Upbeat on Stocks, Yet Staying Vigilant

Following a lacklustre FY23, the initial months of the new financial year have presented an encouraging outlook for the broader market. Both the Small-Cap and Mid-Cap indices have exhibited promising returns in the mid-teens, surpassing the performance of the Large-Cap index, which remained confined to single-digit gains. Upon analysing the indices data, it shows that constituents of the Small Cap 250 index achieved an impressive average return of 20 per cent, while the Mid Cap 150 index constituents recorded a respectable average return of 15 per cent. Some of the constituents haves generated return of more than 50 per cent.[EasyDNNnews:PaidContentStart]
 

Another notable observation is that a substantial proportion of the companies are within indices that have delivered positive returns. During this period, an impressive 92 per cent of small-cap companies and 88 per cent of mid-cap companies have yielded positive returns. Investors who heeded our earlier prediction (as outlined in ‘Broader Markets Stealing the Show’, Volume 38, Issue No. 11) and allocated resources to mid-cap and small-cap companies can now bask in the rewards of our foresight.
 

We identified certain macroeconomic changes that signalled a turning tide and a tilt in favour for the broader market, and it brings us immense satisfaction to see our predictions materialise and investors making the right investment decision. Now, to enhance our readers’ knowledge and provide valuable guidance, we are coming out with a special issue this time. Our focus is on the analysis of the top 1,000 companies listed in India, taking into account their market capitalisation. These selected companies collectively represent more than 90 per cent of the total market capitalisation of all the listed companies in India, making it a comprehensive coverage for analysis.
 

We have meticulously categorised these companies into different sectors and industries, allowing for a thorough examination of each sector. Our special issue encompasses a comprehensive overview of 26 sectors, providing readers with in-depth knowledge about the intricacies and key players within each sector. Furthermore, we have conducted a detailed analysis of various financial parameters pertaining to these companies. By delving into the financial performance and metrics of each company, we aim to provide our readers with valuable insights into their operations, growth potential and overall financial health.
 

We believe that the extensive sector-wise analysis, coupled with the examination of financial parameters, will serve as a valuable resource for you to zero down on probable investment avenues. Our cover story this time is on constructing a resilient portfolio that aligns with individual risk profiles. Within this article, you will discover three distinct portfolios tailored to cater to the diverse needs of investors. Our research team has diligently analysed historical data to provide readers with an approximate understanding of the potential returns and associated risks when implementing any of the portfolios recommended in our cover story
 

By delving into these portfolios, readers can gain valuable insights into the optimal allocation strategies based on their risk appetite. Whether you are a conservative, moderate or aggressive investor, our article offers suitable portfolio options that will help guide your investment decisions. The favourable market conditions started at the beginning of this fiscal year may encounter slight setbacks due to lingering concerns surrounding inflation and interest rates. The actions taken by several central banks worldwide, such as raising interest rates, could temporarily impede the ongoing market momentum. However, astute investors should view this as an opportunity to capitalise on the situation by acquiring their preferred stocks at discounted prices.
 

RAJESH V PADODE
Managing Director & Editor

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