<ul><li>Retail investors who drove the small and midcap stocks rally last year might face the brunt of its correction this year.</li><li>Not only do retail investors hold more small and midcap stocks than large caps, but their holdings have also gone up.</li><li>Even as correction is at play, there are cherry-picking opportunities for investors, assure experts, due to India’s macro fundamentals. </li></ul>The mid- and small-cap retail investors seem star-crossed at the moment as the markets continue to punish most stocks in these segments this quarter. The retail investors could see the worst of the ongoing rout, as they hold more such stocks compared to previous years. A whopping ₹6.6 trillion ($80 billion) has been lost in the small-cap stocks alone in less than two weeks since the authorities raised concerns over this overheating sector, <a href="https://timesofindia.indiatimes.com/business/india-business/bse-sensex-nifty-small-cap-stocks-madcap-stocks-stock-market-fall/articleshow/108481553.cms">reports Bloomberg</a>. Proportionately, retail investors presence in small and midcap stocks is more than it is in the large caps. Also, their holdings in these indices have also gone up in the last four years, as per data by <keyword id="20038713" type="General" weightage="20" keywordseo="kotak-institutional-equities" source="keywords">Kotak Institutional Equities</keyword>. “The excessive valuations in these segments (small and midcap) driven by the irrational exuberance of retail investors have been a concern for many months now. But it has taken the strong message from the regulator SEBI to trigger a correction in the <keyword id="19896381" type="General" weightage="20" keywordseo="nifty" source="keywords">Nifty</keyword> Small cap index by 10 per cent from the February 8 peak,” said <keyword id="19931025" type="General" weightage="20" keywordseo="v-k-vijayakumar" source="keywords">V K Vijayakumar</keyword>, chief investment strategist at <keyword id="19933343" type="General" weightage="20" keywordseo="geojit-financial-services" source="keywords">Geojit Financial Services</keyword>. End of good times? For a long time, small and midcaps have been providing good returns to investors in the last few years. As much as 61% of midcap and 63% of small-cap stocks have given more than 30% return in the past year. “In our view, high return expectations and high returns over the past three years may have reinforced their direct participation through mid- and small-cap stocks and indirect participation through mid and small-cap funds,” says Kotak. Even after seeing a correction of 5% in the NSE Midcap 100 and 10% in the Nifty Smallcap 100 over the past month, on a one-year basis, their performance has been good. They’re still up 53% and 58%, respectively, in the past one year. The rally drivers, however, might have to face the worst of it too. In the recent crash, hundreds of smallcap stocks hit lower circuits, and a bulk of stocks have given negative returns in the last month. A rising tide of retail investors A relentless rally last year may have driven more and more retail investors to enter these segments at a rather risky juncture. Now, retail investors hold more proportion of small and midcap stocks compared to large caps, with a sharp rise in the last four years, according to the data by Kotak Institutional Equities. “It would appear that retail investors have taken a more positive view on small-cap stocks and a more active part in the rally in smallcap stocks and are thus more exposed to the ongoing correction,” says the Kotak report. A bulk of mid and small cap stocks have also run up ahead of their consensus estimates. “We find the valuations of the majority of the mid-cap and small-cap stocks to be quite expensive, especially in the context of their business models as well as their own history,” Kotak adds. Retail/FPI Holdings across indices: <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Investor </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NSE 100 March 2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NSE 100 Dec 2023 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NSE Midcap 100 March 2019 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NSE Midcap 100 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NSE Smallcap 100 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NSE Smallcap 100 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Retail </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.9% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FPIs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.3% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">19.2% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.9% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.1% </td></tr></tbody></table> Retail