Niraj Karnani News Today

Indias first $1 trillion company by market capitalisation (m­­­­cap) is achievable by 2032 and HDFC Bank and Reliance Industries (RIL) are seen as lead contenders, ICICI Securities said in a note on Monday. To achieve this, the shares of both the firms will have to appreciate at least 20 per cent annually for the next decade. ICICI Secu­rities believes this is possible if Indias gross domestic product (GDP) growth accelerates to 9 per cent per annum and corporate profitability cycle peaks. ...

Notwithstanding the risk involved, analysts are upbeat on micro-cap investing as India remains in a firm bull market. Moreover, these stocks are available at relatively cheaper valuations compared to large, mid and small caps, assuring alpha returns. With a market-capitalisation (market-cap) of up to Rs 10,000 crore, micro-cap stocks are outside the purview of Nifty 500 stocks, and are ranked from 501 to 750 in the market-cap ladder.

Thus far in calendar year 2023, 165, or 66 per cent, of 250 micro-cap stocks have generated positive returns

Foreign portfolio investors (FPI) flows have turned positive on a trailing 12-month (TTM) basis for the first time since December 2021. Thanks to robust inflows over the past three months, the TTM overseas flows into domestic equities stand at over $7.3 billion-the most since November 2021. This has helped propel one-year Nifty returns to 12 per cent.

Notwithstanding sharp volatility in March, mutual fund (MF) investors didnt fight shy of investing in riskier small-cap-oriented schemes. Inflows into small-cap funds were not just the highest in absolute terms, they were also the maximum as a proportion of assets under management (AUM) among all market capitalisation (m-cap)-oriented categories. Investors funnelled Rs 2,430 crore down small-cap funds - 1.8 per cent of their AUM of Rs 1.33 trillion.

In India, the sentiment is much better and there could be a lull in the flow of money from equity to fixed income instruments. Wealthy clients are said to be a bit more receptive to mid-cap and small-cap ideas