Latest news with #Trivesh
India Today
18 hours ago
- Business
- India Today
Smallcap stocks are back in action again. Should you ride the wave?
After a shaky start earlier this year, smallcap stocks are back in the spotlight, racing ahead like they've got a point to prove. The smallcap space has come roaring back, outpacing the Nifty by a wide margin and pulling investor attention away from large, slow-moving the market's low in February 2025, the Nifty 50 index has risen by 12%. But the real jump has been in the mid and smallcap space. The midcap index has gone up by 20%, and the smallcap index has climbed 22% during the same just the last month, smallcaps have continued to lead the market. According to Axis Securities, 'The Smallcap index went up by 9.6% and the Midcap index by 6.1%, while the benchmark index, Nifty50, inched up marginally by 1.7%.'Axis Securities listed five key reasons behind this rally: earnings for the fourth quarter of FY25 were in line with what was expected, trade relations between countries improved, there was some relief on the geopolitical front, macroeconomic indicators for FY26 looked strong, and investors showed more interest in taking LEAD THE RALLYThe BSE Smallcap Index has jumped 21% in the past three months. In comparison, the Nifty 50 has gained 12% during the same time. Some smallcap stocks have given very high example, NACL Industries has shot up by 192%, and Garden Reach Shipbuilders (GRSE) has gone up 147%. Other stocks such as Suven Life, Centum Electronics, Cosmo First, Bharat Dynamics, Zen Tech, and Mangalore Chemicals have either doubled or come VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said, 'All the action is in the mid and smallcap space in response to the results.' However, he warned that 'investors should not chase mid and smallcaps without any concern for valuations.' He added that 'quality mid and smallcaps have the potential to outperform.'WHAT INVESTORS NEED TO KNOWSmallcap stocks are known for their ability to rise quickly, but they can also fall just as fast. After a strong rally like this, experts are advising caution. While the recent gains are impressive, many believe investors should not just follow the trend blindly.'Small-cap stocks are back in focus, and they have outperformed the broader market in recent weeks,' said Trivesh, COO at pointed out that while the Nifty fell 0.41% over the last week, the smallcap index gained 1.36%. From its April low, the smallcap index has recovered nearly 26%.At the same time, Trivesh said investors should not get carried away. 'Not all small caps are created equal,' he said. 'The recent correction in momentum-heavy portfolios has been a clear signal, chasing hype without looking at earnings strength can hurt.'He believes India's growth story remains strong, and smallcap stocks will be a part of that. But he also highlighted the need for a careful approach.'It is less about riding the wave and more about finding companies that can actually deliver on the ground,' he said. 'Focus on quality, sustainability of profits, and strong fundamentals. That is what will separate the winners from the rest in this space going forward.'advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Mint
6 days ago
- Business
- Mint
BSE Midcap, Smallcap indices surge up to 10% this month, outshining Nifty 50, Sensex; is a stock market bubble brewing?
The Indian stock market looks set to extend its winning streak to the third consecutive session in May, helped by easing tariff worries, improving macroeconomic conditions, largely stable Q4 results, and foreign capital inflow. While the market is witnessing buying across segments, barring intermittent profit booking, a notable fact is the significant outperformance of broader markets. In May till the 28th, the benchmark Sensex has gained over 1 per cent and the Nifty 50 has climbed almost 2 per cent. However, the broader markets have outperformed significantly, with an over 5 per cent gain in the BSE Midcap index and a 10 per cent gain in the BSE Smallcap index. Some small-cap stocks such as Suven Life Sciences and Cosmo First have surged more than 80 per cent in the last one month. The sharp gains in the mid- and small-cap segments this month could be attributed to better-than-estimated Q4 earnings and moderation in premium valuation. Easing global risks, the prospects of healthy economic growth, an above-normal monsoon, and the RBI's rate cuts are also among key factors that seem to have boosted the broader market sentiment. Moreover, experts suggest that retail investors, in the pursuit of quick gains, could be chasing mid and small-caps after their underperformance over the last few months. Year-to-date, the Sensex and the Nifty 50 have gained 4 per cent and 5 per cent, respectively, while the BSE Midcap index has declined 3 per cent and the BSE Smallcap index has suffered a loss of 5.5 per cent. "The outperformance in mid- and small-caps this May is a mix of factors, including geopolitical tensions like the India-Pak war scare that have eased, US tariff rhetoric that has softened, the monsoon forecast and the above-expectations Q4 earnings. All of this has improved sentiment toward India's domestic story," Trivesh, COO, Tradejini, observed. Trivesh underscored that the pharma and FMCG have seen renewed interest due to rising income levels and steady rural demand, while niche mid-cap names in capital goods, chemicals, and auto ancillaries continue to offer structural opportunities. Shrikant Chouhan, the head of equity research at Kotak Securities, underscored that the Nifty 50 is trading at 19 times the one-year forward earnings for FY27, which is expensive. However, the market appears to be relatively relaxed despite uncertainties in global macroeconomic conditions. "In such situations, it is common for activity to shift toward mid and small-cap stocks. Our strategy should focus on a bottom-up approach," said