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Adani Ports 737.45 (-0.22%)
Asian Paints 3110.45 (-2.21%)
Axis Bank 673.00 (-0.46%)
B P C L 385.90 (1.86%)
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Add stability to your MF portfolio with large-cap exposure

Add stability to your MF portfolio with large-cap exposure
by 5paisa Research Team 23/11/2021

Large caps tend to fall less when compared with mid-cap and small-cap funds. Hence, provides some downside protection to your portfolio. Read on to find out more.

Large caps that are usually termed blue chips offer great downside protection when compared with mid-caps and small-caps. However, the returns provided by them during a rally is less when compared to midcaps and small-caps. This is the reason why most investors shy away from investing in large caps as they provide lower returns. In this article, we have explained what are large-cap funds and how they can help cushion your equity portfolio when the equity market is not so exciting.

What are large-cap funds?

As defined by the Securities and Exchange Board of India (SEBI), large-cap funds are those which should dedicate a minimum of 80% of their assets to the top 100 stocks in terms of full market capitalization.

Comparison between large, mid and small-cap

To compare the three, we have taken Nifty 100 Total Returns Index (TRI), Nifty Midcap 150 TRI and Nifty Smallcap 250 TRI as the representative of large-cap, mid-cap and small-cap funds, respectively. The period for comparing is from November 21, 2011, to November 22, 2021.

Indices 

Average Rolling Returns (%) 

1-Year 

3-Year 

5-Year 

Nifty 100 TRI 

16.00 

12.96 

12.94 

Nifty Midcap 150 TRI 

22.05 

17.37 

17.61 

Nifty Smallcap 250 TRI 

21.05 

13.84 

14.14 

As we can see from the above table that, mid-caps and small-caps indeed perform better than large-caps in terms of rolling returns. The purpose of using rolling returns is that it gives a better picture than trailing returns. However, only looking at returns tells you the half story. Hence, it makes sense to also look at risk metrics.

Indices 

Risk Metrics 

Standard Deviation (%) 

Sharpe Ratio 

Sortino Ratio 

Maximum Drawdown (%) 

Nifty 100 TRI 

16.87 

0.94 

1.17 

-37.92 

Nifty Midcap 150 TRI 

17.45 

1.26 

1.50 

-43.06 

Nifty Smallcap 250 TRI 

18.89 

1.11 

1.29 

-59.78 

The above table clearly shows that in terms of risk as measured by standard deviation and maximum drawdown, large-caps pose relatively less risk than that of mid-caps and small-caps. Therefore, having a large-cap exposure in your portfolio would help you to contain the downside risk to some extent rather than just investing in mid-caps and small-caps. Moreover, it is prudent to access your risk profile, as it would help you decide the appropriate asset allocation.

Below is the list of top five large-cap funds

Fund Name 

Trailing Returns (%) 

1-Year 

3-Year 

5-Year 

Axis Bluechip Fund 

32.36 

21.60 

20.34 

Canara Robeco Bluechip Equity Fund 

35.02 

22.26 

19.35 

BNP Paribas Large Cap Fund 

32.96 

20.34 

17.07 

Kotak Bluechip Fund 

38.64 

21.05 

17.04 

IDBI India Top 100 Equity Fund 

40.70 

21.02 

15.84 

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Penny Stock Update: These stocks gained up to 10.00% on Tuesday

Penny Stock Update: These stocks gained up to 10.00% on Tuesday
by 5paisa Research Team 23/11/2021

On Tuesday, the Indian equity market closed on a positive note after closing deep down in red on Monday. BSE Metal index is the top gainer and BSE Information Technology is the top loser in today’s trade.

After the Indian equity market closed deep down yesterday, which wiped off several investors’ wealth, today equity market closed on a positive note.

Today Nifty 50 and BSE Sensex indices closed with green mark up by 86.80 points i.e., 0.50% and 198.44 points i.e., 0.34% respectively. Stocks supporting the BSE Sensex and Nifty 50 index up were Reliance Industries and Bajaj Finserv. Whereas, stocks that dragged the BSE Sensex and Nifty 50 down were Infosys, Asian Paints and IndusInd Bank. On Tuesday the BSE Sensex and Nifty 50 index opened down by 0.82% and 0.77% from the previous close.

In Tuesday's trading session the S&P BSE Metal, S&P BSE Power, S&P BSE Utilities, S&P BSE Realty and S&P BSE Basic Material were top gainers. BSE Metal index consisting of stocks such as Vedanta Ltd, NMDC Ltd, JSW Steel Ltd, Coal India Ltd, Jindal Steel & Power Ltd, Steel Authority of India Ltd, Hindustan Zinc Ltd, Tata Steel Ltd, Hindalco Industries Ltd and APL Apollo Tubes Ltd were the top gainers.

In today’s trade, S&P BSE Information Technology was the top loser. The index consisting of stocks such as Vakrangee Ltd, Route Mobile Ltd, Infosys Ltd, 63 Moons Technologies Ltd, Cigniti Technologies Ltd and Eclerx Services Ltd were the top losers.

