Nifty 17026.45 (-2.91%)
Sensex 57107.15 (-2.87%)
Nifty Bank 36025.5 (-3.58%)
Nifty IT 34606.1 (-1.97%)
Nifty Financial Services 17614.7 (-3.56%)
Adani Ports 717.15 (-5.94%)
Asian Paints 3143.10 (-0.04%)
Axis Bank 661.75 (-2.67%)
B P C L 376.85 (-5.81%)
Bajaj Auto 3334.60 (-1.68%)
Bajaj Finance 6807.05 (-4.47%)
Bajaj Finserv 16682.55 (-3.95%)
Bharti Airtel 738.75 (-3.45%)
Britannia Inds. 3555.30 (-0.51%)
Cipla 966.70 (7.42%)
Coal India 155.90 (-1.67%)
Divis Lab. 4937.80 (2.88%)
Dr Reddys Labs 4750.90 (3.47%)
Eicher Motors 2433.90 (-3.43%)
Grasim Inds 1690.10 (-4.34%)
H D F C 2741.70 (-4.40%)
HCL Technologies 1110.05 (-1.31%)
HDFC Bank 1489.90 (-2.36%)
HDFC Life Insur. 670.65 (-2.64%)
Hero Motocorp 2529.40 (-2.52%)
Hind. Unilever 2335.10 (-0.59%)
Hindalco Inds. 417.00 (-6.72%)
I O C L 120.95 (-3.74%)
ICICI Bank 722.20 (-3.84%)
IndusInd Bank 901.80 (-5.99%)
Infosys 1691.65 (-1.79%)
ITC 224.00 (-3.16%)
JSW Steel 628.65 (-7.67%)
Kotak Mah. Bank 1964.30 (-3.48%)
Larsen & Toubro 1778.15 (-3.88%)
M & M 853.75 (-4.20%)
Maruti Suzuki 7170.50 (-5.31%)
Nestle India 19222.25 (0.23%)
NTPC 128.85 (-4.70%)
O N G C 147.10 (-5.16%)
Power Grid Corpn 202.00 (-1.10%)
Reliance Industr 2412.60 (-3.22%)
SBI Life Insuran 1130.35 (-2.51%)
Shree Cement 25945.80 (-2.72%)
St Bk of India 470.50 (-4.09%)
Sun Pharma.Inds. 767.30 (-1.99%)
Tata Consumer 766.70 (-5.09%)
Tata Motors 460.20 (-6.61%)
Tata Steel 1112.30 (-5.23%)
TCS 3446.85 (0.03%)
Tech Mahindra 1527.40 (-2.05%)
Titan Company 2292.30 (-4.40%)
UltraTech Cem. 7394.75 (-2.81%)
UPL 703.80 (-3.23%)
Wipro 621.45 (-2.40%)

Is Voltamp Transformers a momentum buy? Find out here

Is Voltamp Transformers a momentum buy? Find out here
by 5paisa Research Team 17/11/2021

Voltamp Transformers Limited is engaged in the manufacturing of electrical transformers and equipment. It is a smallcap company with a market cap of Rs 2,948 crore. The company has reported higher than industry average growth over the last five years while its market share has also increased to 2.35% from 1% over the same period. This certainly shows that the management is committed to capturing market share at a brisk pace, which is appreciated by the market participants and testimony of this is the strong up-move witnessed in the stock price.

The stock has performed exceptionally well by delivering returns of 62.24% YTD. On a YoY basis, the stock has jumped 80.77% and it has also gained 39.49% in a 3-months’ time frame. This shows that the stock is performing strongly not only for the longer term but also for a short duration and at the same time it is seen outperforming the Nifty500 index. The company recently announced its quarterly results which were good and the company management expects better performance in times to come.

The stock was into the consolidation phase in the last few months before rallying in November. Good volume has been recorded in the past few trading sessions and the stock has gone on to touch fresh all-time highs and has taken out its all-time high. It is in an extreme bullish mood as all the key moving averages are trending up and the stock price is above the key moving averages. The RSI at 77 suggests the strong momentum of the stock. The positive directional movement (+DMI) crossed the -DMI a few days back and currently it is well above it. This shows strong strength and true potential in the stock.

Considering the performance Voltamp Transformers has shown, we can expect the stock to continue its momentum on the higher side. The stock looks technically strong as traders can expect some good returns for the short term.

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Stocks attracting Fund Managers in October 2021

Stocks attracting Fund Managers in October 2021
by 5paisa Research Team 17/11/2021

Everyone is eager to know what the mutual fund managers bought and sold. But most importantly you want to know what they actually bought. So, let’s know which stocks attracted fund managers in October 2021.

In the month of October 2021, the financial sector and Information Technology ruled the roost when it comes to investment from mutual funds. These two sectors were on the top of the fund managers’ buying list.

