Latest news with #Nifty200Momentum30Index
Economic Times
2 days ago
- Business
- Economic Times
Pramod Amthe on 3 stock ideas for June and 2 stocks where they booked profit
Live Events You Might Also Like: Nilesh Shetty stays cautious; 3 sectors see largest allocations in value portfolio You Might Also Like: Why is it the perfect time to invest in Nifty 200 Momentum 30 Index? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel , Head of Institutional Equity Research,, says they have booked profit in Adani Port and moved out of Cipla due to margin challenges, while introducing Camlin Life Science, anticipating stabilization and benefits from anti-dumping duties. Thyrocare with new franchise expansion and Birla Corp's undervaluation drove outperformance in May. InCred also upgraded two stocks around February, March at the bottom of the market, Bajaj and you look at earnings season for Nifty 50, the growth is still tepid on the EPS basis at around 5%. This was broadly in line with the expectations and that is a comforting factor. But for all the 4,000 odd listed companies, the growth is around 9%. So, the mid and smallcaps are definitely giving a better profit growth even in the March quarter, which is similar to the December quarter growth of 9%.Having said that, some of the macro factors have played out well for India in the sense of the last fortnight prediction for early onset of monsoon, or the oil prices coming down. So, macros are getting much quickly factored into the marketplace and hence the inclination more towards our bull case index targets are playing out, better than the expected in the short conviction is a monthly bottoms-up approach which we look at for our 200 stock coverage universe. What we have done for June, the ones which you listed, have been there for the last couple of months. What we have done in case of our high conviction ideas is we have booked profit in Adani Port which has been one of the good performers in the last couple of months as it is near our target price and risk-reward at this juncture we feel is not too much in have moved out of Cipla which has been high conviction for the last couple of months because we feel there can be near-term margin challenges because of the product mix related issues. At the same time, we have introduced a smallcap name Camlin Life Science which is going to see the stabilisation of the vanillin plant along with the benefit of rights issue and the imposition of anti-dumping duties is going to give a substantial upside from the current are the three stock ideas for this month along with the remaining 17 to 18 of which you have taken a couple of stocks that have been big outperformers for us in May. As you rightly called out, one is Thyrocare on a strong visibility of new franchise expansion leading to the momentum in sales and the loss making division turning around on the high-end pathological test is the key driver for Corp is more on the midcap undervaluation per tonne basis is what plays out along with some momentum in the cement as seen in the fourth quarter results. Those are the things which have played out for us in these two upgraded two stocks around February, March at the bottom of the market, Bajaj and SAMIL. Bajaj has seen a decent amount of correction from the top levels. We feel at this juncture the worst of KTM acquisition news is factored in in the current price levels and the valuation. Having said that, the firm has already clearly transitioned itself both into e-three-wheeler portfolio and also in case of e-two-wheelers, they are neck to neck in terms of the leadership in the electric biggest comfort is the neutrality of the corporate margins in spite of handling such a big transition for the company. Even though the investors are a little bit concerned about the market share loss in motorcycles, we feel that can be addressed with the new product launches and hence at these current valuation with the expected addressable market expanding for them with a low speed scooters and the e-rickshaw, we are definitely looking at mid-teen to high-teen earnings growth for them in the next two channel checks on it indicate that there are still headwinds. The recent restriction in terms of travel to India is going to be a little headwind to close the deals, especially large deals which have been the drivers of topline for it excluding, so we downgraded it somewhere in early part of the calendar year to neutral. We continue to hold the same as the full year guidance has not been great, encouraging, and the short-term headwinds on travel restrictions do play out in the short than the valuation factor, the topline outlook is still dim. So, we stay put with that rating. In terms of FMCG, we have been much more selective in the names which we want to play out in the FMCG sector. I would say the broader play in terms of interest rate sensitive are going to be the way we would like to play out is more on autos where we are neutral than on the consumption or on the FMCG basket where we would like to play more on the high-end side which is Ethos and the derivative of the consumption is more on TCPL Packaging which are on the high conviction idea stocks for have dropped a couple of names in the recent past on the consumption side. We dropped out of Pidilite and Marico in the last three months from the high conviction list and have no immediate plans to add them back as the recovery seems to be more back-ended than the immediate benefit.
