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Newsletter: Market Overview, 5 good reads on investing & latest episode of our weekly show

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🔆 Quick glance

  • Nifty 50 PE ratio – Valuation indicator for the current markets
  • Hits & Misses – Stocks that gained and lost the most
  • Links we like – 5 good reads on markets & money
  • Capitalmind Show – Kya Lagta Hai Bazaar

Market Overview 🎯

The Nifty’s PE Ratio is the Nifty’s market cap divided by the earnings of the companies, added up. The ratio is used as a valuation relative to the past.

It’s easier to miss the big picture amidst the short-term noise. So let’s zoom out.

Currently, the PE ratio indicates that the Nifty 50 is at an attractive level to buy into.

Newsletter: Market Overview, 5 good reads on investing & latest episode of our weekly show

(Note: Data source is the Nseindia website. The chart shows average historical NIFTY Price-Earnings ratio for the month from 1999 to the present. NSE used trailing four quarters’ standalone earnings from inception till March 2021. Starting April 2021, NSE uses consolidated earnings for the Price-Earnings calculation.)


Hits and Misses 📈 📉

Stocks that topped the charts or failed to impress this week.

IT pack got battered over the week even when the rupee continues to fall against the dollar. Usually, a falling rupee has made the stocks of IT firms go up. But, there’s fear of inflation-led global slowdown that’s dragging the sector down.

Wipro and HCL in particular are having a forgettable 2022. NTPC was the biggest gainer this week along with ONGC bouncing back after last week’s decline.

Newsletter: Market Overview, 5 good reads on investing & latest episode of our weekly show


Links we like 📝

  • Much, and too much, has been written about how one should go about buying into equities. We have compared lumpsum investments, SIPs, STPs, Weekly SIPs, Daily SIPs, and whatnot. Here’s, for a change, a framework that talks about how to sell. Read – Sell Slowly
  • Timeless investing principles exist to remind us of the simple concepts that drive success. Focusing on the long run, avoiding excessive risks, keeping costs low, limiting the number of trades, and understanding what’s in your portfolio are examples of common sense ideas that have kept investors out of trouble for a few centuries. Read – 7 Timeless Value Investing Principles from 1922
  • Not every failure is one roll of the dice away from being a success, but every single success was, at one time, a single roll of the dice away from being a failure. When evaluating “winners,” it is important to study what they did well just as much as what they luckily avoided. Read – Good Luck
  • Sri Lanka’s economy is now in a state of collapse, with spiraling inflation and shortages of both food and fuel. How and why did Sri Lanka’s economy get so bad? Read – Why Sri Lanka is having an economic crisis
  • It sure feels like the stock market is currently pricing in an imminent recession. But it’s important to remember the stock market doesn’t have a perfect track record of pricing in economic contractions ahead of time. Read – What’s Priced Into the Stock Market?

Kya Lagta Hai Bazaar🎙

We do a weekly show with Deepak Shenoy where we talk about markets, finance, and investing. A candid conversation to wrap up the week and a chance to interact with you all. Join in, every Friday, at 4 PM on YouTube.

Here’s our latest episode (aired yesterday) where we talk about a host of topics – The auto sector, the impact of the strengthening dollar, the latest RBI policy, LIC, Adani, and much much more. Listen in.


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Newsletter: Market Overview, 5 good reads on investing & latest episode of our weekly show
Newsletter: Market Overview, 5 good reads on investing & latest episode of our weekly show
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