Top 10 Companies among Large-Cap where MFs were Net Buyers in October 2021

Stock Name  

Sector  

Net Qty Bought  

Approx. Buy Value(In Rs. cr) *  

HCL Technologies Ltd.  

Technology  

25889145  

3136.86  

Tata Consultancy Services Ltd.  

Technology  

5380247  

1929.71  

ICICI Lombard General Insurance Company Ltd.  

Financials  

12288356  

1886.91  

Infosys Ltd.  

Technology  

9689951  

1619.7  

Axis Bank Ltd.  

Financials  

20024671  

1510.43  

ICICI Bank Ltd.  

Financials  

19896058  

1495.1  

HDFC Bank Ltd.  

Financials  

7557497  

1200.81  

Bharti Airtel Ltd.  

Media and Communications  

15695133  

1056.62  

FSN E-Commerce Ventures Ltd.  

Retail and Other Services  

6552513  

737.16  

Ultratech Cement Ltd.  

Construction  

923372  

694  

The above table shows that in the month of October 2021, among large-cap, mutual funds preferred the financial sector including banks. In the top ten, three are banks and one is an insurance company. The total approximate buying done in the financial sector in large-cap is Rs 8010 crore in the month of October 2021.

The trend is not different for Mid-cap stocks. Even mid-cap financials remain the favourite of mutual funds.

Top 10 Companies among Mid-Cap where MFs were Net Buyers in October 2021

Stock Name  

Sector  

Net Qty Bought  

Approx. Buy Value(In Rs. cr) *  

Zee Entertainment Enterprises Ltd.  

Media and Communications  

20488934  

618.92  

Aditya Birla Sun Life AMC Ltd.  

Financials  

6120242  

416.51  

Max Financial Services Ltd.  

Financials  

3849119  

382.58  

Bank Of Baroda  

Financials  

34033013  

305.02  

Emami Ltd.  

FMCG  

4293653  

237.28  

Manappuram Finance Ltd.  

Financials  

11886437  

224.03  

Indian Bank  

Financials  

14319582  

223.71  

Escorts Ltd.  

Automobile and Ancillaries  

1340334  

204.37  

ABB India Ltd.  

Capital Goods  

985858  

196.7  

The Federal Bank Ltd.  

Financials  

21167059  

192.36  

Top 10 Companies among Small-Cap where MFs were Net Buyers in October 2021

Stock Name  

Sector  

Net Qty Bought  

Approx. Buy Value(In Rs. cr) *  

Delta Corp Ltd.  

Miscellaneous  

8571074  

223.71  

Fino Payments Bank Ltd.  

Financials  

3646425  

210.4  

Gokaldas Exports Ltd.  

Textile  

10023606  

205.61  

City Union Bank Ltd.  

Financials  

11931202  

194.36  

Prince Pipes and Fittings Ltd.  

Consumer Durables  

2194894  

155.97  

The India Cements Ltd.  

Construction  

6405040  

130.15  

RBL Bank Ltd.  

Financials  

6649689  

123.5  

Sheela Foam Ltd.  

FMCG  

482470  

116.02  

Multi Commodity Exchange Of India Ltd.  

Financials  

548652  

92.24  

PCBL Ltd.  

Chemicals  

3161759  

76.99  

The intention of the above analysis is only to understand the activity of mutual funds and gauge the fund managers’ approach and it is by no means, a recommendation to buy or sell. It is always advisable to have a financial plan in place, which must be followed with discipline and investments in mutual funds being made to be based on your risk assessment.

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Explained: What are new SEBI proposals on IPO fundraising, anchor investors?

by 5paisa Research Team 17/11/2021

As India’s primary markets activity reaches unprecedented levels in terms of fundraising, the Securities and Exchange Board of India has proposed certain tweaks to existing regulations related to initial public offerings.

Before proposing these tweaks, the Primary Market Advisory Committee (PMAC) of SEBI had discussed these measures. The capital markets regulator is now seeking public comments on these proposals by the end of November. Here’s a quick look at the proposals.

What is the percentage limit on use of proceeds towards acquisitions?

SEBI has proposed that companies earmark a maximum 35% combined limit (including a 25% fund allocation for general corporate purposes) for companies looking to deploy the proceeds towards unidentified future acquisitions.

The regulator said it lately observed many companies, especially new-age technology companies, proposing their IPOs where an undisclosed sum was reserved for future mergers and acquisitions (M&A) without identifying them.

However, such a practice may lead to uncertainty and ambiguity. In other words, it may dilute the company’s real objective for going public. The regulator views these uncertainties increasing in nature where a major portion of capital in an IPO is utilised in fresh capital raising, it said in a consultation paper.