Here is the list of penny stock that gained up to 10.00% on a closing basis on Tuesday, November 23, 2021: 

Sr No.                 

Stock                 

LTP                  

Price Gain%                 

1.                 

Vikas Ecotech Ltd  

2.75  

10.00  

2.                 

Ansal Housing Ltd  

6.65  

9.92  

3.                 

Suvidhaa Infoserve Ltd  

11.60  

7.91  

4.                 

Visagar Polytex Ltd  

1.00  

5.26  

5.                 

LCC Infotech Ltd  

2.10  

5.00  

6.                 

 
Sab Events & Governance Ltd.  

5.25  

5.00  

7.                 

 
Future Market Networks Ltd  

8.45  

4.97  

8.                 

Sintex Plastics Technology Ltd  

12.70  

4.96  

9.                 

STL Global Ltd.  

14.85  

4.95  

10.                 

BLB Ltd  

11.70  

4.93  

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Superstar investor: How Dolly Khanna shuffled her equity portfolio

by 5paisa Research Team 23/11/2021

Chennai-based Dolly Khanna, who has been an active investor in the stock markets since 1996, has been reshuffling her portfolio which is now upwards of $45 million (Rs 335 crore).

She struck a new investment recently and has marginally raised her holding in at least four portfolio companies. Khanna also booked profits in eight companies, including a company where her stake fell below 1%.

Khanna, whose investments are managed by her husband Rajiv Khanna, is known to invest in lesser-known companies in the mid- and small-cap space. In all, she holds at least 1% stake in as many as 16 companies, as per latest quarterly shareholding data by stock exchanges.

On Monday, Khanna struck another investment by acquiring nearly 1% in Ajanta Soya, which makes vanaspati, cooking oils and bakery products.

What did Khanna buy?

Khanna struck a new investment in New Delhi Television Ltd (NDTV) amid speculation that billionaire Gautam Adani-led Adani Group might acquire the news media company. 

The exact time and price details of her investment is not known, but Khanna is estimated to have invested about Rs 5.6 crore in the media company controlled by Prannoy and Radhika Roy.

Khanna has marginally increased her stake in Nitin Spinners (1.64%), Rama Phosphates (1.89%), Asahi Songwon Colors Ltd (1.41%), and RSWM (1.12%). On the other hand, she kept her stake in NCL Industries (1.77%), Rain Industries and Polyplex Corporation unchanged.

What did Khanna sell?

Khanna trimmed her holding in roughly seven to eight portfolio firms. These include Nucleus Software Exports Ltd, Mangalore Chemicals Fertilizers Ltd, Aries Agro Ltd, Butterfly Gandhimathi Appliances Ltd, KCP Ltd, Talbros Automotive Components Ltd, Deepak Spinners Ltd, and Shemaroo Entertainment Ltd.

In these companies, her stake fell below 1% — the level at which companies are obliged to publicly disclose shareholder names to the stock exchanges.

The latest buy

Khanna bought a 0.87% stake in Ajanta Soya through bulk deals worth over Rs 2 crore. The stock has yielded over 200% returns since the beginning of 2021, rising from Rs 60 apiece to Rs 183.75 per share on Tuesday, when the stock touched the 20% upper limit.

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F&O Cues: Key support & resistance levels for Nifty 50

F&O Cues: Key support & resistance levels for Nifty 50
by 5paisa Research Team 23/11/2021

Today the Nifty F&O action for November 25 expiry shows 17,500 to remain an important level.

The highest put and call writing was seen at 17,500.

Indian equity market finally broke four days of losing streak in today’s trade. Nevertheless, the opening of the trade was not so encouraging and it seemed that today also, we will close in deep red. Frontline equity indices opened with a gap down and made intraday low in the first 15 minutes of trading. However, by the end of the day, Nifty closed in green and was up 0.50% or 86.8 points at 17503.3 and also bounced back from its 20 weekly EMA. Nifty VIX continued its uptrend and was up by 2.83% in today’s trade and closed at 18.02

Activity in the F&O market for the weekly expiry on November 25, 2021, shows 17,800 to act as the first line of strong resistance followed by 18,000. The highest call option open interest (161589) for Nifty 50 stood at a strike price of 18,000. In terms of the highest addition of open interest in the call options front, it was at 17,500 in the last trading session. A total of 26,275 open interest was added at this strike price. The next highest call option open interest stands at 17,800 where total open interest stood at 126,544.

In terms of put activity, the highest put writing was seen at a strike price of 17,500 (26,275 open interest added on November 23), followed by 17,650 (11,850 open interest added on November 23). The highest put open interest unwinding was seen at a strike price of 17,700 (6346 open interest shed on November 23).

Highest total put open interest (101,923) stood at a strike price of 17,000. This is followed by a strike price of 17,500, which saw a total put option open interest of 89,499 contracts.

Following table shows the difference between call and put options at strike price near to max pain of 17500. 

