Do it yourself

The benchmark Nifty50 has faced acute selling pressure around the 26000 level in the past two months. It has made several unsuccessful attempts to sustainably topple over this barrier. Nifty Midcap100 (benchmark for midcap stocks) has also shown a similar trend in the 60000-60500 range. Nifty Smallcap 100 (benchmark for smallcap stocks) has declined for the past two months. It is pertinent to note that in Indian context, a large cap company is defined as a company that falls within the top 100 companies in the country in terms of total market capitalization. At present, the companies with a total market capitalization in excess of appx Rs1060bn (~USD1.2bn) would qualify to be large cap companies. The companies with a market capitalization rank from 101 to 250 are termed as midcap companies. Presently, the companies with a total market capitalization between 343bn and Rs1060bn (US$375mn to US$1.2bn) are classified as midcap companies. All other companies are classified as small cap co...

Presently, the collective wisdom in Indian stock market appears divided at least on two issues over the consideration of appropriate equity investment strategy. The first point of division is over the sustainability of the stock markets at the present levels. A smaller but influential segment, which primarily includes economists, development bankers and strategists, believes that the macro conditions in Indian economy may not improve materially from the current level at least till FY21. The political and fiscal constraints shall limit the government's ability to stimulate the economy through fiscal incentives and material increase in infrastructure investments. The private investment may not see any significant improvement in the absence of large scale new employment opportunities; occurrence of which looks improbable unless radical reforms in labor and land laws are executed earnestly and immediately. Regardless of the initiation of the resolution process for many...