Chouhan. According to Pawan Bharaddia, the co-founder of Equitree Capital, the crux of this rebound in small and mid-caps has been on two counts primarily – stabilisation of geopolitical issues including India-Pakistan, Tariffs uncertainty being postponed and earnings growth coming about in small and mid-caps. "Basis Q4 announced till date, large caps have reported about 9 per cent year-on-year (YoY) growth, whereas mid-caps have delivered about 12 per cent growth. Small caps have had a mixed bag. However, that remains always a ground-up investment genre, and if we reflect on our own portfolio companies, we have seen around 18 per cent YoY growth for the quarter. This growth is leading the outperformance," said Bharaddia. Experts point out the valuation and suggest maintaining caution in the mid and small-cap segments. "Investors need to be cautious, valuations are not cheap. Instead of chasing rallies, it's smarter to use corrections to build positions selectively. In this space, patience and quality matter more than timing," said Trivesh. According to Bharaddia, investors should approach small-caps in a stock-specific manner. He believes generalising the segment based on headline valuations or growth often leads to distorted reference points and distracts from growing companies. Another aspect that Bharaddia highlighted is that one should always remember to stagger investments rather than invest the entire funds in one go while investing in small caps. "Inherently, this genre is volatile, and one would be better off to leverage this volatility by staggered investing rather than getting played out by it," said Bharaddia. Bharaddia sees a lot of opportunities across engineering, manufacturing, infrastructure, ancillaries and select consumer plays. "We are largely playing out four multi-year structural themes – increasing export opportunities for Indian manufacturing, import substitution, continuous infra spend and the larger Indian consumption story. We believe these are decadal themes and one needs to just remain invested and allow the power of compounding to play out for wealth creation in these opportunities," said Bharaddia. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
India Today
7 days ago
- Business
- India Today
Finfluencer frenzy: Why you shouldn't chase viral stock tips
It often starts with a reel. You're unwinding after a long day, scrolling through Instagram, when a sharply edited video stops your thumb. A confident voice promises a stock that will "double in 30 days." The chart looks convincing. The profits look real. The urgency feels minutes, you're watching another. Then another. Before you know it, you're downloading an app, opening a demat account, and investing in a company you hadn't heard of until five minutes how thousands of retail investors are getting swept up in a surge of financial advice on social media, driven not by seasoned economists or licensed advisors but by a new breed of digital celebrities known as 'finfluencers'.FINFLUENCERS RIDE DIGITAL BOOM In India's booming digital economy, these social media personalities have become the new-age financial guides for millions of retail investors. A recent CFA Institute report found that 82% of retail investors act on finfluencer advice, and 72% even reported making the surface, it sounds like a success story. But scratch a little deeper, and the sheen wears off. Only 2% of these finfluencers are Sebi-registered, and the rest? Operating in a regulatory grey zone where accountability is optional and consequences are rare.'The biggest risk is acting on flashy advice without context,' warns Trivesh D, COO of brokerage firm Tradejini. 'We know many finfluencers aren't qualified, but they sound convincing. If you're blindly following someone with no skin in the game, you could end up in poor trades, or worse, manipulated stocks.'advertisementAnd this isn't just a matter of a few bad calls. The psychological mechanics behind these digital interactions are built to influence, not inform. FOMO—fear of missing out—is baked into the more dramatic the claim, the more views it garners. The algorithms that power your feed reward virality, not veracity.'Emotion rarely leads to sound investing,' Trivesh adds. 'When people online seem to be making money, it creates pressure to jump in. But that's not a strategy, it's just emotion dressed up as one.'VLA Ambala, a Sebi-registered research analyst and co-founder of Stock Market Today, has seen firsthand how this emotional bait can sink unsuspecting investors.'Most of these influencers are neither qualified nor willing to come under Sebi's regulatory umbrella. Many of them are simply copy-pasting trending content to attract followers. They promote risky or unsuitable financial products for personal gain,' she STOCK BUZZ, RESOURCEFUL IPO HYPEConsider the now infamous case of the Resourceful Automobile IPO. With just two Yamaha showrooms and eight employees, the company's IPO was still subscribed 400 times, thanks largely to finfluencer hype. 'There was no substance, only buzz,' Ambala recalls. 'And that buzz was manufactured.'Then there's the case of Gensol Engineering Ltd, where finfluencers widely promoted the stock and its charismatic promoters, Anmol and Puneet Singh Jaggi. The company's meteoric rise drew in thousands of retail investors, but when Sebi flagged serious corporate governance issues and fund diversion, the stock tanked and investors saw losses of up to 95%.advertisementCrypto investors, too, have been stung. Popular YouTubers endorsed platforms like Vauld, a Singapore-based crypto firm that suspended deposits and withdrawals in 2022. Indian investors were left stranded, unable to retrieve their consequences are real and often costly. 'Following unverified advice from finfluencers can damage an investor's long-term strategy,' Ambala cautions. 