The WeekendInvesting Newsletter

Another brand new initiative from our Research Desk is The WeekendInvesting Newsletter. This is a daily newsletter that summarizes all the stories we cover during the day(market nuggets), including the daily byte that we shoot every evening. This newsletter will be delivered to your email every evening on market days, providing you with a wealth of market-related information. The newsletter includes both summaries and long-form blogs for all the market nuggets covered. These blogs are also linked to the videos we shoot, so you can choose to watch or read the content according to your preference.

Check out our past newsletters.

From the Research Desk of WeekendInvesting

Don’t rely on Chance !

Understanding market trends is essential for making smart investment decisions. Let’s look at an example involving two stocks from the same family: Bajaj Auto and Bajaj Finance. Over the past year, Bajaj Auto has been one of the best-performing stocks on the Nifty, while Bajaj Finance has struggled. This highlights the importance of following trends rather than making predictions about . .

The 3 Indias

A recent study on India’s consumption patterns reveals interesting insights about the country’s diverse demographics. This research divides India into three distinct segments based on income and consumption habits. Understanding these segments can . . .

Make Money Not Regrets

Alibaba Group, listed on the New York Stock Exchange (NYSE), has shown an interesting performance over the past five years. Initially, the stock price nearly doubled, reaching highs of around 300-320. However, it then . . . .

Is wealth leaving India ?

In 2024, there is an interesting trend in millionaire migration. India is expected to lose 4,300 millionaires who will move abroad. Other countries facing significant millionaire outflows include China with 15,000, the UK with 9,500, and South Korea with 1,200. This migration pattern raises questions about . . .

Inflation 2.0 coming ?

Today, let’s talk about inflation and how it’s influenced by global shipping freight costs. After the COVID-19 pandemic hit, from April 2020 onwards, shipping costs skyrocketed. They increased nearly . . . .

Concentration Risk at Play

In recent times, the top five constituents of the S&P 500 have reached a significant milestone. These five companies now make up 28% of the total weight of the S&P 500. This means that out of 500 stocks, just five hold more than a quarter of the index’s total value. This level of concentration is . . . .

India is a ATM Machine !

In this blog, let us deep dive into an interesting analysis between the stock market growth and the GDP. The orange line represents the Nifty 50, and the blue line represents the CNX 500. Over the past 20 years, Nifty has risen by 1382%, while the CNX 500 has grown by 1523%. In contrast, the white line represents India’s GDP, which has grown by . . . .

You can do better than Warren Buffet !

Today, let’s discuss the amazing growth of Warren Buffett’s net worth. Currently, his net worth is around $135 billion, which is 30% higher than it was about a year and a half ago. This is roughly four times his net worth from 20 years ago. The most interesting part is that . . . .

Spend first or Save first ?

A simple infographic can make a deep impact on our daily habits. Let’s consider two people: one buys a Starbucks coffee every day, and the other buys . . . .

Don’t neglect stocks due to high PE ratios !

When looking at capital goods companies like SIEMENS, ABB, CG POWER, BHEL, SUZLON, HITACHI ENERGY, and GE T&D, an important metric to consider is the price earnings (P/E) ratio. This ratio, ranging from 100 to 325, can be confusing . . .

WeekendInvesting Specials !

Can Nifty reach 50k under current Modi Govt ?

Nobody likes Drawdowns

Markets this week

This week saw the markets continuing their upward trend, driven by various sectors participating in the bull rally. With less than two weeks until the Union budget, the market environment remains calm, without significant global influences. The Nifty index was mostly flat throughout the week, maintaining its position near last Friday’s closing level. However, a substantial upward move on Friday has positioned the Nifty back on its path to a new all-time high.

The weekly trend for Nifty has been consistently positive for several weeks, continuing the momentum that began in November. Despite the possibility of a sell-off or a corrective phase around the budget announcement, the current major trend, which started in March 2023, shows no signs of reversing. Over this period, Nifty has climbed from 17,000 to 24,000, marking an impressive 40% gain in a year and a quarter. Although the market may appear slightly overbought, the prevailing trend remains strong.

