Nifty 17196.7 (-1.18%)
Sensex 57696.46 (-1.31%)
Nifty Bank 36197.15 (-0.85%)
Nifty IT 35848.05 (-0.86%)
Nifty Financial Services 17779.5 (-1.13%)
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%)
Bajaj Auto 3287.85 (-1.22%)
Bajaj Finance 7069.25 (-1.55%)
Bajaj Finserv 17488.70 (-1.52%)
Bharti Airtel 718.35 (-1.94%)
Britannia Inds. 3553.75 (-0.69%)
Cipla 912.05 (-1.00%)
Coal India 159.75 (0.28%)
Divis Lab. 4757.05 (-0.42%)
Dr Reddys Labs 4596.50 (-1.42%)
Eicher Motors 2455.55 (0.16%)
Grasim Inds 1703.90 (-1.16%)
H D F C 2771.65 (-1.29%)
HCL Technologies 1171.40 (-1.12%)
HDFC Bank 1513.55 (-0.80%)
HDFC Life Insur. 690.95 (-2.03%)
Hero Motocorp 2462.45 (-0.41%)
Hind. Unilever 2343.65 (-1.66%)
Hindalco Inds. 424.65 (-1.72%)
I O C L 122.20 (1.28%)
ICICI Bank 716.30 (-0.84%)
IndusInd Bank 951.15 (0.59%)
Infosys 1735.55 (-0.73%)
ITC 221.65 (-1.69%)
JSW Steel 644.55 (-0.34%)
Kotak Mah. Bank 1914.20 (-2.55%)
Larsen & Toubro 1801.25 (0.67%)
M & M 836.95 (-1.48%)
Maruti Suzuki 7208.70 (-1.59%)
Nestle India 19321.35 (-0.93%)
NTPC 127.00 (-1.32%)
O N G C 145.90 (1.32%)
Power Grid Corpn 206.10 (-3.92%)
Reliance Industr 2408.25 (-3.00%)
SBI Life Insuran 1165.95 (-1.86%)
Shree Cement 25914.05 (-1.43%)
St Bk of India 473.15 (-0.81%)
Sun Pharma.Inds. 751.80 (-1.89%)
Tata Consumer 774.30 (0.14%)
Tata Motors 480.10 (0.21%)
Tata Steel 1118.00 (0.50%)
TCS 3640.45 (-0.07%)
Tech Mahindra 1593.30 (-2.23%)
Titan Company 2369.25 (-0.72%)
UltraTech Cem. 7332.45 (0.13%)
UPL 712.75 (2.08%)
Wipro 640.75 (-0.94%)

Meet the dean of valuation - Aswath Damodaran

Meet the dean of valuation - Aswath Damodaran
by 5paisa Research Team 25/10/2021

Owing to his deep knowledge and expertise on valuation, Aswath Damodaran has been christened as the "Dean of Valuation".

Aswath Damodaran is a professor of finance at the Stern School of Business at New York University, where he teaches corporate finance and equity valuation. He has written over 20 books to date that includes, Applied Corporate Finance, Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, Narrative and Numbers: The Value of Stories in Business to name a few. 

He has won the Richard L Rosenthal Award for Innovation in Investment Management and Corporate Finance and also the Herbert Simon Award. Damodaran regularly blogs about his views on the ongoing developments in the market on "Musings on Markets", which is a popular website on investing.

The secret to being a successful investor 

Aswath Damodaran strongly believes that humility is the single most important characteristic required to be a successful investor. In his latest webinar- The Illusion of Smart Money, he classified the investors into two groups- the humble and the arrogant. The humble investors are the ones who recognized success as a function of luck as well as skill and failure as a part of investing and an occasion for learning. On the other hand, he described the arrogant investors like the ones who viewed success as a function of their skill alone and took failure as a humiliation. Furthermore, if given a choice to pick someone to manage his money, he would select someone humble, since he believes that humble investors are less likely to overpromise and overcommit.

Talking about the rise of crypto assets, in an interview with CNBC TV18, he called cryptocurrency the millennial gold. He further revealed that he is not a market-timer and that he is still invested in stocks that he believes can deliver reasonable returns.

The Zomato IPO pricing debate

While talking about Zomato IPO, in an interview with CNBC TV18, Damodaran advises staying away from metrics that scale to current earnings, irrespective of the company because it will lead to absurd valuations. The reason is that investors buy for the future potential of the company, not the present and that future potential should seem reasonable. Speaking about Zomato, he said that while the company leads the online food delivery market, which holds great growth potential, two important factors need to be considered for tapping into this potential. Firstly, the growth of the Indian economy, as the rise in demand for online food delivery requires a rise in disposable income and secondly, the change in food habits of Indians.