'Instead of growing wealth with clear goals, people end up chasing random tips. It's inconsistent and unsustainable.'CREDIBILITY CRISISPerhaps the most worrying part is the illusion of credibility. 'Many finfluencers look like professionals but are actually experts in sales and marketing,' she says. 'They appear free, but they earn massive commissions through brokerage referrals and subscriptions. The average viewer doesn't see the conflict of interest.'Despite repeated warnings from Sebi, a vast number of these content creators continue to offer direct stock recommendations, often without disclosing affiliations or incentives.'If someone is promising guaranteed returns, pushing penny stocks aggressively, or avoiding questions about their holdings, that's a red flag,' says Trivesh. 'Genuine advice rarely comes wrapped in hype.'advertisementBoth experts stress that education is the first line of defence. Building financial literacy and cultivating scepticism can go a long way in protecting retail investors.'Don't just take someone's word for it,' Trivesh says. 'Cross-check with reliable sources. Look at company filings. Consult licensed professionals.''Popular doesn't mean accurate,' Ambala adds. 'Social media algorithms push what gets the most clicks—not what's true. The onus is on investors to verify before they act.'So, what should new investors do? Slow down. Read. Ask questions. Find out if the person dishing out stock tips is registered with Sebi or is at least credible. Learn the basics before diving into complex strategies. And most importantly, if it sounds too good to be true on social media, it's usually a warning sign, not a winning bet.
India Today
30-04-2025
- Business
- India Today
Can gold retain its glitter as Dalal Street gets back its glow?
Gold prices, which recently touched an all-time high of Rs 1 lakh, have started to come down as global conditions improve and stock markets recover. This shift has reduced the demand for gold as a safe investment, with investors now turning their attention back to a week ago, gold was trading at record levels due to global uncertainty. Concerns over trade tensions, US tariffs, and geopolitical issues had pushed investors towards gold, a common choice during uncertain times. But now, things are the same time, stock markets have shown strong performance. The Sensex has crossed the 80,000 mark, and the Nifty has posted its best level in 2025 so far. As a result, investor confidence in equities has returned, lowering the appeal of TO RETAIN ITS GLITTER?Trivesh, Chief Operating Officer of Tradejini, said that gold and stocks serve different purposes in an investment plan.'Gold has gone up by over 30% since Akshaya Tritiya 2024 and over 200% in the last ten years. The rise was mainly due to global market troubles, trade restrictions, and rising oil prices. In India, gold is not just an investment—it has cultural value and is seen as a sign of prosperity and security during festivals and family events.'He added that while gold had a strong rally, some correction is natural as global tensions ease. Still, gold remains a popular choice for protecting capital and reducing risk during uncertain the other hand, equities provide growth. 'The Nifty 50 has bounced back by 12% from its April low. But now, market expectations are high. If company earnings do not meet these expectations, there could be a correction,' said advised a balanced investment strategy. 'Gold protects you from market ups and downs. Equities help your money grow over time. Choosing the right mix depends on how much risk you can take and what your financial goals are.'advertisementWHY ARE GOLD PRICES FALLING?The recent fall in gold prices is mainly because of better global trade Treasury Secretary Scott Bessent recently said that several major trading partners, including India, had come forward with strong proposals to avoid US tariffs. He added that a trade deal with India might be signed soon. China has also decided to remove tariffs on some US goods, which is seen as a move to reduce tensions. At the same time, the US has said it will ease the impact of auto tariffs. These steps are expected to improve trade relations between large Trivedi, Vice President and Research Analyst for Commodities and Currency at LKP Securities, said, 'The fall in gold demand came as the US began tariff talks with many countries. Hopes for a China-US trade deal and possible peace between Russia and Ukraine have also reduced the need for gold as a safe option.'advertisementHe explained that when global tensions fall, investors tend to move their money away from safe options like gold and into other investments that might offer better returns. This shift has pulled down gold prices both globally and in India. At one point, gold had climbed to $3,500.05 per ounce due to fears of a global slowdown and market OUTLOOK FOR GOLDRahul Kalantri, Vice President of Commodities at Mehta Equities, said gold prices dipped early Monday due to low demand in China. However, they recovered slightly later in the day due to global risk worries and some profit-taking in the US said that recent border tensions between India and Pakistan, and attacks in Iran, briefly pushed gold prices up again. But the rise didn't last shared current levels for gold and silver. He said gold has support at $3,310–$3,288 and resistance at $3,360–$3,378. In India, this means gold has support at Rs 95,450–Rs 95,080 and resistance at Rs 96,750–Rs 97,290. Silver is also facing pressure, with support at Rs 95,680–Rs 94,850 and resistance at Rs 97,150–Rs 97, Renisha Chainani, Head of Research at Augmont, said that gold prices could rise again if a new global issue appears. She said that if gold moves above $3,380 (about Rs 96,400), it could go up to $3,435 (around Rs 97,400), and possibly reach $3,500 again (about Rs 99,400).advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
India Today
30-04-2025
- Business
- India Today
New wave of IPOs is coming. Is Dalal Street ready?
