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

Are we at the cusp of a correction ?

Many people are waiting for interest rate cuts, thinking they will boost the market. However, historical data, especially from the US markets, shows that . . . .

Young India leads!

Interesting data from the NSE (National Stock Exchange) shows the rapid growth of young investors in the market. From March 2018 to May 2024, the share of registered investors under 30 years old increased from 23% to 40.1%. This surge happened especially after . . .

Global Market Cap Maths

An interesting chart from Gavekal Research highlights the overall size of global equity markets, which total about $80 trillion. The chart breaks down the contributions of different regions and sectors. The standout observation is the . . . .

How China and Korea dealt with F&O frenzy ! Scary !

Recent data from Kotak Institutional Equities highlights an important trend in the options trading markets, similar to what is happening in India today. Observations from South Korea and China show significant impacts of . . . .

When will Emerging Markets Rally ?

Recent research from Bank of America Global Investment Strategy, shared via Bloomberg, sheds light on an interesting trend in the world of equities. The data shows a ratio of emerging market equities compared to US equities, highlighting a significant and ongoing decline in the . . .

Why Gold is a Must ?

Gold has been an undervalued asset class for many decades. Despite its potential benefits, many people overlook it in favor of equities or other asset classes. However, gold is . . . .

History may rhyme but may not repeat

Many people believe in the market adage, “Sell in May and go away,” which suggests that the second half of the year is usually dull for the stock market. This saying implies that summer is a bad . . .

5 Yrs of no returns in India Markets !

In the mid-2000s, infrastructure funds were booming. Many of these funds started between 2004 and 2008, during a period of rapid growth in the infrastructure sector. At their peak, these funds managed large sums of money, with many handling around 500 crores each. This boom was expected to continue, but the reality . . .

Domestic Ownership taking over

In recent years, the landscape of ownership in the Indian stock market has shifted significantly. Data from Whiteoak Capital Mutual Fund reveals that Foreign Institutional Investor (FII) ownership has decreased from . . .

The Pros and Cons of Concentration

A recent chart from Bloomberg highlights a surprising trend in the S&P 500. As of June 30, 2023, the five largest stocks in the index—Microsoft, Apple, Nvidia, Alphabet, and Amazon—constitute almost . . . .

WeekendInvesting Specials !

Can you make 10 Crores from the Markets ?

This is going to blow your mind !

Markets this week

This week, Nifty remained flat despite significant market volatility. After a couple of days of gains, a holiday interrupted the momentum, followed by a rapid surge on Thursday likely due to short covering and positive TCS results. However, by Friday, all gains were erased, closing the week where it started. While Nifty saw no net change, other market segments experienced declines. The weekly candle pattern, an inverted hammer, often signals a potential top and suggests several weeks of consolidation ahead. Given the strong uptrend since March 2023, a cooling-off period seems likely, especially with cautious expectations around the upcoming budget.

Benchmark Indices & WeekendInvesting Overview

Markets this week was a complete seesaw. For the first few sessions, the market was down and out. The budget was the highlight of the week, causing wild swings on budget day but remaining very stable post-budget. The next day was an inside day relative to the budget, and the third day post-budget was also an inside day but without significant declines. Friday, however, was a blockbuster day, with the market closing at a new all-time high of 24,851. This surprising turn of events saw FIIs buying a couple of thousand crores on Friday.

Nifty weekly performance remained very strong, showing no signs of weakness. The upward trend continued with Nifty up 1.2%, CNX 200 and CNX 500 up about 2%, and small caps leading the way with a 2.8% increase. Nifty Next 50 and Mid-Small 400 indices also performed well, up 2.9% and 3% respectively. Small caps reached 23.2% for FY25, indicating robust growth.

In terms of Weekend Investing strategies, Mi India Top 10 led the chart with a 5.1% increase this week compared to Nifty 50’s 1.2%. Mi ST ATH also performed well at 3.8%, Mi MT Allcap at 3%, and HNI Wealth Builder at 3%. Mi 30, Mi ATH 2, and Mi 25 showed gains between 2.8% and 1.8%. HNI Capital Compounder, though slow this week at 1.1%, is still leading for FY25 at 33.9%. Mi NNF 10 was muted this week at 0.9% versus 2.9% on the Nifty Junior index, but it is performing exceptionally well for FY25 at 27%. Mi 35 also remained subdued. It appears there has been a rotation in stocks, where previously leading stocks have slowed down, allowing other sectors to take the lead. Mi 20 and Mi 35 have taken a backseat despite the rise in small caps. Mi Evergreen was flat at 0.1%, and NG 5050 was impacted by cuts in duty on gold.

Sectoral Overview

Pharma and autos led the market this week, up 5.8% and 5.2% respectively. This shift marks a new leadership trend. Public sector enterprise stocks rose by 4.4%, maintaining a 25% gain for FY25. Commodities, consumption, energy stocks, infrastructure, and FMCG stocks also performed well. Real estate stocks were the only laggards. Bank Nifty, primarily led by private banking, declined by 1.9%, with PSU banks not rallying at all. For FY25, they remain the weakest sector tracked. Autos and pharma are leading on a longer-term basis, but FMCG is showing strong short-term momentum.

Sectoral momentum in the short term is led by pharma, autos, and consumption stocks, but over a two-week, one-month, three-month, and six-month average, the same sectors maintain importance. Public sector enterprise stocks have suddenly lost momentum, dropping from fourth to twelfth position. Energy and commodities have also seen some declines.

WeekendInvesting Strategy Spotlight

Mi EverGreen strategy, since its inception on December 27, has completed two years and seven months, showing impressive absolute returns. This strategy invests 25% in gold as a fixed percentage, providing a hedge when the equity part is not performing well.

The performance from July 2022 shows a significant takeoff, virtually doubling returns compared to the CNX 200 benchmark. Mi EverGreen is a 20-stock strategy investing in CNX 200 stocks, with 25% allocated to gold, ensuring a balanced portfolio.

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

Testimonials !

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.

Check out M Profit

Disclaimers & Disclosures

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