Upcoming IPOs

Commenting on the upcoming IPOs of Paytm and Ola, Aswath Damodaran would prefer to invest in Paytm IPO over the Ola IPO. In an interview with Business Today, the professor believed that the former has potential as the financial services and payment processing business is huge. On the other hand, the ride-sharing business is a catastrophe globally and there is no stickiness in the market. Hence, if he has a choice, he would prefer to invest in Paytm IPO, provided that it is priced reasonably.

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These stocks are likely to be in focus on October 26

These stocks are likely to be in focus on October 26
by 5paisa Research Team 25/10/2021

The BSE Sensex with the help of banking majors managed to close in green on Monday. SBI, Axis Bank and ICICI Bank made afresh 52 weeks high on Monday even as the Nifty Bank index traded at all-time highs. Bank of Baroda gained by more than 2% in today's trade.

ICICI Banks, Axis Bank, ONGC, MRPL, Shopperstop, KEC, PVR, Torrent Pharma, Quess Corp, S H Kelkar & Company, City Union Bank, Blue Star, Minda Industries and Chennai Petro will be in focus on Tuesday, October 26.

Watch out for these stocks on Tuesday -

ICICI Bank: The shares of ICICI Bank gained by more than 10% on Monday. The stock of ICICI Bank displayed a gap up opening and managed to outperform with a huge spurt in volumes. The banking heavyweight managed to close at its all-time highs on Monday and will be in focus on Tuesday.

Axis Bank: The shares of Axis Bank managed to close at an all-time high on Monday. The shares gained by more than 3% on Monday with a spurt in volumes by 3 times. Axis Bank will be watched on Tuesday by the momentum traders and investors.

ONGC: The shares of ONGC after a gap up opening continued to build their gains on Monday. The share price of ONGC jumped higher by 3%. The shares of ONGC gained by 2.77% with a spurt in volume of 1.58 times. ONGC may trade with a bullish sentiment on Tuesday, October 26. Keep a watch on this stock.

Price Volume Breakout: MRPL, Shopperstop, KEC, PVR, Torrent Pharma, Quess Corp, S H Kelkar & Company, City Union Bank, Blue Star, Minda Industries and Chennai Petro are some of the BSE 500 index constituents that displayed a price volume breakout in the Monday trading session. These stocks will be on the radar of bulls on Tuesday.

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Penny Stock Update: These stocks gained up to 9.85% on Monday

Penny Stock Update: These stocks gained up to 9.85% on Monday
by 5paisa Research Team 25/10/2021

Today equity market was very volatile. BSE BANKEX is the top gainer while BSE Realty is the top loser in today’s trade.

After, a negative closing last week, the Indian equity market started this week trading on a very volatile note. The market was swinging between negative and positive for the entire trading session. Today, the majority of sectoral indices have closed in negative, while, some sectoral indices closed with green mark.

Nifty 50 and BSE Sensex are up by 10.50 points i.e., 0.06% and 145.43 points i.e., 0.24% in today’s trade. Stocks pulling the BSE Sensex index up are Axis bank, SBI, Tech Mahindra, Dr Reddy’s Lab and M&M. Whereas, stocks that dragged the BSE Sensex down are HDFC Bank, Bajaj Finserv, Reliance, HCL Tech and Asian Paints. Moreover, stocks pulling Nifty 50 up are ICICI Bank, Axis Bank, JSW Steel, SBI and ONGC. While, Stocks pulling Nifty 50 down are HDFC Bank, Reliance, Infosys and Bajaj Finance.

In today’s trade, S&P BSE BANKEX, S&P BSE Private Banks Index and S&P BSE Finance were top gainers which closed up positive. BSE BANKEX index consisting of stocks such as ICICI Bank, City Union Bank, Axis Bank and SBI are top gainers gaining up to 10.80%.

Today majority of indices closed in red mark among which top losers are S&P BSE Realty, S&P BSE Consumer Discretionary Goods & Services, S&P BSE Smallcap and S&P 150 MidCap Index. BSE Realty index that consists of stocks such as Sunteck Realty Ltd, Indiabulls Real Estate Ltd, Prestige Estates Projects Ltd and Sobha Ltd are top losers, shedding up to 7.49%.

Here is the list of penny stock that gained up to 8% on a closing basis on Monday, 25th October 2021:

Sr No.    

Stock    

LTP     

Price Gain%    

1.    