After a quiet start to the year, the initial public offering (IPO) market in India appears to be waking up again. In the first four months of 2025, only nine companies managed to list on the mainboard, with Ather Energy becoming the 10th. This is much lower than the same period in 2024, when 25 companies had already IPO market, which saw strong activity last year, started 2025 on a slower note. Raghvendra Nath, Managing Director of Ladderup Wealth, said that 2024 was a record further added that IPOs had been oversubscribed nearly 27 times on average, drawing total bids worth Rs 46.7 trillion against an offer size of Rs 1.8 trillion. The SME segment also saw massive interest, with 236 IPOs and an average oversubscription of 165 OF A COMEBACKIPOs seem to be making a comeback. Ather Energy's IPO is currently open for bidding. Several other companies such as Prestige Hospitality Ventures, Canara HSBC Life Insurance Company, and Urban Company have filed their draft papers with Sebi. Reports also suggest that InCred is preparing for an addition to these, some big names are lining up to go public in 2025. Reliance Jio Infocomm is expected to launch a public issue worth Rs 40,000 crore, which could become the biggest IPO in Indian history if it goes Capital, PhonePe, and Zepto are also said to be in the pipeline. Financial firms like HDB Financial Services and Hero FinCorp are planning to raise Rs 12,500 crore and Rs 3,668 crore, respectively. LG Electronics India, which already has Sebi's nod, is preparing for a Rs 15,000 crore offer for THE SUDDEN ACTIVITY?Trivesh, Chief Operating Officer at Tradejini, said the IPO buzz is back on Dalal Street after a short pause. Many companies are now moving ahead with their IPO pointed out that the rise in filings and new listings, including both mainboard and SME IPOs, shows that market sentiment is improving and investor interest is growing again.'In 2024, India raised a record-breaking USD 20.5 billion through IPOs, making it the second busiest IPO market in the world,' Trivesh explained that companies are taking advantage of strong liquidity, steady foreign inflows, and positive market momentum. The stable economic outlook and investor confidence are helping firms raise money at good valuations. Many of these companies had delayed their IPO plans earlier, waiting for better conditions. Now that the market has improved, they see this as the right time to go also added that India's fast economic growth, strong investment in infrastructure, a boost in manufacturing, and steady consumer spending have made the country attractive for raising capital. As a result, more companies are rushing to tap into this positive INVESTORS JUMP IN?While the IPO market is looking busy again, experts suggest investors should not jump in without doing their Bathini, Director of Equity Strategy at WealthMills Securities, said, 'Recent market volatility and investor caution slowed down IPO activity in the last two months. But going forward, the market will be selective. Investors will look closely at valuations and management quality.'Bathini pointed out that although there was strong listing interest in the past, many IPOs have not performed well in the long run.'In the past three years, around 700 IPOs were launched. Most of them have underperformed after listing gains. So investors are now more careful in choosing IPOs,' he shared the same view, mentioning that in 2025 so far, there have been 10 mainboard IPOs. Out of these, six gave profits on listing, three did not, and one is yet to list. In the SME space, 61 IPOs have been launched this year, with nearly half giving gains on the first day. This shows that while there is room for profits, there are also risks.'Investors should not be carried away by hype. It is important to study the company's business model, how it earns money, what price it is asking, and what future growth it has,' Trivesh The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