investors’ strategy has been just opposite to that of foreign portfolio investors (FPIs). FPIs hold more large caps than others and have reduced their holdings in small and midcaps over the years. A hopeful outlook Even as the broader market saw a selloff recently, Nifty itself has suffered less, point out experts. From its peak, the smallcap index is down 13.5% and the midcap index is down 6.8%. But Nifty is stable with a minor cut of 2.1%, says <keyword id="20955398" type="General" weightage="20" keywordseo="dr-vijayakumar" source="keywords">Dr Vijayakumar</keyword>. Most experts expect a correction even in the broader markets going ahead. But they do point out that the market will provide cherry-picking opportunities for investors, as India’s macro fundamentals are intact. <keyword id="19949381" type="General" weightage="20" keywordseo="fitch-ratings" source="keywords">Fitch Ratings</keyword> revised its FY24 and FY25 GDP growth forecasts upwards to 7.8% and 7% respectively on Thursday. “Domestic demand, especially investment, will be the main driver of growth, amid sustained levels of business and consumer confidence,” it said, adding that it expects the Indian economy to see ‘strong expansion’. Dr <keyword id="19931026" type="General" weightage="20" keywordseo="vijayakumar" source="keywords">Vijayakumar</keyword> says that the turbulence in the market will provide cherry-picking opportunities. “From now on irrational exuberance will take a back seat and rational valuations and quality will be the driving force. This turbulence will separate the men from the boys. High-quality private sector banks and the leading names in capital goods, telecom and autos can be accumulated in a calibrated manner,” he adds.

Boom2Bust: Retail investors to face the brunt as small and midcap corrections wipe out billions of dollars

<ul><li><keyword id="46013" type="General" weightage="50" keywordseo="kotak-mahindra-bank" source="Orion">Kotak Mahindra Bank</keyword> today unveiled a new superapp for investments called <keyword id="14095686" type="General" weightage="80" keywordseo="kotak-cherry" source="Orion">Kotak Cherry</keyword>. </li><li>The new service will allow users to manage their investments across different instruments like equity, bonds, mutual funds and even pension schemes. </li><li><keyword id="39409" type="General" weightage="100" keywordseo="kotak" source="Orion">Kotak</keyword> says that eventually, other financial products like insurance, investment advisory service and more will be added to the platform. </li></ul>Kotak Mahindra Bank, one of India’s leading banks, today launched a new product called Kotak <keyword id="62137" type="General" weightage="80" keywordseo="cherry" source="Orion">Cherry</keyword>. Although the name does not give it away, it’s a new investment service from one of India’s leading private banks. Retail investors created millions of new demat accounts every month since the pandemic broke out in 2020, participating in India’s equity markets amid an unprecedented bull run. Now, Kotak wants to bank on its name and capitalise on the interest in stock market investments. “Led by a solid team of credible and experienced professionals, we believe deep domain experience will matter when it comes to investing. It is a one-stop platform that will help people invest like experts,” said Srikanth Subramanian, CEO-designate, Kotak Cherry, in an announcement today. <cmsannotation type="cmsannotation" annotationid="Superapp of investments" comment="subhead" text="Superapp of investments">Superapp of investments</cmsannotation> Unlike other services which have opted for breaking down their target audience based on the type of investment, for instance, equity, mutual funds, or deposits, Kotak says that its service is a one-stop destination for everything related to investments. This means Kotak Cherry users will be able to do everything from deposits to stocks, bonds, mutual funds and even pension schemes. Kotak’s service will also allow its users to manage their investments made on other banking and investment providers. “Cherry will soon have complete open architecture, where the app user will soon be able to maintain their banking and broking relationships with providers of their choice, while still benefiting from the full power of our domain experience and curated services,” added Subramanian. Kotak says that eventually, it will include other financial services like stock baskets a la Smallcase, life, medical and general insurance, and international