Day Trading Stocks & Futures

TraderRavi

Gayi Bhains Pani Mein
PMS run by Porinju, Maheshwari & top fund houses all bled in September



On Dalal Street, the bears have not spared even the most experienced investors.
As the tide turned in the market after a long bull run, funds managed by portfolio management services (PMS) of renowned investors took a big hit in September.

BSE Sensex, BSE Midcap index and BSE Smallcap index slipped 6.25 per cent, 12.54 per cent and 16 per cent, respectively, during the month.
Kochi-based investor Porinju Veliyath’s PMS witnessed a 20 per cent drop in September, according to data available on the Sebi website. The fund, managed by Veliyath-owned Equity Intelligence, had gained 6.33 per cent and 3.70 per cent in August and July, respectively.

In a recent interaction with ETNow, Porinju said investors should not forget that such fearful situations, corrections and crashes have happened many times in the past and every time the market has bounced back. So, it is not end of the world.
“This is a typical market panic. We have gone through many such corrections and cycles. Every cycle is a learning opportunity for investors. Such fearful corrections have happen in the past and the market has always bounced back from these levels,” he said.

The Basant Maheshwari Wealth Adviser’s PMS slipped 21.50 per cent in September. The fund, managed by Basant Maheshwari, an investor of repute, delivered 2.4 per cent and 15.90 per cent returns in August and July, respectively.
A PMS managed by Motial Oswal AMC slipped 12 per cent last month. However, due to some glitch on the regulator’s website, it was showing a positive return of 12 per cent, the company spokesperson confirmed to ETMarkets.com.

Data available with the market regulator showed other PMS funds run by Enam AMC, ASK Investment Managers, Kotak Mahindra AMC, ICICI Prudential AMC, Old Bridge Capital Management, Sundaram Asset Management Company, Reliance Wealth Management, 2Point2 Capital Advisors and ValueQuest Investment Advisors all slipped between 10 per cent and 17 per cent in September.

The selloff in stocks has intensified this month and dragging the 30-share index some 4 per cent so far. Analysts have attributed this correction to sustained withdrawals by foreign portfolio investors (FPIs) amid a falling rupee, rising crude oil prices and subdued global cues. The BSE Sensex plunged over 1,000 points in early trade on Thursday, while NSE’s Nifty breached the important 10,200 mark.

Dheeraj Singh, Head of Investments of Taurus Asset Management said while most of the earlier falls was attributed to domestic factors – be it the IL&FS effect and fears of contagion thereon, or the ever increasing fuel prices due to the combined effect of weakening rupee and rising global crude prices – the reasons for Thursday’s fall were clearly global with the US markets falling sharply after President Trump’s acerbic comments against the Fed and the consequent sharp fall in all major Asian markets.

Two reports published on the eve of the annual IMF-World Bank meeting in Bali, Indonesia, have also contributed to market jitters.
An IMF report projected the world economy to grow at a slower pace than what was expected earlier (3.7 per cent vs the earlier projection of 3.9 per cent) – thanks to global trade war and the forthcoming sanctions on Iran, while a World Bank report highlighted the risks of extremely high debt levels (public and private) in the major economies of the world.





Read more at:
//economictimes.indiatimes.com/articleshow/66160533.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
 

TraderRavi

Gayi Bhains Pani Mein
15% more correction in Nifty! D-Street veteran, brokerages see more pain ahead

If you thought the painful correction seen in domestic equities over the past few days has wiped off all the froth, you may be in for surprise.

Market veteran Saurabh Mukherjea, often cited as among the few analysts who had predicted the 2008 global financial crisis, says the India market has 10-15 per cent more downside before it reaches fair value.

The benchmark indices are already down 13-14 per cent in the ongoing correction since late August, which has wiped out all the gains recorded earlier this year.

On Thursday, Sensex tanked as much as 1,000 points in line with a global equity selloff, but paired the losses by a half later in the day.

Talking to ET Now, a sister concern of ETMarkets.com, Mukherjea said the market should correction at least 10 per cent from its current level. “I have been saying this for last one year that the market is significantly overvalued,” he said.

Mukherjea is not alone. A host of brokerages have also turned cautious on domestic equities.

Standard Chartered in an equity note on Wednesday kept its tone cautious, citing stretched valuations. In a separate note, Credit Suisse Wealth Management says stocks should grind lower in the coming months, as India Inc is expected to witness further earnings downgrades, after September quarter numbers, led mainly by financials and consumer discretionary plays, including auto stocks.

Till the end of Wednesday, BSE Sensex had fallen 5,200 points to 33,723 from a record high of 38,989 it had hit on August 29.

Mukherjea, founder of Marcellus Investment Manager, said he expects a derating of many financial stocks, which account for over one-third of weightage on the indices.

“I still think Nifty and Sensex are overvalued. I have been saying repeatedly that the biggest pocket of overvaluation in the Indian market was in financial services; their valuations made no sense at all a month ago. A further derating will come in the wholesale-funded lenders, in particular. There is still value in IT. I see lots of value in pharma and export-oriented auto stocks, which I think are still worth buying,” Mukherjea said.

Brokerage Centrum in an October strategy note said preservation of capital should be investors’ top priority for the remainder of 2018.

The Nifty currently trades at 20 times EPS of FY19E, off from its recent high, but still rich. “We remain hopeful than fearful, but admittedly the number/intensity of ‘fear’ factors has been gruelling,” Centrum said.




Read more at:
//economictimes.indiatimes.com/articleshow/66161471.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
 

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