers downside protection and differentiated exposures As India aligns with global best practices, we believe the quant revolution is poised to redefine the investment ecosystem. Are you ready to explore the future of investing? https://lnkd.in/dQ6aB5hr #QuantInvesting #WrightResearch #DataDrivenInvesting #AIF #IndiaInvestments #Innovation

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#WealthWatch Factor-based funds are a type of active funds, but they tilt the portfolios towards certain stock characteristics to achieve specific risk and return objectives. Mayank Misra INDmoney Jiral Mehta FundsIndia Anant Ladha, CFA CA CFP LL.B. Invest Aaj For Kal Read the story by Nachiket Kelkar https://lnkd.in/gyqbvqSA #factorfunds #investments #marketcap #money #financialeducation

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Foreign Portfolio Investors Shift to Bearish Bets Amid Geopolitical Tensions and Regulatory Changes! 1. Foreign Portfolio Investors (FPIs) in Indian Markets - FPIs raised net bearish bets on Nifty and Bank Nifty futures by 71,095 contracts overnight to 107,486 contracts. - This indicates heightened caution due to rising tensions in West Asia and the recent amendment to the India-Mauritius tax treaty. - FPIs held Indian shares worth $769.5 billion as of 31 March. 2. Change in FPI Stance - FPIs shifted from a cumulative bullish position to a net short position. - Such a significant overnight increase in bearish positions is uncommon and indicates growing concerns. 3. Possible Reasons for the Shift - Rising tensions between Israel and Iran may have influenced FPIs' decision-making. - The recent amendment to the India-Mauritius tax treaty may also be a factor spooking FPIs. 4. FPI Selling Activity - FPIs have intensified selling Indian equities since Iran's retaliation against Israel. - They have net sold Indian shares worth ₹18,698.31 crore in the past four sessions through Thursday. 5. Market Impact - Renewed conflict in West Asia could lead to crude oil hitting $100 a barrel. - This could widen India's trade deficit and negatively impact the rupee. Overall, FPIs' increased bearish bets reflect concerns about geopolitical tensions and regulatory changes, leading to intensified selling activity in Indian equities and potential market volatility.

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MPC- Change in stance, opening up to new possibilities RBI kept rates on hold, however changed stance to neutral showing flexibility to adjust to the evolving situation. The change in stance paves way for start of rate cut cycle, if not immediately definitely in near term #interestrates #mpc #inflation #growth #centralbank #economics #fixedincome #investing

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Markets , SIPs, Special Situations and more with Groww & Aashish P Sommaiyaa WhiteOak Capital

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In our post on Ist October, we suggested that Nifty has generated a sell signal, and if it breaks 9th September low of 24753.15 by 19th October, the big reversal will be confirmed. We again suggested Friday that if 24753.15 is gone, then the Nifty may go down as low as 21000-19000. Now Nifty has broken the 24753.15 level, and now Nifty should break June 4th low of 21281.45 in the next 3 months. On Friday, we also suggested lightening the equity exposure, and today, both midcap and smallcap indices have crashed, hitting investors' portfolios a little hard. Till now, these two indices have been having a free run. Now, it will be quite a tough time for PMS schemes as it is going to be very difficult to exit from these positions in a falling market. Now, the boys will be separated from the men. As Warren Buffet famously said, " Only when the tide goes out do you discover who's been swimming naked." We advise extreme caution going ahead. Wish you all the very best! 👍✨

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