investing, too. It’s not clear if Kotak will achieve this via an API, or develop a custom solution that hooks into other platforms. <cmsannotation type="cmsannotation" annotationid="Free initially, but will be eventually chargeable, says Kotak" comment="subhead" text="Free initially, but will be eventually chargeable, says Kotak">Free initially, but will be eventually chargeable, says Kotak</cmsannotation> The Kotak Cherry service will remain free while it garners users – the bank has a target of one million users by the end of this year. Eventually Kotak will announce a subscription model later. It refrained from specifying if every service on Kotak Cherry will need a subscription, or if only specific advisory-related services will be chargeable. Kotak Cherry is currently available on Android and iOS, or via the web at <a href="https://www.kotakcherry.com/">Kotakcherry.com</a>. It remains to be seen if users are really interested in putting all their eggs into Kotak’s basket, but a one-stop-shop for investments may prove to be interesting. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/rakesh-jhunjhunwalas-delta-corp-stock-lost-more-than-a-third-of-its-value-in-two-months/articleshow/91957129.cms">Rakesh Jhunjhunwala’s gamble on this stock is proving to be a bust after it slips 20% in a month</a> <a href="https://www.businessinsider.in/tech/news/new-vpn-rules-expressvpn-removes-its-servers-from-india-other-companies-may-pull-out-too/articleshow/91959389.cms">New VPN rules: ExpressVPN removes its servers from India, other companies may pull out too</a> <a href="https://www.businessinsider.in/business/corporates/news/delhivery-is-nothing-like-zomato-or-paytm-credit-suisse-expects-the-stock-to-outperform/articleshow/91957394.cms">Delhivery is nothing like Zomato or PayTM - Credit Suisse expects the stock to outperform</a>

Kotak’s superapp for investments hopes to gain one million users by end of the year

<ul><li>Budget amendment proposes to do away with long-term capital gains tax on debt investments. This effectively ends the tax arbitrage that used to exist between bank deposits and debt schemes. </li><li>Experts view this as a negative for <keyword id="6357979" type="General" weightage="20" keywordseo="mutual-funds" source="Orion">mutual funds</keyword> as investors may move capital from debt schemes to bank FDs or other long-term instruments like non-convertible debentures. </li><li>According to CLSA, the measure would have a moderate to low impact on profitability, as bulk of the revenue/profitability for AMCs accrues from equity assets and non-liquid debt AUMs are neither higher growth nor higher profitability segments. </li></ul> It is going to be a busy weekend for mutual fund advisors and distributors, with the government proposing to change the taxation structure of debt schemes. With the change in taxation, distributors and advisors are rushing to lock in large amounts of investments from their HNI customers before the financial year ends. As per the proposed changes in the Finance Bill, investors in debt funds will have to pay tax according to their income slabs. Investors have so far benefited from indexation while calculating long-term capital gains from debt funds but this will now longer be available from 1 April, 2023. However, all investments made before 31 March 2023 will continue to enjoy indexation and LTCG benefits. According to FY24’s Budget amendment, capital gains arising from any investments made after 1 April, 2023, in non-equity mutual fund schemes will not be eligible for long-term capital gains benefits. Mutual fund distributors have been spamming their HNI clientele all morning about these proposed changes so that they can lock in their investments before the new fiscal year to take advantage of the indexation benefits. Explains CA Manish. P Hingar, founder at Fintoo, “This move may have a negative impact on all debt funds…We may see a shift from long-term debt funds to equity funds, and money may be directed towards sovereign gold bonds, bank fixed deposits, and non-convertible debentures in the debt category. This is good news for banks as they can attract customers with higher interest rates and increase their borrowing and saving book sizes.” Fund houses are screaming blue murder, especially the non-bank backed ones, as the amendment has come as a complete surprise. Few fund houses wanted to go on record to speak on the subject, as they feel it is a negative for the bond funds. The government is seeking to do away with the tax arbitrage that currently existed between debt funds and bank deposits. So far interest income from bank deposits have been taxed at slab