Benchmark Indices & WeekendInvesting Overview

This week, the benchmarks showed modest gains, with Nifty 50 increasing by 0.7% and CNX 200 by 0.6%. The CNX 500 remained flat, while the mid and small-cap indices didn’t move. The Nifty Next 50 gained 0.4%. Despite the muted performance this week, the fiscal year 2025 has been strong overall. Small caps have surged by 23.4%, and mid-small 400 by 21%. The Nifty Next 50, which includes large caps beyond the top 50 stocks, has achieved a 21.6% gain for FY 25, indicating robust performance across these segments.

Within the WeekendInvesting strategies, the HNI Capital Compounder was the standout performer this week, gaining 4.2% and reaching 39.4% for FY 25. Mi NNF 10 followed closely, up 3.3% this week and 34% for the fiscal year. Mi Evergreen also did well, rising 3.1% this week and 29% for FY 25. Mi 20 aligned with the benchmark at 0.7% this week but achieved a remarkable 42% for the fiscal year. Mi India Top 10 slightly lagged behind Nifty, gaining 0.3% this week and 10.3% for FY 25. Mi 35 remained flat this week but has grown 32% for FY 25. Mi ATH 2 was flat, while Mi ST ATH fell by 1.2%, still up 13% for the year. Mi MT Allcap dropped 1.4%, up 15% for the fiscal year. HNI Wealth Builder experienced the largest decline, losing 2.9% this week but achieving 22.5% for FY 25.

Sectoral Overview

In terms of sector performance, the IT sector was the standout, particularly after the TCS results, soaring 4.3% this week but only up 8% for FY 25. Public sector enterprise stocks gained 3.8%, and pharma stocks rose 3.7% this week. Other sectors saw gains ranging from 1.8% to 0.5%, with autos up 0.8% and private banks up 0.7%. PSU banks were the only sector losing ground. Overall, sector advances remain robust and consistent with previous weeks, indicating a strong and steadily progressing market across various sectors, though some are advancing faster than others.

In the very short term, sectoral momentum remained with public sector enterprise stocks and pharma stocks. FMCG and energy sectors showed recovery, and gold also made gains. The Nifty 500 segment lost some ground. Over the long term, public sector enterprise stocks have consistently performed the best across various time frames, followed by pharma stocks and energy stocks, which gained 7.8%. There’s noticeable churn, with IT stocks making a strong comeback over the past month and two weeks after lagging in the previous three and six months. Conversely, banking names, which had performed well recently, experienced a slowdown and dropped to a lower position.

WeekendInvesting Strategy Spotlight

We are thrilled to announce that Mi 20 and Mi 35 have completed three years on the smallcase platform. Mi 20, a mid and small cap strategy, and Mi 35, a pure small cap strategy, have shown exceptional performance.

Over the three-year period, Mi 20 achieved a 54% CAGR compared to the mid and small cap index’s 26.4%, demonstrating robust performance. Similarly, Mi 35 recorded a 44% CAGR, significantly outperforming the small cap 250’s 25.3%. This anniversary week marks a milestone for these strategies, and we will be making a special announcement soon. If you haven’t yet utilized these strategies, this might be a great opportunity to consider them.

Special Announcement coming tomorrow (14 Jul 2024). Please stay tuned !

Rebalance Update

We give advance notice here on the upcoming changes in your smallcase for Monday. This advance notice can be used to ignore Monday’s update if there is no change. If there is a change indicated you can use the smallcase app or log in to weekendinvesting.smallcase.com to see the rebalance. A backup email is sent by mid-day Monday if you have not rebalanced by then and yet another one a

Note: We are not including LIQUIDBEES as an ADD or an EXIT count.

WeekendInvesting Strategies Performance

WeekendInvesting Products – LIVE Index Data

Many of you had asked us to make the index series of all WeekendInvesting Products available so that you could perform your own analysis and studies. You can find a link to the LIVE sheet here and also on the HUB under the support column in the content tab.

WeekendInvesting Telegram and YouTube Channel

We post daily content related to investing on our Weekendinvesting Telegram Channel and YouTube channel to help our community take stock of the performance of markets, sectors & our products and touch base upon a new topic every day. We look forward to having you all there! Several videos in this blog are from this series.

Introducing M Profit

That’s it for this week. See you in the next week’s review