Time of India
5 days ago
- Business
- Time of India
Bank Nifty crosses 56,000 to hit record high as RBI rate decision loomsBank Nifty crosses 56,000 to hit record high as RBI rate decision loomsBank Nifty crosses 56,000 to hit record high as RBI rate decision looms
India's Nifty Bank index crossed the 56,000 mark for the first time on Tuesday, buoyed by gains in lenders such as HDFC Bank and State Bank of India , as investors positioned themselves ahead of an expected interest rate cut by the Reserve Bank of India (RBI) later this week. However, the index failed to hold its early gains and slipped into the red by mid-morning. The banking index surged to a lifetime high of 56,161.40 at the open, but was trading 0.1% lower by 9:50 a.m., reflecting profit-taking and weakness in major constituents. Early optimism was fueled by strong buying in AU Small Finance Bank , Federal Bank , Punjab National Bank , HDFC Bank, and IndusInd Bank , which rose between 0.4% and 1.2%. However, larger lenders including ICICI Bank , Axis Bank , and Kotak Mahindra Bank weighed on the index, falling up to 0.9%. Despite the intraday pullback, the Nifty Bank index remains one of the top performers in 2025, having gained 10% so far this year. It has delivered a 9.7% return over the past 12 months and is up 15% from its 52-week low, underscoring growing investor confidence in the sector's outlook. RBI rate cut in focus Live Events Gains in rate-sensitive banking stocks have been supported by expectations that the RBI will reduce the benchmark lending rate by 25 basis points at its upcoming Monetary Policy Committee (MPC) meeting on June 6. Under Governor Sanjay Malhotra, the RBI has already cut the repo rate by 50 basis points over its last two meetings, bringing it down from 6.5% to 6%. Market economists widely anticipate another rate cut this week, continuing the current easing cycle. 'Since the MPC is expected to cut the policy rate by 25 bps in the meeting on the 8th, rate-sensitives are likely to be favoured in the coming days,' said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services , citing declining inflation and supportive macroeconomic conditions as enablers of further policy action. Adding to the optimism, India posted a robust GDP growth of 7.4% in the March quarter of FY25, reinforcing confidence in the country's economic momentum. 'This is the strongest quarterly growth in FY25, accelerating from a 6.2% expansion in Q3. India's economy grew 6.5% in FY25, in line with estimates, reaffirming its status as the world's fastest-growing major economy,' said Dr. Manoranjan Sharma, Chief Economist at Infomerics Valuations and Ratings. With rate-sensitive stocks in focus ahead of the RBI decision, traders and investors are closely watching for signals that could either extend the rally or trigger a reversal, depending on the central bank's tone and forward guidance. Also read | Why is it the perfect time to invest in Nifty 200 Momentum 30 Index? ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) ETMarkets WhatsApp channel )
Time of India
5 days ago
- Business
- Time of India
Why is it the perfect time to invest in Nifty 200 Momentum 30 Index?
Momentum investing is an aggressive investment style and carries higher risk. Mutual funds manage ₹11,125 crore worth of assets in the Nifty 200 Momentum 30 Index strategy as of April 30, 2025. The Nifty 200 Momentum 30 Index has recently underperformed compared to the Nifty 50, potentially offering aggressive investors an opportunity for gradual investment. Experts suggest that this underperformance is temporary, and a systematic investment approach over the next 3-6 months could be beneficial as the market regains its rhythm. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: For aggressive investors , the recent underperformance of an index fund category that tracks the 30 fastest-rising stocks from the Nifty 200 universe may open up a window to invest gradually at lower the past year, the Nifty 200 Momentum 30 Index lost 9.75% against the 10.5% gains in the Nifty. In the last six months, the index lost 10.51%, while the Nifty 50 advanced 3.29%."Momentum factor has struggled in the last two quarters as markets came off after hitting a peak in September 2024," says Prateek Sinha, director, Deep MFD. He said the momentum strategy underperformed in 2009 and 2023 and it lasted for around 10-11 months."Once the market finds its rhythm, momentum strategies will outperform again," said Sinha."It would make sense to start systematically investing in momentum strategy over a 3-6 month period." Momentum investing is an aggressive investment style and carries higher risk. Mutual funds manage ₹11,125 crore worth of assets in the Nifty 200 Momentum 30 Index strategy as of April 30, Nifty 200 Momentum 30 Index, chooses stocks based on their momentum score which is determined based on its six- and 12-month price returns, after adjusting for its daily price volatility. Stock weights are based on a combination of the stock's normalised momentum score and its free-float market capitalisation with individual stock exposure capped at 5%."The recent underperformance of the momentum strategy provides a good entry point to long term investors," says Sharwan Goyal, head - passive, arbitrage, Quant Strategies, UTI Mutual Fund.'Based on historical trends, periods of underperformance are typically followed by significant outperformance, contributing to its consistent top-tier ranking.'In a bull market, momentum could outperform the broader markets and give far higher returns. 