rates, while investments in debt funds of a duration of over 36 months have been taxed at a long-term capital gains tax rate of 20% with indexation benefits. Indexation is nothing but a methodology that helps reduce tax burden by adjusting for inflation. Now this option will no longer be available to debt investors. Mutual funds are an unhappy lot as this takes away the added benefit that investors of debt schemes had over bank deposits. Srikanth Subramanian, CEO, Kotak Cherry said, "The amendment in the finance bill will have significant structural changes to the way we invest. For mutual funds to get investor interest, it’ll now have to purely be on their ability to add extra ‘risk adjusted returns’ and not because of any tax arbitrage.” The advantage of paying lower tax on a debt instrument like mutual fund will no longer be available to investors or savers. The playing field is now more even, believe experts. However this will benefit the corporate bond market where there will be renewed interest from retail investors, and this will also add depth to the liquidity which again will mean better pricing for the end customer, explains Subramanian. Analysts believe that this is negative for mutual funds, as debt schemes (barring liquid) contribute to 19% of AUMs and anywhere up to 14% of revenues. According to CLSA, the measure would have a moderate to low impact on profitability, as bulk of the revenue/profitability for AMCs accrues from equity assets and non-liquid debt AUMs are neither higher growth nor higher profitability segments. The measure will also not impact liquid MFs of ₹6.6 trillion materially, as they are short-term products and there is no material change in tax attractiveness. For life insurers, there appears to be no change in the taxation structure in the budget. An unintended impact of this could be felt by non-banking financial institutions that rely on mutual funds for some of their funding requirements. With flows into debt schemes slowing after this move, NBFCs may have to rely more on bank funding than mutual funds.

Debt schemes of MFs lose edge over bank deposits as Budget proposes to scrap LTCG & indexation benefits

<ul><li>Volatility will continue to plague stocks in 2023 as well with focus shifting to a soft landing and subsequent economic recovery.</li><li>Past recessions show that even as exports and India’s economic growth tend to slow down, recovery is expected to be faster.</li><li>While concerns over recession and interest rates will continue, the second half of the year will factor in the general election outcome. </li></ul>Equities have had a rough ride in 2022 and the new year is likely to be another volatile year. Volatility will continue to plague markets in 2023 too, but markets are still expected to generate positive returns next year. After swinging 20% in 2022, equities are going to end 2022 with 5% gains – despite high inflation, rising interest rates and the dollar’s persistent strength. Some of these concerns are likely to spill over into 2023 as well. But the debate is now centred around a soft landing by leading developed economies and a gradual economic recovery. It’s not surprising that many strategists believe that the benchmark <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> could oscillate between 17,000 and 20,000 in 2023. Even if the world slips into a recession, India is expected to see much lower contraction in economic growth compared to other economies. According to a Bank of America analysis of recessions across three decades, India’s growth contracts by 180 basis points in a recession, compared to 280 basis points seen in the USA. Bank of America says that economic growth contraction for India is less protracted (1-3 quarters against 2-7 quarters for the USA) and India also recovers faster. This view is also echoed by Morgan Stanley, which says, “Emerging markets are likely to benefit from a relatively more benign world vs. 2022, and India's trailing outperformance could take a breather in H1 2023, given relative valuations.” Volatility expected to spill over into the new year too The volatility that hit markets in 2022 because of factors including the Russia-Ukraine war, inflation, and recession fears in the US is expected to spill over into the new year as well. This is because central banks across the world are still battling inflation and higher interest rates will impact growth. In India, Reserve Bank of India Governor Shaktikanta Das has also voiced his <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-35-bps-taking-rates-to-a-high-of-6-25/articleshow/96045841.cms">opinions on handling inflation</a>, having hiked rates five times this year. Das, in his recent monetary policy statement, said that due to the geopolitical uncertainty and financial market volatility, further calibrated monetary policy action is needed to keep inflation expectations “anchored”, saying that the RBI will keep an “Arjuna’s eye” on inflation and react as needed. “The year 2022 has been volatile for markets – both India and global. 