Mandhana Retail Ventures Ltd  

18.40  

9.85%  

2.    

Dsj Keep Learning Ord Shs  

1.05  

5.00%  

3.    

Rohit Ferro-Tech Limited  

14.80  

4.96%  

4.    

Andhra Cements Ltd  

17.00  

4.94%  

5.    

Digicontent Ltd  

11.70  

4.93%  

6.    

Shriram EPC Limited  

6.45  

4.88%  

7.    

Zenith Steel Pipes & Industries Ltd  

1.10  

4.76%  

8.    

SPML Infra Ltd  

11.10  

4.72%  

9.    

Ravikumar Distilleries Limited  

13.35  

4.71%  

10.    

Blue Coast Hotels Ltd  

5.65  

4.63%  

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HDFC AMC, Aditya Birla Sun Life AMC post contrasting Q2 results but both stocks fall

by 5paisa Research Team 25/10/2021

HDFC Asset Management Company Ltd and rival Aditya Birla Sun Life AMC Ltd reported contrasting quarterly results on Monday, but shares of both mutual fund houses extended losses.

HDFC AMC posted a marginal 1.7% increase in its net profit for the second quarter ended September to Rs 344.38 crore from Rs 338 crore a year earlier. This was, however, lower than the Rs 345.45 crore number registered during the previous three months.

Revenue from operations jumped 19% from a year earlier to Rs 542.33 crore, India’s third-largest fund house by assets under management said.

Second-quarter profit was dragged down mainly by an almost 50% in staff costs to nearly Rs 80 crore.

However, net profit for the first six months of the current financial year was 7.8% higher from a year earlier while the top line was 14.6% higher.

Still, the tepid quarterly earnings disappointed investors. Shares of HDFC AMC fell 0.5% to close at Rs 2,768 apiece. The shares have lost almost 18% since touching a one-year high in early September.

Aditya Birla Sun Life AMC Q2

The company, a joint venture of Aditya Birla Group and Sun Life Financial Inc of Canada, reported a 38% jump in profit to Rs 173.1 crore for the July-September quarter from Rs 125.4 crore in the year-ago period.

Total revenue rose 28% to Rs 372.2 crore in the period under review from Rs 291 crore in the quarter ended September 30, 2020.

This is the first time the company is declaring quarterly results as it went public only earlier this month. The IPO was a complete offer for sale by Aditya Birla Capital and Sun Life. The total IPO size was Rs 2,768.25 crore. It was subscribed 5.25 times.

Shares of the company fell 1% on Monday to close at Rs 651.75 apiece. The shares are now down 8.5% from their initial public offering price of Rs 712 apiece.

Aditya Birla Sun Life AMC is India’s fourth-largest fund house with an AUM of Rs 2.75 trillion at the end of June 2021. In addition, it also had Rs 450 crore in assets under domestic fund of funds, according to the Association of Mutual Funds in India. HDFC AMC is ranked third with an AUM of Rs 4.2 trillion.

Future plans

HDFC AMC seems to be going long on the passive fund segment. Earlier this month, it filed papers with the Securities and Exchange Board of India to launch nine passive funds including exchange-traded funds.

Passive funds have been gaining favour among investors, who are looking for low-cost options, as most active funds have failed to comprehensively beat benchmark indices in the last few years.

Aditya Birla Sun Life AMC managing director and CEO A Balasubramanian said the company is focusing on increasing its overall assets under management by growing across different asset categories.

“Our sustained growth in SIP (systematic investment plan) book, equity AUM, B-30 assets, folio count and differentiated product offerings have contributed towards our growth,” he said.

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

Chart Busters: Top trading set-ups to watch out for Tuesday
by 5paisa Research Team 26/10/2021

The benchmark index Nifty opened with an upside gap and thereafter rapidly gave up its opening gain and lost nearly 273 points from the day's high. However, the index has taken support near the 20-day EMA level and recovered almost 167 points. The index has ended at a 18135.85 level with a gain of 10.50 points. The price has action has formed bearish candle with long lower shadow. The major contribution was seen from banking stocks. The banking benchmark index Bank Nifty has gained over 2%.

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

Gland Pharma: After registering the high of Rs 4350, the stock has witnessed correction. The correction is halted near the 38.2% Fibonacci retracement level of its prior upward move (Rs 1700-Rs 4350) level. In the last three trading sessions, the stock has outperformed the benchmark indices and formed bullish candles. On Thursday, the stock has formed a spinning bottom candlestick pattern followed by a bullish candle and on Monday, the stock has formed a hammer candlestick pattern. Interestingly, on the weekly chart also the stock has formed a hammer candlestick pattern. The long lower shadow of the candle indicates the emergence of buying interest near trendline support. Further, on Monday, the volume spurt was seen in stock, which indicates that it is accumulated by smart investors at a lower level.