SEBI clarified that such limits may not be applicable where a company has identified a target company for an acquisition, and the objects are disclosed in IPO proposals.

The regulator says new-age technology companies are mostly asset-light organizations and may not require funds traditionally required by the companies for objectives such as investment for fixed assets or capital expenditure.

“The growth in such businesses comes from expanding into new micro-markets and adding or acquiring new customers, companies, technology etc. Accordingly, for primary issuance i.e. for funds raised through fresh issues, such new-age technology companies disclose objects in their offer documents under such heads as ‘Funding of Inorganic Growth Initiatives’, so as to cater to their needs,” SEBI said.

Is there a need to increase the lock-in period for anchor investors?

The regulator wants to review the duration of the lock-in period for anchor investors. It says that a longer lock-in will provide more confidence to other investors.

SEBI does not wish to introduce a strict lock-in duration. Instead, it has proposed that at least half the shares due for allotment in the anchor book be allotted to investors who agree to remain locked-in for at least 90 days.

At present, SEBI regulations have a 30-day lock-in for anchor investors from the allotment date.

“The concept of anchor investors was introduced to inspire confidence in the issue especially when such investors commit moneys upfront and thus provide an indication of price as well as improve the price discovery during IPO. Other investors may take cue based on the investment decisions of anchor investors,” SEBI said.

Should proceeds earmarked under general corporate purposes be monitored?

SEBI proposed that the issue proceeds earmarked under general corporate purposes may also be brought under monitoring. Further, the utilisation of proceeds towards such corporate initiatives may need to be disclosed in the quarterly monitoring agency report.

Under current regulations, a maximum of 25% of the fresh net proceeds from a public offering can be used for general corporate purposes. Also, there are no clear regulations that require any disclosures relating to deployment of funds earmarked for general corporate purposes.

SEBI said that companies are coming up with issues which are very large in size. With larger issue size, general corporate purpose amount also becomes very substantial. For instance, in a Rs 10,000 crore fresh issue, a company can have Rs 2,500 crore earmarked under general corporate purpose.

“Given the large size of IPOs, there is a need to provide adequate information about the utilisation and monitoring of such a large portion of issue proceeds, earmarked under general corporate purposes,” SEBI said.

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Top trading ideas from the Chemical sector

Top trading ideas from the Chemical sector
by 5paisa Research Team 17/11/2021

The chemical sector includes a variety of businesses like Agrochemicals, Pesticides and Fertilizers, Specialty chemicals, etc.

The chemical sector stocks came into the limelight since the beginning of the pandemic. Many stocks have more than doubled from their respectively lower levels and the sector had witnessed nothing less than a fairy tale kind of story.

The chemical sector includes a variety of businesses like Agrochemicals, Pesticides and Fertilizers, Specialty chemicals, etc.

In this article, we shall analyze the performance of the sector leaders from a short to medium-term perspective. We have included United Phosphorous Limited (UPL), SRF Limited and Aarti industries for the analysis for the same.

First, let’s compare the performance of these stocks.

UPL: 63.8% YTD and 0.43% 3-month performance (CMP- 761.65)

SRF: 94.12% YTD and 18.72% 3-month performance (CMP- 2164.80)

Aarti Industries: 59.76% YTD and 3.63% 3-month performance (CMP- 985.15)

We observe that SRF has been the top performer for the medium term as well as for the short term. These chemical stocks were going through the correction phase after hitting their respective all-time high. UPL is down by 11%, SRF is down by 14.2% while Aarti Industries is down 15.2% from its all-time high. Since then, the stocks look for bottoming out and are on a verge of starting their fresh upward journey. Surely, these stocks have a lot to catch up on.

The stocks are trading at value-buy price and one can also think about investing in such high-quality stocks.

On November 17, UPL is currently down by almost 3% and SRF is down by 1.17% while Aarti Industries is up by 2.85%.

UPL and SRF are currently taking support of its 50 and 20-DMA while Aarti industries look to test its short-term resistance of 20-DMA. The RSI of UPL, SRF and Aarti industries is at 56,49, and 51 respectively. Decent volumes have been witnessed in these stocks since a few trading sessions. The stocks look for fresh triggers as they look to continue their upward journey. We do not see any signs of huge downfall and one can expect good returns percentage for the short to medium term. Market participants should closely keep an eye on these stocks as they look to find the momentum.

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Technical analysis: Prince Pipes breaks out from consolidation

Technical analysis: Prince Pipes breaks out from consolidation
by 5paisa Research Team 17/11/2021

Prince Pipes breaks out from a multi-week consolidation. Read on to find out more.  

Prince Pipes & Fittings Limited is a multi polymer manufacturer and provides integrated piping solutions. It came into existence in 1987 and in the initial stages used to only manufacture PVC products. However, it eventually began manufacturing polymer piping solutions, and now mainly manufactures four types of polymers namely CPVC, UPVC, HDPE and PPR. 