2023 is going to be no exception to that. With inflation still being one of the key factors to watch out for, it would be interesting to see how things unfold and how swiftly central banks adapt to it. Indian markets have outperformed global peers by a margin,” said Srikanth Subramanian, CEO of investment platform Kotak Cherry by Kotak Investment Advisors. Besides, there is continuing fear around recession hitting major global economies in 2023. “Key point to note here is if recession hits hard, then India will also face the heat and it will be very difficult for Indian markets to stay decoupled for long,” said Subramanian. The sharp fall in <keyword id="123399" type="General" weightage="20" keywordseo="us-markets" source="Orion">US markets</keyword> indicate recession fears among investors as the benchmark index Dow Jones Industrial Average is down by over 10% in 2022 so far while the tech-heavy Nasdaq has tanked over 30% so far this year. At the same time, Indian markets have been quite resilient but may not remain so for long if a <keyword id="58692" type="General" weightage="20" keywordseo="us-recession" source="Orion">US recession</keyword> comes true. Benchmark indices <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> and Nifty50 have gained about 4% in 2022 so far. Morgan Stanley says, “If the global economy slips into recession, it would not be good news for India, which exports about 20% of its output.” Second half of the 2023 will factor in the general election outcome While concerns over recession and interest rates will continue, the second half of the year will factor in the general election outcome. “Going into H2 2023, the market should start factoring in its view on the general elections (slated for May 2024) with either outright repositioning or considerable hedging of portfolios,” said a report by Morgan Stanley. Besides, analysts believe markets will improve in the second half of the year given that the inflation is likely to settle by then along with a loosening monetary policy. “Global growth outlook is likely to improve in H2 CY23 (especially US) due to sharp moderation in inflationary pressures in CY23, loosening monetary policy towards end CY23 and lower base,” said Antique Stock Broking in a report. Further, analysts are overweight on financials, consumer discretionary, technology and infrastructure. Morgan Stanley says it is overweight on consumer discretionary, industrials, financials, and technology and underweight all other sectors. Electric vehicles, clean energy, digital transformation and air travel cycle are among the key themes for 2023. “We continue to pursue ideas around clean energy spending, defence indigenisation, a new residential property, auto, and air travel cycle, a multiyear credit cycle for financials and life insurance, digital transformation, and market share concentration, plus horizontal growth for discretionary and staple consumption and electric vehicles as key themes for 2023,” said Morgan Stanley. Stocks that Morgan Stanley is overweight on <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">YTD Change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nykaa </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-54% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maruti Suzuki India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Titan Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">SBI Cards &amp; Payment Services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-13% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindustan Aeronautics </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">112% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-20% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">UltraTech Cement </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-9% </td></tr></tbody><tbody></tbody></table>Note: Change as on 12:30 p.m December 21 “We believe that the private capex cycle is about to resume. With the Made in India and PLI programmes, the government has maintained its focus on infrastructure. The financial sector as a whole, banks, insurance, industrials, and cement will do well,” said Manoj Kumar Dalmia, founder and director, Proficient Equities. Once the volatility settles by the second half of 2023, analysts expect markets to pick up pace. Bank of America expects Nifty to end 2023 at 19,500, implying muted but positive returns. Despite the volatility, India’s valuations are expected to remain elevated in the new year. Clearly, 2023 will see some of the older themes continue, even as the focus shifts to economic recovery and earnings growth. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/ecommerce/news/prime-time-tv-ott-now-have-competition-from-online-shopping-indians-shop-the-most-after-8-pm-says-meesho/articleshow/96396601.cms">Prime time TV &amp; OTT now have competition from online shopping – Indians shop the most after 8 pm, says Meesho</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/varanasi-tirupati-puri-amritsar-are-the-top-travel-spiritual-destinations-in-india-as-per-oyo/articleshow/96394438.cms">Varanasi, Tirupati, Puri are the top travel destinations, as spiritual tourism gains favour reveals OYO</a>

Indian economy to recover faster than developed markets – Nifty50 may end 2023 at 19,500

<ul><li>India’s benchmark indices <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> and <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> overcame<a href="https://www.businessinsider.in/stock-market/news/indian-markets-open-lower-amid-unrest-in-china-over-zero-covid-paytm-adani-transmission-hero-motocorp-in-focus/articleshow/95815834.cms"> early-morning jitters</a> to scale <a href="https://www.businessinsider.in/stock-market/news/nifty50-hit-new-all-time-highs-bharat-petroleum-reliance-industries-surge-metal-stock-drag/articleshow/95822928.cms">new peaks</a> – at 62,701 and 18,614 respectively. </li><li>Both the indices also registered new record closings on Monday. </li><li>Bharat Petroleum and <keyword id="6355199" type="General" weightage="100" keywordseo="reliance-industries" source="Orion">Reliance Industries</keyword> emerged as the top gainers on the Nifty50, adding ₹62,700 crore in market capitalisation. </li><li>A cool down in crude oil prices, healthy flows in SIPs and resilient performance by India Inc in Q2 are some of the factors driving the indices, analysts said. </li><li>Analysts recommend investors remain disciplined and balanced in their approach to equity investments, instead of making any extreme movements. </li></ul>India’s benchmark indices Sensex and Nifty50 came off new life-time peaks to close higher on Monday, buoyed by the oil and gas sector while shrugging off negative cues from Asian markets. State-run Bharat Petroleum (<keyword id="44555" type="General" weightage="80" keywordseo="bpcl" source="Orion">BPCL</keyword>) and Reliance Industries emerged as the top gainers, while metal stocks dragged. The Sensex and the Nifty50 overcame<a href="https://www.businessinsider.in/stock-market/news/indian-markets-open-lower-amid-unrest-in-china-over-zero-covid-paytm-adani-transmission-hero-motocorp-in-focus/articleshow/95815834.cms"> early-morning jitters</a> to scale <a href="https://www.businessinsider.in/stock-market/news/nifty50-hit-new-all-time-highs-bharat-petroleum-reliance-industries-surge-metal-stock-drag/articleshow/95822928.cms">new peaks</a> – at 62,701 and 18,614 respectively, making it the fifth consecutive day of gains. The indices outperformed Asian markets and closed up 0.27-0.34% higher – marking a record high closing for the Sensex and the Nifty50 at 62,505 and 18,563 points, respectively. Amongst the key triggers driving the indices are a cool down in crude oil prices, healthy flows in systematic investment plans (SIP), and resilient performance by India Inc in Q2, analysts said. Brent crude oil prices were hovering around $81 per barrel, falling 3.2% today on worries about demand from China as the country sees a rise in Covid-19 cases. “Nifty clocked fresh all-time highs on November 28 going against the global cues. Progressive and prudent macro policies, resilient corporate earnings in Q2FY23, robust tax collections, early signs of recovery in IIP and GDP and first signs of cooling inflation have all excited investors including FPIs (foreging portfolio investors) to keep pumping money into the markets,” said Deepak Jasani, head of retail research, HDFC Securities. Amongst the major sectoral gainers were fast moving consumer goods (FMCG), auto and PSU banks. While the IT sector was amongst the top gainers earlier in the day, it closed marginally in the red. Metal stocks lost shine today, with the index declining 1.14%. The Rupee closed flat at 81.66, against 81.68 on Friday. Bharat Petroleum, Reliance Industries, Hero MotoCorp, Tata Consumer, and SBI Life were the top gainers on the Nifty50 index today – gaining between 1.84% to 5.04%. Bharat Petroleum