'Whenever the broad markets gain 20%, momentum typically returns much more at 1.5-2 times' says Pratik Oswal, head — passives, Motilal Oswal Mutual has been one of the best performing strategies in India from a longer-term perspective. Amongst the four factors such as value, quality, momentum and low volatility, momentum has been among the top three performers for 16 out of 20 a 3-year period, the Nifty 200 Momentum 30 index gained 20.23% every year against the Nifty's 15.49%. Since April 2005 (since inception), on a 3-year rolling basis, the index has outperformed Nifty 200 Index 85% of times. Oswal expects a broad market recovery in the next three years and expects the momentum strategy to outperform in this period
Mint
06-05-2025
- Business
- Mint
Should you diversify your portfolio by adding mutual funds focused on quality strategy?
Several mutual funds have filed with the Securities and Exchange Board of India for quality strategy funds. Quality strategy involves investing in companies that have strong fundamentals and robust balance sheets. It prioritises stocks with high profitability, high return on equity and low levels of debt. Should those looking at diversifying their portfolios with a different investment style consider the quality theme now? With the markets going through a phase of uncertainty, past performance suggests that the quality theme tends to do well during such times. In 2013, when the US Federal Reserve started to unwind the huge liquid ity surplus it had maintained to stimulate the economy, the benchmark Nifty 50 Index gained 6%, while the Nifty 200 Quality 30 Index advanced 17%. It outperformed other strategies — with the Nifty 200 Value 30 Index losing 15%, the Nifty 200 Alpha 30 Index adding 14% and the Nifty 200 Momentum 30 Index rising 10%. Value strategy focuses on stocks trading at cheaper valuations than their earnings and intrinsic value. The alpha strategy calls for investing in stocks that have widely outperformed market benchmarks in recent periods, and the momentum strategy looks for stocks with recent price up-moves. In 2018, when the markets faced pressure from the impact of the IL&FS crisis, the Nifty 50 Index was up 4%, while most other strategies yielded negative returns. However, the Nifty 200 Quality 30 Index delivered 7% returns. "In today's environment of economic uncertainty and moderating growth, businesses with sound financials and sustainable profitability stand out," said S Naren, executive director and chief investment officer of ICICI Mutual Fund, which recently launched the ICICI Prudential Quality Fund. 'A quality strategy-oriented fund aims to tap into this potential by selecting high quality companies available at reasonable valuations, thereby aiming to build a resilient portfolio designed to perform across market cycles. With attractive valuations in the quality segment, we believe this is an opportune time for investors to adopt a quality-focused strategy." While most funds in this segment are passively managed – tracking the performance of the quality index – ICICI MF's quality fund is an actively managed fund. Experts expect quality as a theme to do well going ahead, as it has underperformed other strategies from FY21 to FY24. "The volatility induced in the market over the last few months (GDP slowdown, tariffonomics, Indo-Pak situation) has poked the bubble of a pure liquidity and deep value driven rally in stocks and sectors," said Sunil Subramaniam, a market expert and former mutual fund CEO. 'So now companies with sound financials, deep moats and entry barriers, high corporate governance and relative stability and predictability of earnings are the ones which will withstand the test of facing up to the uncertain local and global environment over the next few months. In effect, it's the time for 'quality' to dominate allocations by both foreign institutional investors and domestic institutional investors." Strategy-based investing can be considered more of a tactical allocation than part of one's long-term core portfolio. Investors can complement the quality strategy with other strategies. 'By itself, quality may not always work but combining it with momentum can give a better investor experience," pointed out Kavitha Menon, founder of Probitus Wealth. Quality can also be combined with value because when value does well, quality underperforms and vice-versa. However, investors who are at the beginning of their investment journey should stick to regular diversified equity funds to build up their core investment portfolio before looking at tactical investment calls.