The momentum indicators and oscillators are also supporting the overall bullish chart structure. The leading indicator, 14-period daily RSI is currently quoting at 45.83 level. The daily RSI has given positive crossover and it is in rising mode. The fast stochastic is also trading above its slow stochastic line.

Going ahead, in case the stock sustains above its 20-day EMA on a closing basis, it can give some positive momentum going forward. On the downside, today's low of Rs 3312.15 will act as strong support for the stock.

Home First Finance Company India: After registering the high of Rs 691.80, the stock has witnessed minor correction along with low volume. The correction is halted near the 61.8% Fibonacci retracement level of its prior upward move (Rs 535.30-Rs 691.80). On Monday, the stock has formed a bullish candle with a long lower shadow, which indicates buying interest near the support zone. Since the last two trading sessions, the volumes recorded were above the 50-days average, which is a sign of accumulation.

Currently, the stock is trading above its short and long-term moving averages. These averages are in the rising mode, which is a bullish sign. The leading indicator, 14-period daily RSI has given positive crossover and it is in rising mode. The daily stochastic has also given positive crossover. The daily MACD stays bullish as it is trading above its zero line and signal line.

Considering the robust technical structure of the stock we believe it is likely to touch new highs and hence one can accumulate this stock. On the downside, the 20-day EMA is likely to act as strong support for the stock, which is currently quoting at Rs 625 level.

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Cues from the F&O market for Tuesday, October 26

Cues from the F&O market for Tuesday, October 26
by 5paisa Research Team 26/10/2021

The Nifty50 yesterday barely managed to close in green and was volatile for the entire day. At one point in time, it was trading below the 18000 mark, however, at the time of close, it was up by 10 points. Fresh put writing at 17500, as well as 18000, pushed the market down.

Highest put writing was seen at strike price 17,600 (11,361 contracts added on October 25), followed by 17,400 (11,235 lakh contracts added on October 25), while there was put unwinding at strike price 16,000 (8519 contracts shed), followed by 18,200 (8280 contracts shed).

The highest total put open interest of 81062 contracts stood at strike price 18,000, which will act as a crucial base for the market in the October series. This is followed by strike price 17500, which saw a total put option of 78,776 contracts, while strike price 17,000 had 74,779 contracts in open interest.

On the call options front, maximum open interest was at strike price 19000, which stood as a strong resistance. Total call open interest of 141743 contracts stood at a strike price of 19,000. Call writing was seen at strike prices of 18,900 and 18,600. Total open interest for the strike price of 18,900 and 18,600 stood at 70598 and 82820 respectively.

The Nifty 50 put call ratio (PCR) closed at 0.64. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish.

Following table shows the participant wise action of key players on the index options front.

   

Index Put Options  

Client Type  

Change of OI*  

% Change of OI*  

Oct 25 2021  

Oct 22 2021  

Oct 21 2021  

Client  

68753  

-19.34%  

-286667  

-355420  

-338375  

Pro  

-63869  

-221.97%  

-35095  

28774  

18590  

DII  

-4745  

-6.88%  

64190  

68935  

77118  

FII  

-139  

-0.05%  

257572  

257711  

242667  

*Change from Previous Day  

   

   

   

   

   

   

   

Index Call Options  

Client Type  

Change of OI*  

% Change of OI*  

Oct 22 2021  

Oct 21 2021  

Oct 20 2021  

Client  

32985  

48.66%  

100769  

67784  

-14875  

Pro  

-45587  

31.31%  

-191180  

-145593  

-90785  

DII  

0  

0.00%  

401  

401  

401  

FII  

12602  

16.28%  

90010  

77408  

105260  

*Change from Previous Day  

   

   

   

   

   

  

   

Net Change in Open Interest  

Client Type  

Change of OI*  

% Change of OI*  

Oct 22 2021  

Oct 21 2021  

Oct 20 2021  

Client  

-35768  

-8.45%  

387436  

423204  

323500  

Pro  

18282  

-10.48%  

-156085  

-174367  

-109375  

DII  

4745  

-6.92%  

-63789  

-68534  

-76717  

FII  

12741  

-7.07%  

-167562  

-180303  

-137407  

*Change from Previous Day 

   

   

   

   

   

 

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