and Reliance Industries together added ₹62,700 crore in market capitalisation. Here are the top gainers and losers on the Nifty500 index on Monday: <div type="image" title="daily-profit-loss-5" msid="95830090" hostid="261" sizebytes="51130"></div> <cmsannotation type="cmsannotation" annotationid="Analysts recommend discipline and balance" comment="subhead" text="Analysts recommend discipline and balance">Analysts recommend discipline and balance</cmsannotation> Analysts recommend investors remain disciplined and balanced in their approach to equity investments, and refrain from making any extreme movements. “Indian markets are defying global weakness and touching all-time highs. This is on the back of renewed interest from foreign institutional investors as the Indian decoupling story continues to play out. However, one must also realise that as we continue to see better growth rates than the world, our valuations too are priced at those premiums,” said Srikanth Subramanian, CEO, Kotak Cherry. On the BSE, advances outnumbered declines – 1,185 stocks ended higher while 815 closed in the red. <cmsannotation type="cmsannotation" annotationid="Asian markets see red" comment="subhead" text="Asian markets see red">Asian markets see red</cmsannotation> Most of the major Asian markets declined on Monday, with Hong Kong’s Hang Seng index posting the biggest decline at 1.57% and Taiwan’s TWSE Capitalization Index posting a 1.5% fall. The Shanghai Composite Index closed 0.75% in the red, while South Korea’s KOSPI fell 1.21%. “Global stock markets traded lower after a series of protests in China over the weekend, against strict mobility restrictions to combat the country’s ongoing Covid outbreak, hit sentiment and threatened to weigh on economic activity,” Jasani said. <cmsannotation type="cmsannotation" annotationid="Buoyant festive demand, cooling crude oil prices amongst tailwinds for Indian economy" comment="subhead" text="Buoyant festive demand, cooling crude oil prices amongst tailwinds for Indian economy">Buoyant festive demand, cooling crude oil prices amongst tailwinds for Indian economy</cmsannotation> According to Ajay Menon, MD and CEO, broking and distribution, Motilal Oswal, the buoyancy in festive demand, which has boosted the auto sector among others, is expected to continue thanks to the marriage season. This year’s festive season was also the first uninterrupted one since 2020, giving buyers enough reason to splurge. For instance, the auto sector has seen <a href="https://www.businessinsider.in/business/auto/news/indian-car-makers-drive-the-festive-boom-two-wheelers-showing-signs-of-revival/articleshow/95257140.cms">registrations</a> of passenger vehicles, commercial vehicles and tractors for October rise 35-66% from the 2019 levels. On the jobs front, too, around 4,000 openings were posted every day during the festive season, which saw the<a href="https://www.businessinsider.in/careers/news/over-2-lakh-jobs-created-each-day-this-festive-season-says-report/articleshow/95204035.cms"> creation of 2 lakh jobs</a>. Foreign institutional investors (FII) were net buyers on Monday, ploughing in ₹936 crore, while domestic institutional investors (DII) bought equities worth ₹88 crore. <div type="image" title="sectoral-indices-5" msid="95830105" hostid="261" sizebytes="49266"></div> SEE ALSO: <a href="https://www.businessinsider.in/personal-finance/news/digital-lending-platforms-see-3x-year-on-year-rise-in-disbursals-to-14016-crore-in-q2-fy23/articleshow/95821140.cms">Digital lending platforms see 3x year-on-year rise in disbursals to ₹14,016 crore in Q2 FY23</a> <a href="https://www.businessinsider.in/stock-market/news/a-year-after-market-debut-paytm-is-the-worst-performer-among-recent-large-ipos-cartrade-policybazaar-and-lic-join-the-party/articleshow/95762071.cms">A year after market debut, Paytm is the worst performer among recent large IPOs – Cartrade, Policybazaar and LIC join the party</a> <a href="https://www.businessinsider.in/stock-market/news/india-vix-cools-down-to-pre-covid-levels-heres-why-and-where-it-is-headed/articleshow/95743166.cms">India VIX cools down to pre-Covid levels – here’s why and where it is headed</a>

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Boom2Bust: Retail investors to face the brunt as small and midcap corrections wipe out billions of dollars

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Indian economy to recover faster than developed markets – Nifty50 may end 2023 at 19,500

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Indian markets scale life-time peaks powered by BPCL and Reliance Industries

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