Weekly Market Overview: Nifty 50 Rises Amid Fading Uncertainty:-
We are going to discuss some important companies and some important updates related to them. First of all we will discuss about the market. Because if we talk about the last one week, we have seen a one-sided move in the market. The performance of Nifty 50 has seen almost 3% upside in the last one week. Now what is the reason behind this performance? A lot of the uncertainties that were there in the market, whether they were related to war or the competitive market, seem to be getting shorted out somewhere or the other. Due to this, we have also seen good performance of the market. But still if we observe then there are some things in the market which can somewhere vanish this one-sided move which was seen. If you look at the market in any time frame, whether it is in 1 year, 5 years or 1 month or 1 week. There is always some uncertainty in the market.
Global Risk Watch: Trump’s Tariff Talks Could Shake Markets:-
If any uncertainty remains massive then due to that the market is seen performing one sided. Like negative and if some things get sorted out, there was a massive uncertainty in the market and if the market finds a solution to it, then the market also delivers good performance, which has also been seen in the last one week. But now let us see whether there are any things that can vanish this performance of the market. Let’s talk about that too. So look friends, if we talk about the biggest uncertainty then it is this person. Who is brother Donald Trump? Now, when we talk about humans then it is obvious that we will talk about tariffs. Without tariffs, you haven’t been able to hear Don Trump’s name ever since his new term began. Now look friends, what we saw recently was that we saw a trade deal being signed between the US and China. It has been made official from China’s side as well and we have seen the same being made official from the US side as well. Now here it has been seen that a statement was seen from Trump that now his last or we can say an important trade deal which is going to be signed is going to be signed with India somewhere and a lot of full barriers which were put in place in this can be dropped. Now try to understand this. Look, there are many US companies which can come to India and do business if they want to, but they have to follow a lot of regulations. Things are not that easy. We also get to see things like taxes etc. and many other things. So, the trade pack that Trump can sign here with India will include many of the barriers that India had put on US companies. It is possible that you may see some drop in it i.e. you may get a discount. Now look friends, all this stuff that we are hearing right now is coming from Trump’s mouth. But now we are getting to see the report. This is a report from some time ago. It has been mentioned that the interim trade drill between India and US is seeing its finish line near. That means, we can say that it is being seen near completion. What is most important at this time is that the agreement regarding the sensitive sector is still going to be very important. The report is claiming all these things.
We will get to hear things before that. Now all these things like the trade deal that is being signed, if there are some things in India’s favour then it is a good thing but if some things are not in India’s favour then somewhere we may see an impact on India’s GDP growth, regarding which a lot of data will be seen, but you will not get to see it right now, meaning you will see the data first but if we talk about the present, then you will not get to hear any data related to it right now, when we get to see the agreement coming then you will get to hear all those things and if all those things are good then somewhere the inflow of FI i.e. foreign investors can be seen good in our market and if all those things are giving more benefit to the US and less to India, then what will happen with this is that like before, foreign investors can also be seen withdrawing money from the market.
Company 1: Jio Financial Services Ltd (JFSL) – New Approvals, Mixed Sentiment:-
So all these things are not official. Meaning, have tried to tell you everything on the basis of data, what are the chances of happening and what things can happen. But yes, there is no need to take this as a guarantee. All the things are for learning only that how you can analyze based on market and data etc. that how market can react on what basis. About some companies in which the name of the first company is Jio Finance Services LED. Now friends, if we talk about Jio financial service, recently we got to see a lot of big news regarding this. Friends, here we heard a news that Jio Black Rock has got the approval from SEBI to provide brokerage and clearing services. That means, as a stock broker, now you will get to see Jio financial service working. Recently, we heard a news that SEBI had given approval to Jio BlackRock Investment Advisor Private Limited to work as an investment advisor and its subsidiary has just got approval to work as a stock broker and friends, we saw all these things related to stocks but in future we will also get to see some big news related to mutual funds from Jio Finance Services because the joint venture of Jio Finance Services, Jio BlackRock Mutual Fund, is ready to operate as a so-called mutual fund industry on the pretext of an investment manager and regarding this also, we have seen green light coming from SEBI.So it is possible that in the future you may see the launch of the stock broking application from Jio finance service or else we may see that you will see Aradi working on both these platforms as we see on other platforms as well.
Now apart from this,if about the interest of mutual funds, if you look at it in the month of May, we have not seen anything particularly good in Jio Financial Services. So 4283000 63 36 equity shares and this number which read to you, this is what the mutual fund has told you in the month of May, can you tell to whom it was sold? If you look at the data from Jio Finance Sevices in the month of April, we have seen significant selling by mutual funds and one thing to notice in the share holding pattern of this company is that FIs have trimmed their stake in this company every quarter since the time this company got listed till now. I will also explain the reasons behind this and DIZ has recently tried to increase its stakes. Now if you look at Q4, we saw a massive jump from DIS in their stake. But if we talk about Q1 after Q4, sorry Q4, then selling has been witnessed in both the first month i.e. April and May. So, there is a high possibility that in the share holding pattern that we will see in Q1, you may see a drop in DI holding. And why is FI selling friend? So FIs basically prefer to invest in companies which are reporting high growth and that is not coming from this company. So let us see that on the basis of all the approvals received from SEBI, if they start reporting growth in their revenue and profit, then it is possible that we may see the return of FIS.
Company 2: Bajaj Finance Ltd – Back on Growth Track:-
About the next company. So the name of the next company in me is Bajaj Finance LED. Now friends, if you look at the latest share holding pattern of this company, one thing will be seen in it that FI has increased its stakes in this company back to back in the last two quarters, i.e. has pushed it. And now we have seen the share holding pattern data of this company till June. Where we are seeing FI interest slightly upside. And FI’s stake in this company is looking slightly upside because in between the growth of this company was seen to be a little weak. But if you look back, the company’s revenues can be seen coming on track. And due to the recent rate cuts that we have seen, it is expected that in the future too we will continue to see growth in the assets under management of the company. And friends, now if you look at the company’s median PE of the last 5 years and the current PE, then even now this stock is seen trading below its median PE of the last 5 years. So, somewhere this is also a plus point for this company that the company definitely has a low valuation. If you take the average of the last 5 years, but even in this low valuation, if we look at the growth of the company in terms of revenue, then we are seeing consistent good growth. Recently we also saw some data that the IPO of SDB Financial Services and its valuation is quite low. If we compare it with Bajaj Finance or compare it with 16. But we had done the analysis and compared the data to see why the valuation of Bajaj Finance is high and the low valuation. Because if we look at it in terms of growth rate, the growth rate of Bajaj Finance is much better. If we look in terms of net interest margin, if we look in terms of NPS of the company then Bajaj Finance easily beats SDP Finance Services on many parameters. So because of this the valuations can say that Bajaj Finance is quote better. If we compare HDB Finance services then you can pay attention to these things if you are a shareholder of Bajaj Finance or this company.
Company 3: Paras Defence & Space Technologies – Stock Split Adjustment Coming:-
All things are for learning only. About the next company which belongs to the defense sector. We will see split adjustment in this company on July 4th. what is the name of the company bro? So the name is Paras Defence and Space Technologies. Recently the company had given a split in the ratio of 1:2. We will get to see his adjustment on July 4th. So if you are a shareholder of this company then you can definitely take note of this news. If you are not a shareholder, you can ignore it.