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Showing posts from April, 2025

HDFC AMC : Dividend

 HDFC AMC : Dividend Dividend Growth of HDFC AMC : 23.6% CAGR Solid business model Financial ratio is good

Nippon Life India Asset Management Ltd - Dividend

 Nippon Life India Asset Management Ltd - Dividend analysis Dividend CAGR growth of last 5 years - 23.66% Business model solid Financial metric is also good

ETF Risks for Large Investors in India: Tracking Error & Liquidity

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"Investing ₹50L–₹1Cr in ETFs? Learn how tracking error, low liquidity & NAV disparity can cost big. Smart tips to avoid slippage and protect returns.  " You're absolutely right—ETFs (Exchange Traded Funds) can look great on paper, but real-world performance often differs due to a few crucial issues, especially when large amounts (like ₹50 lakh to ₹1 crore) are involved. Let's break down Tracking Error, Liquidity Issues, Price Discovery, and Disparity in the context of low average daily volume , and how this can severely impact investors with larger capital: 1. Tracking Error Definition : It’s the difference between the ETF's returns and its benchmark index. Why it matters : When you're investing ₹50 lakh or more, a small tracking error of even 1-2% annually can mean a loss of ₹50,000 to ₹1 lakh+ versus the index. Causes : Fund manager holding cash instead of being fully invested. Expense ratio, rebalancing cost, or delay in replicating index c...

Bank and NBFC Stock Analysis FAQ: Key Ratios, Valuation, NPA

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"Get clear answers to your top questions about analyzing bank and NBFC stocks. Learn key financial ratios like NIM, ROE, NPA, and Price-to-Book, plus valuation tips for smarter investing." Analyzing Bank and NBFC stocks involves evaluating specific financial ratios and metrics that reflect their financial health, profitability, and risk exposure. Here's a structured framework to analyze them: 1. Key Financial Ratios a. Profitability Ratios Net Interest Margin (NIM) Formula: (Net Interest Income / Average Earning Assets) Indicates the efficiency of core lending operations. Return on Assets (ROA) Formula: Net Profit / Total Assets Measures how efficiently a company is using its assets to generate profit. Return on Equity (ROE) Formula: Net Profit / Shareholder's Equity Indicates how well the bank is using shareholder money. b. Valuation Metrics Price to Book Value (P/BV) Formula: Market Price / Book Value per Share U...

Complete Guide to Nifty Indices: Understanding NSE’s Equity Index Methodology (2025)

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  The Indian stock market, through the National Stock Exchange (NSE) , offers various equity indices. These indices help track market movements, sectors, themes, and strategies. NSE Indices Limited (formerly IISL) develops and manages them. This guide explains how these indices are structured, how stocks are selected, how reviews happen, and the key indices that shape India's equity landscape. What Are Nifty Indices? Nifty indices are rule-based benchmarks. They cover different parts of the Indian stock market like: Broad market (large-, mid-, small-, and micro-cap) Sectoral (industry-specific) Thematic (focused on trends) Strategy-based (factor-driven) These indices are used by retail investors, mutual funds, and institutions to track performance and build portfolios. 1. Broad Market Indices These indices cover companies of various sizes: Nifty 500 : Top 500 companies by full market capitalization. Nifty 100 : Top 100 large-cap stocks from Nifty 500. ...

Fibonacci Retracement and Extension Explained: Powerful Tools for Stock Market Analysis

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Fibonacci Retracement and Fibonacci Extension tools—two popular technical analysis tools used by stock market traders to identify support and resistance levels , as well as price targets . Fibonacci Retracement Tool Purpose: To identify possible reversal levels (support/resistance) within the current trend. How It Works: Based on the idea that markets retrace a predictable portion of a move before continuing. The key retracement levels: 23.6%, 38.2%, 50%, 61.8%, 78.6% You draw this tool by selecting a significant high and low on a price chart. Example: Stock moves from ₹100 to ₹150 (uptrend) Using Fibonacci retracement, traders look for the price to possibly pull back to around: 38.2% retracement = ₹131.90 50% retracement = ₹125 61.8% retracement = ₹118.10 These levels may act as support before the price resumes its uptrend. Also read: VPVR indicator for support and resistance identification Fibonacci Extension Tool Purpose: To identify ...