Strike Price  

Open Interest (Call option)  

Open Interest (Put option)  

Diff(Put – Call)  

  

17,200.00  

6840  

59608  

52768  

17,300.00  

18282  

84759  

66477  

17,400.00  

32049  

83594  

51545  

17500  

92342  

89499  

-2843  

17,600.00  

89570  

28629  

-60941  

17,700.00  

93287  

18186  

-75101  

17,800.00  

126544  

36401  

-90143  

 

 

 

 

 

 

 

 

The Nifty 50 put call ratio (PCR) closed at 0.66 compared to 0.5  in the previous trading session. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

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Why is the world’s top public market investor betting on China over India?

by 5paisa Research Team 23/11/2021

BlackRock, the largest asset management firm in the world and known for its public market exposure, is snipping its investments in Indian equities as it is now seeing more attractive opportunities in China.

BlackRock is bullish on China due to attractive valuations amid expectations that policy hurdles will ease next year, according to a Bloomberg report.

“Valuations are key right now,” Belinda Boa, head of active investments for Asia Pacific at the world’s biggest asset manager, said at a briefing, according to the news agency.

“Because of the outperformance we’ve seen in India this year, on a relative basis, we are starting to take profits and become more positive on Chinese growth stocks," she added.

BlackRock has shaken its Asia-focused portfolios to have more neutral positions on China, up from underweight, and narrowed its underweight call on Internet services companies, Bloomberg said.

Chinese stocks, especially in the technology sector, have been battered in recent months due to regulatory screws that were tightened over the last one year in the country. At the same time, Indian stock market indices scaled new highs as the spectre of a third wave of Covid-19 seemed to recede in line with a widespread vaccination programme.

The Indian markets, which tended to correct in the past far swiftly led by offshore investors, had partly decoupled from that source of capital. This is because the huge domestic flow of capital into the stock market, driven by the positive wealth creation in the recent past and lack of confidence over other asset classes like real estate, has become a key force multiplier.

Meanwhile, Blackrock’s call to switch towards China comes as a time when the top Indian market indices have seen around 5% correction after hitting their peak in the past few weeks.

Most analysts believe Indian markets had run ahead of fundamentals and are now retracing steps as expected to bridge the gap.

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Chart Busters: Top trading set-ups to watch out for Wednesday

Chart Busters: Top trading set-ups to watch out for Wednesday
by 5paisa Research Team 24/11/2021

On Tuesday, the benchmark index Nifty has witnessed pullback rally of over 260 points. The index has gained 0.39% on Tuesday. The price action has formed bullish candle with carrying a lower low and a lower high. The Nifty Midcap 100 and Nifty Smallcap 100 as outperformed benchmark indices. The overall advance-decline was tilted in the favour of the advancers.

Here are the top trading set-ups to watch out for Wednesday.

Elgi Equipments: On Tuesday, the stock has given horizontal trendline breakout on daily chart. This breakout was supported by robust volume of more than six times of 50-days average volume. This indicates strong buying interest by market participants. The 50-days average volume was 3.39 lakh while on Tuesday the stock has registered a total volume of 22.03 lakh. Additionally, the stock has formed sizeable bullish candle on breakout day, which adds strength to the breakout.

Currently, the stock is trading above its short and long-term moving averages. These averages are in desired sequence, which suggests trend is strong. The leading indicator, 14-period daily RSI is currently quoting at 71.27 and it is in rising mode. The trend strength is absolutely extremely high as the ADX is above 35 and -DI is much below the +DI and ADX. The daily MACD stays bullish as it is trading above its zero line and signal line. The MACD histogram is suggesting pickup in upside momentum.

In a nutshell, the stock has registered a bullish pattern breakout along with volume confirmation. On the upside, the prior swing high of Rs 243 will act as minor resistance for stock. While on the downside, the 20-day EMA will act as strong support for the stock.

Mirza International: On November 04, 2021, the stock has given downward sloping trendline resistance breakout on daily chart and thereafter witnessed nearly 36% upside in just 7 trading sessions. After registering the high of Rs 94.40, the stock has witnessed minor throwback. During this throwback phase, the volume was not significant, which suggests its routine decline after a robust move.

On Tuesday, the stock has taken support near its 20-day EMA and recovered almost 12.61% from the days low. The price action has formed sizeable bullish candle along with relatively higher volume. Currently, the stock is comfortably placed above its key moving averages i.e. over 32% and 56% from 50-DMA & 200-DMA.

Interestingly, in the recent throwback phase, the leading indicator RSI has taken support near the 59-60 zone, which suggest super bullish range shift as per RSI range shift rules. The daily RSI is on verge of giving bullish crossover. The MACD is above the zero line and signal line. The MACD histogram suggests a bullish momentum. And most importantly, the MACD line crossed the prior swing highs.

Based on the above observations, we expect the stock to continue its upward movement and test levels of Rs 94.40 followed by Rs 108.20 in the medium term. On the downside, the Tuesday’s low of Rs 78.10 will act as support for the short-term.

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