Sectors that drove the Nifty in fiscal year 2016-17

The fiscal year 2016-17 has just concluded and the year was marked by a sharp rise in the Nifty. The markets bottomed on budget day on February 29th 2016 and rallied sharply from those levels. On the positive side, the markets were surely impressed by the Union Budgets maintaining fiscal discipline despite higher infrastructure investment and rural spending. This was viewed positively by the global investors and the rating agencies. Secondly, the BJP coming to power in key states like UP, Goa, Uttarakhand and Manipur was also a reiteration of the reforms process and is a kind of assurance that the government is unlikely to tilt towards populism. Continue reading

Benchmarking MFs

Should you really be playing the Dividend Yield game?

When Hindustan Zinc declared a record interim dividend of Rs.13,985 crore, it was the biggest payout by any Indian company. The government with 30% stake was the big beneficiary. Over the last few weeks, large PSU companies like Coal India, Hindustan Zinc, REC and BPCL have declared bumper dividends. Probably, a few more could follow before the current financial year ends. The question is; should you even attempt to play the dividend game. Continue reading

Dividend Game

Should you really be playing the Dividend Yield game?

When Hindustan Zinc declared a record interim dividend of Rs.13,985 crore, it was the biggest payout by any Indian company. The government with 30% stake was the big beneficiary. Over the last few weeks, large PSU companies like Coal India, Hindustan Zinc, REC and BPCL have declared bumper dividends. Probably, a few more could follow before the current financial year ends. The question is; should you even attempt to play the dividend game. Continue reading

FIIs are back in a big way into India; but are they back for good?

The month of March has been a hectic month in terms of FPI flows. In the first 14 trading sessions of March, FPIs infused nearly Rs.18,000 crore into equities on a net basis. This is in stark contrast to the withdrawal of Rs.80,000 crores by FPI between October 2016 and January 2017. This was the combined selling figure for equity and debt put together but it is still a fairly large number. The question, therefore, is whether the March FPI numbers are representative of a shift in sentiment or merely a one-off trend… Continue reading

Why D-Mart may actually deserve its rich valuations…

When D-Mart first announced the IPO, it was always looked upon as a very focused and profitable player in the retail space. In fact, D-Mart was everything that a typical retail player in India was not. D-Mart was not flashy, it did not exist in the most upmarket addresses and it did very little by way of advertisement and promotion. Its malls were stacked high, teeming with people, goods flew off the shelves and they were located more in residential areas. That became the biggest advantage for D-Mart when it came out with its maiden public issue. Continue reading

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