PrimeInvestor - Articles and Reports

Should you go for the 4-5 year special deposit schemes from NBFCs now?

Bonds & Deposits

Should you go for the 4-5-year special deposit schemes from NBFCs now?

With popular NBFCs such as Sundaram Finance, HDFC and Bajaj Finance revising their deposit rates in the past year, FD investors can finally look forward to better returns, after a long drought. Rising demand for loans in an improving economy, is forcing NBFCs to compete actively for deposits once again, prompting even top-rated ones to roll out deposit schemes for longer tenures of 4 to 5 years with ‘special’ rates. Sundaram Home Finance is offering 7.65% on its 4-year FD and HDFC has a special offer of 7.6% running its 45-month Sapphire Deposit scheme.
But are these rates special enough for you to lock in your money for longer tenures of 4 or 5 years?

Aarati Krishnan January 29, 2023 6 Comments

Stocks

Prime Stocks update: How this EV player is placed now

We had, in mid-2021, initiated a buy call on a stock that was reinventing itself from a supplier of diesel engines into an EV player. It was an early call we’d made on the EV boom, which appears well-timed as electric 2-wheeler sales jumped from 16,000 units in 2018 to 150,000 units in 2021 to a whopping 615,000 units in 2022!
With the EV 2-wheeler market now clearly segmenting itself, there is more clarity on how competition and market share is shaping up. The EV 2-wheeler industry is also going through regulatory tightening.

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N V Chandrachoodamani January 26, 2023 No Comments

Fundamental analysis or technical analysis: which is better

General

Fundamental analysis or technical analysis: which is better?

There are more theories on what works in stock investing than there are listed stocks. Each one seems to be successful at some point in time. However, there is still no single universally applicable formula. I am still in search of that magic formula. If any of you do find one, please post it in the comments section.

But if there can be said to be two warring camps on the right approach to stock investing, these are usually fundamental analysis and technical analysis. Both have loyal camps of followers who swear that their method works best.

R Balakrishnan January 24, 2023 9 Comments

Stocks

Prime Stocks: An ER and R&D services company focusing on high-growth opportunities

This leader in engineering and R&D services is differentiated from other large IT players and is focused on high growth opportunities.

N V Chandrachoodamani January 20, 2023 No Comments

Stocks

Prime Stocks: An update on a recommendation

In one of our stock recommendations last year, we analysed a company that was moving from ‘tonnage to technology’. We spoke briefly about the company transforming itself from a manufacturer of forged components to a supplier of products, systems and assemblies to defence and electric vehicles. The stock delivered 27% since our call (index 8.5%) and we retain a buy. In this report we detail further on the above opportunities based on the information that the company shared with analysts last month.

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N V Chandrachoodamani January 19, 2023 No Comments

Mutual funds & ETFs

5 reasons to avoid PSU ETFs

The list of top performing equity funds for the past year features a couple of unusual entries. With a return of 18-21 per cent, CPSE ETF (managed by Nippon India Mutual Fund for the government of India) and the Bharat 22 ETF (managed by ICICI Prudential Mutual Fund) are top rankers among equity funds.
This has many investors asking if they should add these passive funds to their portfolio. The portfolios of CPSE and Bharat 22 ETFs are made up of the PSU oil, energy and financial giants which are the flavour of the season. These ETFs’ costs are ultra-low because they are used as divestment vehicles. Both ETFs would also seem to be ‘value buys’ if you go by their ultra-cheap valuations. The CPSE ETF trades at a portfolio PE of 7 times and Bharat 22 ETF at about 11 times. This is a fraction of the current Nifty50 PE at over 21 times.
But does this make them worth betting on? There are five good reasons for long-term stock investors to steer clear of these ETFs.

Aarati Krishnan January 17, 2023 5 Comments

Markets

Prime Equity Outlook 2023

In our Prime Equity outlook in 2022 we said “We would expect any correction triggered by global rates to take the Nifty 50 down to the 12,500 to 15,000 range. In this range, investors should deploy cash and swoop in on buying opportunities rather than develop cold feet!”.
The equity market world over did see a correction in 2022 along these lines and as geo-political factors took hold. Indian markets too, experienced a rout in the first half of the year hitting close to our predicted range at 15,200 by mid-June.
Even so, India did a lot better than its emerging market peers. The Nifty 50 closed the year on a positive note, with a modest 4% return. Simply buying the Nifty 50 would have delivered a good 18% from June until December 2022. Our own stock picks delivered well in 2022, too.
But with global recession on the cards, still high Nifty 50 and a hostile rate scenario, can 2023 be better than 2022? For Indian markets, there are some key trends that we think can play out. We look at where the Nifty 50 could be headed, and where opportunities lie.

N V Chandrachoodamani January 15, 2023 4 Comments

A new approach to gauge market mood - The Nifty VMI tool

Markets

A new approach to gauge market mood – The Nifty VMI tool

“Is this a good time to invest in the market?” This is a question that many of you ask us when you want to deploy additional money. Gauging market mood is never easy and this is often done mostly by short-term traders. When investing for the long term, we typically tell you that it is best to invest in phases and avoid trying to time the market. Investing in phases (or call it SIP) and holding for the long term can help contain downsides and it is a proven strategy.

Vidya Bala January 12, 2023 28 Comments

Technical outlook – where the Nifty 50 could be headed in 2023

Markets

Technical outlook – where the Nifty 50 could be headed in 2023

In the previous update on the targets for the Nifty 50, the expectation was that the index could head to the next target at 19,100. Contrary to expectations, the index has been in a correction phase in the past few weeks. In today’s report, thus, we try to assess both the short-term and the medium-term outlook for the Nifty 50 index.

B Krishnakumar January 10, 2023 5 Comments

Prime Debt outlook 2023: Handling a rate pause

Bonds & Deposits

Prime Debt outlook 2023: Handling a rate pause

After bungee jumping off a cliff, it is good to wait for the adrenaline rush to wear off. Indian bond markets are in exactly this situation now. After falling sharply as rates rose, bond prices are pausing to take a breath. In our debt outlook last year we expected rates to continue their upward climb and recommended strategies to play this. During the course of 2023, we think interest rates could top out and stabilise. We tell you what this will mean for your debt portfolio.

Aarati Krishnan January 8, 2023 20 Comments

Quarterly review: Prime Portfolios performance review & quarter changes

Mutual funds & ETFs

Quarterly Review: Prime Portfolios performance review & quarter changes

Prime Portfolios are a set of 19 unique portfolios that meet over 30 different investor timeframes and needs. Prime Portfolios are listed under Ready-to-use-portfolios in the Recommendations dropdown. These portfolios primarily use mutual funds, but where there are better-suited products such as deposits or government schemes, the portfolios include those as well.

We review these portfolios every quarter and make changes to remove underperformers or to include any new investment opportunity or product that may come by. At the end of each year, we review the performance of key portfolios, in addition to discussing the changes we make.

PrimeInvestor Research Team January 5, 2023 2 Comments

Quarterly review - Changes to recommendations in Prime Funds and Prime ETFs

Mutual funds & ETFs

Quarterly review: Changes to recommendations in Prime Funds & Prime ETFs

Prime Funds is our list of recommendations in equity, debt, and hybrid mutual funds that are worth investing in. Prime Funds narrows down your choices from the thousands of funds that there are, into a concise list of funds that span different styles. Prime Funds are selected based on performance, portfolios, and investment strategies.

In this quarter’s review, we have added to equity funds to play themes that are ripe and made changes to the hybrid recommendations to include better return options. We have made minimal changes to our debt fund recommendations.

PrimeInvestor Research Team January 3, 2023 24 Comments

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