In December 2019, Prince Pipes came out with an Initial Public Offering (IPO) and raised Rs 500 crore of which 50% was Offer for Sale (OFS) and 50% was a fresh issue. The offer price was Rs 178 per equity share but failed to provide any listing gains to its investors, as on the listing day, it made a high of 174.3 and closed at 163.5. However, over the period it has had a spectacular journey as the stock is currently trading at 847. 

Having said that, the stock began to rally from June 2020 and finally took a breather in May 2021 after making a high of 790.4. Since then, the stock has been moving into consolidation. In fact, it also made a low of 592.25 in August 2021. However, the stock gave a breakout on weekly charts last week. On lower time frames, the stock did give a pullback and again began to move in a consolidation. The immediate support for the stock is placed at 825.6 and resistance at 866.45 followed by 895.05. 

The Relative Strength Index (RSI) is trading in the overbought zone at 74.47, whereas it is still above its 9-Day Exponential Moving Average (EMA). Moving Average Convergence Divergence (MACD) is showing positive signs as it gave a positive crossover on the breakout in the positive territory. Bollinger band, on the other hand, is showing signs of a possible pullback as the price is currently trading above its upper band. 

At the time of writing, the stock was trading at 848.6 levels. 

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All about Value Funds!

All about Value Funds!
by 5paisa Research Team 17/11/2021

Value funds invest in any stocks by adopting a strategy that has less market value and high intrinsic value.

We live in a world where an individual has various options to park his funds but presently, individuals are in a dilemma where to invest their hard-earned money and receive optimal benefits from the same. Mutual funds offer various schemes where every type of individual can invest his corpus such as equity-oriented schemes, non-equity-oriented funds i.e., debt funds, a combination of both equity and non-equity-oriented funds i.e., hybrid funds as well as solution-oriented funds for long term goals such as retirement and children’s raising expenses. Equity-oriented funds are further divided into 11 sub-categories such as value funds, contra funds, focussed funds, and many more.

We are going to discuss value funds in this article.

Value funds are equity-oriented mutual funds, which invest in the stocks of the company that has ‘value’. What is meant by value? There are various ways in which value is defined. To value the company's stock, various metrics are used like price-to-earnings ratio (P/E ratio), price-to-book ratio (P/B ratio), dividend yield, and free cash flow. So, value funds invest in stocks that score relatively lower in the above ratio. When a fund manager adopts a value investing strategy, he looks for stocks that are undervalued or may trade for less than their intrinsic value. These stocks have the potential to grow in the future. When the intrinsic value of any stock or company is more than its market value it is known as value. Hence, fund managers of value funds search, analyse and then invest in such value companies.

Things to consider before investing:

Risk: As these funds are equity-oriented, they are risky but less than growth funds. These funds are not for the risk-averse investors but for those, who are more suitable for investors that are ready to take risks. These funds face market risk and volatility like any other equity fund. Value funds tend to outperform during bear markets.

Investment horizon: Fund managers invest in stocks that are undervalued and can take some time to deliver returns. So, investors, who are willing to invest for a longer period, should consider investing in these funds. Investors should at least have an investment horizon of five years. This will help investors to receive optimal returns.

Diversification: Fund managers invest in stocks of large-cap as well as mid-cap companies and also, pool a corpus of investors in various sectors, which help investors to reap optimum benefit even if any particular sector is not performing well.

Returns: Fund managers analyse and forecast the performance of the undervalued companies in the market and invest the capital of investors in companies having higher potential. Investors, who want regular investments, should consider investing in these funds. Dividends are paid periodically, depending upon the performance of the fund. These funds offer steady returns over a longer period. Due to the lower cost of these funds, they are quite cheaper than growth funds.

Taxability: As these funds are equity-oriented, they will be taxed accordingly-

Short-term capital gains (STCG): If capital gains arise within 12 months, then they will be taxed as per short-term capital gains at the rate of 15%.

Long-term capital gains (LTCG): If capital gains are arising after 1 year, then they will be exempted up to Rs 1 lakh while above Rs 1 lakh, it will be taxed at the rate of 10% without indexation.

The following table depicts the top five value funds in India based on a one-year return along with their AUM: 

Fund Name  

1-Year Return (%)  

AUM (in crores)  

IDFC Sterling Value Fund  

85.77482  

4,395.72  

Templeton India Value Fund  

75.01647  

645.64  

Nippon India Value Fund  

61.32742  

4,505.66  

ICICI Prudential Value Discovery Fund  

59.36352  

23,219.02  

Aditya Birla Sun Life Pure Value Fund  

59.23967  

4,384.20  

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