Introducing “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

Use your capital efficiently !

This article delves into the pitfalls of emotional decision-making and missed opportunities for financial growth without a well-defined approach. Don’t miss out on valuable insights! Dive into the case study featuring Cochin Shipyard and learn how strategic planning can reshape your investment journey.

Is Gold ready to go up 50%+ in coming years

Uncover the intricate dance between the Federal Funds Rate and the gold market! Delve into our latest blog post, where we decode the impact of this pivotal interest rate on the precious metal’s price. A compelling chart unveils the historical relationship, providing valuable insights for investors.

Advantage India !

Embark on a journey through the evolving global economic landscape! Our latest blog post dissects the dynamics of power shifts from China to India, unveiling compelling data that signals India’s ascent. Analysts are buzzing about India’s potential for incremental growth, and you won’t want to miss the insights.

History of how AMD trumped INTEL in the last few years

Dive into the riveting saga of computer hardware’s titans – Intel and AMD! Our latest blog post unravels the tumultuous journey of these tech giants, from innovation peaks to challenging valleys. Discover the dynamic history shaping the devices we rely on daily. Ready to explore the twists and turns of Intel and AMD’s fortunes?

Panic Selling Never Helps

Navigate the tumultuous waters of the stock market with our latest blog post, featuring a cautionary tale from the recent Polycab saga. Discover the perils of panic selling and the substantial losses it incurred for investors. Join us as we delve into the details of this case, unraveling valuable lessons for stock market enthusiasts.

The deep pitfalls in Value investing

Embark on a journey into the intriguing realm of value investing! Our latest blog post unravels the nuances of this strategy, shedding light on its allure and potential pitfalls. As an investor, understanding the importance of an exit plan is crucial.

Markets this week

Nifty experienced a losing trend in the first two sessions of the week, followed by a flat performance. However, HDFC Bank had a significant impact on the market, causing a slump on January 23. 

Market stabilization occurred in the last two days, and a correction has been observed since the market’s peak of 22,000 plus. The depth of the correction remains uncertain, but the overall sentiment does not indicate weakness at the moment, especially considering the strength of the broader market.

Benchmark Indices & WeekendInvesting Overview

While the Nifty was down half a percent, small caps gained 1% during the week. The CNX 200 and CNX 500 lost ground, but the mid and small-cap 400 index rose by 0.4%. The Nifty Next 50 index also experienced a positive performance, up by 0.6%.

It is interesting to note that all indices have shown significant gains in the financial year 2024. Mi MT Allcap gained 5% in a single week, reaching a total gain of 80% since the beginning of the financial year. This strategy has been well-received within the Weekend Investing community.

Mi MT Allcap gained 5% in a single week, reaching a total gain of 80% since the beginning of the financial year. This strategy has been well-received within the Weekend Investing community.

Other notable performers include the Mi 20, which gained 3.5% this week and has achieved a remarkable 119.3% return for the financial year. Mi Evergreen saw a 2.9% increase this week and stands at a 61% gain for the FY, while Mi 35 recorded a 98% return (FY 24).

Mi India 10 also delivered positive results, with a 2.3% gain for the week and an overall increase of 44.8% for the financial year. These returns are particularly impressive considering that the Nifty has only gained 23% during the same period.

The HNI Wealth Builder strategies, Mi ATH 2 and Mi 25, both saw gains of over 1.5% this week. Mi 25 has achieved a remarkable 68.1% gain and Mi ATH 2 is up by 81.2% for the financial year. Mi NNF 10 outperformed the Nifty Next 50 index this week, delivering a 1% gain compared to 0.6% for the Nifty Next 50. This strategy has shown a significant 66.2% gain for the financial year compared to the index’s 43.6%.

Sectoral Overview

Real estate underwent a significant decline, dropping by 4.5% this week, while private banks and FMCG stocks also experienced losses.

On the other hand, public sector enterprise stocks gained 3.2%, energy stocks increased by 1.8%, and infrastructure stocks rose by 1.5%.  In FY 24, Public sector enterprise stocks have shown a remarkable 86% gain, while real estate stocks have climbed even higher at 112.6%.

PSE holds on to the top spot with an impressive performance in the recent times. IT has done very well to secure the top rank in the last 2 weeks. It will also be interesting to note that PHARMA takes the #1 position on the monthly chart. An alarming sign for REALTY to have gotten relegated to #17 in the last 15 day performance.

Spotlight – How index investing does not guarantee performance always

There is a common belief that you can invest in the index and everything else will get taken care of. This is primarily due the bias that Nifty 50 has done incredibly well over the last 30 years and is expected to continue on the same trajectory.

We are not trying to say that index may not go up from here but there might be a situation where we can experience stagnation in the index as well. Check out the charts of some of the benchmark indices other countries.

HANGSENG – went no where for 25 years

NIKKEI – a story of painful wait since 1989

Nifty stayed flat for 6 years between 2008 and 2014

But the point to note is that there were many stocks and sectors that did extremely well during this period. Let’s take a quick look.

If you were an investor who started in 2008, you may have virtually been flat throughout the six year period while some stocks and sectors did exceptionally well.

What if you could invest in the best performing stocks / sectors without any weightage bias ?

This is what Mi India Top 10 aims to accomplish. The strategy allocates 10% weights to the top 10 trending stocks from the Nifty 50 universe. The performance in FY 24 has been very impressive at 43% compared to 23% on Nifty 50.

Check out the insightful LIVE session with Team Smallcase to understand how Mi India Top 10 remains agnostic to the sector / stock / weightage to try and extract alpha from its benchmark.

Use code REPUBLIC20 to avail a flat 20% discount on Mi India Top 10. Valid only till end of 29 Jan 2024 (Monday)

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 day later.

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