AKG weekly charts - Issue #131
This newsletter is a weekly selection of 10 charts hand-picked across the internet which pertains to our investment strategy and bring an updated insight and perspective.
Summary of financial markets in last week here.
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Jan’24 review of our equity research strategies - Wealth Compounders, Emerging leaders & Special Situation
[1] China's cut rates on 20 Feb by 25bps to provide economic Boost. State-owned banks will see a more significant impact than smaller peers because of their proportionately higher exposures to mortgages and infrastructure loans, which usually reference the five-year LPR.
[2] In FY23 Index options were 97.7% of the derivative segment turnover, while stock futures were just 0.5%. Obviously, the systemic risk is now minimal. The potential losses are very well defined and adequately provided for through stringent margins [See note here]
[3] Self-explanatory. The connundrum which refuse to entangle!
[4] YTD2024, the benchmark Nifty50 has been supported mostly by the energy, healthcare, and auto sectors; while the heavyweight financials and consumers have massively underperformed. Though there are no significant triggers for a strong recovery in the financial and consumer sectors, a technical upmove cannot be ruled. This might result in a Nifty50 spurt before a correction sets in.
[5] Nikkein regain ATHs again after 1987 but based on global valuation metrics, they could still have room to run!
[6] Chinese Stocks are trading near their biggest discount in AT LEAST the last 15 years relative to Emerging Markets. There is little reason for FIIs to return to India in near term given the valuation differentials.
[7] When 10yr yields dropped from >5% to <4% through November-Dec Non-Profitable Tech meaningfully outperformed Big Tech. That’s now fully reversed as yields have moved higher this year.
[8] FPI flow trends across EMs and DMs
Source: Bloomberg, I-Sec research
Note: China data is not available from Jan’24.
[9] Aggregate MF sectoral active flows since Q3FY23
Source: ACEMF, I-Sec research
Note: MF sectoral flows are based on change in number of shares compiled using ACE MF, and average closing prices during the period.
[10] Steel Industry classification. Chose your stock!
(fwd, credits as acknowledged)
Disclaimer:
This newsletter is for information and educational purposes only. In this material, Amit Kumar Gupta (SEBI registered Research Analyst, INH100009327) has used information that is publicly available and is believed to be from reliable sources. While utmost care has been exercised, the author does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers, before acting on any information herein should make their own investigation & seek appropriate professional advice. Any sector(s)/ stock(s)/ issuer(s) mentioned do not constitute any recommendation and the RA may or may not have any future or existing position in these. All opinions/ figures/ charts/ graphs are as on date of publishing (or as at mentioned date) and are subject to change without notice. Any logos used may be trademarks™ or registered® trademarks of their respective holders, our usage does not imply any affiliation with or endorsement by them. Past performance on charts may or may not be sustained in the future and should not be used as a basis for comparison to infer any investment ideas