Top 5 Best Gold ETF in 2023

 

There are several ways of buying gold for investment purposes. Gold ETFs (Gold Exchange Traded Funds) are one of the easiest and safest ways. In this blog, let’s discuss these asset classes and get a list of the best Gold ETFs in India for 2023.

Gold ETF meaning

Gold ETFs are a type of Exchange Traded Funds. These are passively managed funds. You can include Gold ETFs in your portfolio to diversify it, as these can be a good way to hedge against market volatility.

How do Gold ETFs work?

Gold ETFs invest in gold bullion (99.50% pure). The ETF provider stores this physical gold in vaults with the custodian bank.

Gold ETFs track the price of such physical gold. Investors of these ETFs gain when gold price moves up without actually having to hold it in the physical form.

 

BEST GOLD ETFS

1. IDBI Gold exchange-traded fund

2. Axis Gold ETF

3. Kotak Gold ETF

4. SBI ETF Gold 

5. ICICI Prudential ETF 

​​Benefits of investing in Gold ETFs

1.      Since Gold ETFs are stored in a digital form in your Demat account, you need not worry about theft or paying storage costs.

2.    You can access these as per your requirement without having to depend on your locker provider.

3.    Gold ETFs are liquid, just like stocks. You can buy and sell them as and when you need them.

4.    Since ETFs are available in the form of units, you can buy your desired quantity at low costs. 

5.    Gold ETFs act as a hedge against market volatility giving your portfolio some stability.

6.    Gold ETF in India doesn’t have entry and exit loads.

7.    Investors can avail a loan by pledging their ETFs as security with financial institutions.

8.    You can pledge Gold ETF units with banks as collateral to avail a loan.

 

Market Segmentation & It's Importance

Since its inception, the working of the stock market has undergone several changes. And thanks to technology for making it easy for investors. Now an investor can buy or sell any stock from anywhere in the world. And all an investor needs to do is perform thorough research about a particular stock before investing. Though several fundamental and technical factors are considered before investing, market sentiment can also help understand stock and the market. In this blog, let’s discuss market sentiment analysis, its importance and how to measure it in detail.    

What is market sentiment?

Market sentiment is the attitude and mood of investors towards a stock or a specific sector in the market. In simple terms, market sentiment can be described as the aggregated public view or opinion that can make up market psychology. The public sentiments on the market can result from several external factors like policy changes, management behaviour, natural disasters or any macroeconomic factor. This sentiment can impact the price of stock either positively or negatively.

How can market sentiment impact the stock market? 

The falling stock prices indicate bear market sentiment, while the rise in the prices indicates bullish market sentiment. Usually, markets are driven by emotions like fear and greed. When there is a stock with certain positive changes to the management or any external factor, everyone wants to buy the stock expecting it would make high returns. This eventually can lead to a bullish trend. And if any negative or unimpressive changes take place in the company, the stock can see a bearish trend. Analysing these emotions in the stock market is called market sentiment analysis. 

Importance of market sentiment analysis to predict a stock price 

Let’s assume there is a stock where the price increases, and you try to invest in it without analyzing the company. This can be due to the fear of missing out (FOMO). In such cases, we might have seen that after investing, the stock prices start coming down, entering the bear market, which can turn out to be a loss for the investor. 

For example, you are buying 10 stocks for Rs. 100. But after you buy, the stock price drops. In this case, out of fear, selling all 10 stocks for Rs. 70 is a loss. This is because you didn’t know the right time to invest in the market and got driven by the market movements. 

An investor can use market sentiment analysis to determine whether the market is driven by feelings and emotions or by rational decision-making. Market sentiment analysis is considered valuable as it can help you determine the opinion of investors. 

Top Performing Monopoly Stocks In India

                                                                                                    * monopoly stocks in India

 The stock market comprises various sectors and companies. Not all companies are the same or function in the same sector. A few companies stand alone in the market with less or without competition, which are called monopoly companies. In this Blog, read about the best monopoly stocks in India and whether it is good to invest in such companies. 

What are monopoly stocks? 

It is called monopoly competition when there is no or less market competition due to a single seller’s presence. Stocks of those companies that don’t have competition or very few are called monopoly stocks. These companies usually control the market and are solo or large players in the market.  

For example, Indian railways. IRCTC is the only railway service provider of railways service in India. And also, they have control over their service prices.

Best monopoly stocks in India

1. Indian Railway Catering and Tourism Corporation Ltd (IRCTC)

This large-cap company is an Indian public sector undertaking that provides ticketing, catering, and tourism services for the Indian Railways. The 5-yr CAGR of IRCTC is 23.71%, and it holds a total debt of Rs. 106.66 cr. 

2. Hindustan Aeronautics Ltd (HAL)

Founded in 1940, HAL is an Indian state-owned aerospace and defense large-cap company. It is one of the largest and oldest aerospace and defense manufacturers globally. The 5-yr CAGR of HAL is 15.91%, and it holds a total debt of Rs. 49.27 cr. 

3. Indian Energy Exchange Ltd (IEX) 

This small-cap company offers an online electricity trading platform for trading, clearing, and settlement operations. It started its operations in 2008 and is regulated by the Central Electricity Regulatory Commission. The 5-yr CAGR of IEX is 21.20%, and it holds a total debt of Rs. 10.01 cr. 

4. Multi Commodity Exchange of India Ltd (MCX) 

Founded in 2003, MCX is India’s largest commodity derivatives exchange. It operates under the ownership of the Ministry of Finance, Government of India. The 5-yr CAGR of MCX is 2.53%, and it holds a total debt of Rs. 0.86 cr. 

5. Coal India Ltd

This large-cap company is an Indian central public sector undertaking under the ownership of the Ministry of Coal, Government of India. Coal India is the largest government-owned coal producer worldwide. The 5-yr CAGR of Coal India is 13.70%, and it holds a total debt of Rs. 3,513.64 cr. 

6. Hindustan Zinc Ltd (HZL)

The large-cap mining company is engaged in the mining and smelting of zinc, lead and silver metal in India. It was founded in 1966. The 5-yr CAGR of HZL is 2.98%, and it holds a total debt of Rs. 2,844 cr. 

7. ITC Ltd

Founded in 1910, ITC is an Indian conglomerate company diversified into sectors such as FMCG, software, hotels, speciality papers, paperboards, packaging and agribusiness. The company has 13 businesses in 5 segments and exports its products to 90 countries worldwide. The 5-yr CAGR of ITC is 7.81%, and it holds a total debt of Rs. 249.44 cr. 

8. Marico Ltd

The large-cap company, Marico, founded in 1990, is a consumer products company operating in the beauty and wellness space. The company’s principal products include edible oils and value-added hair oils. The well-known brands include Saffola, Livon, Parachute, Hair & Care and Nihar. The 5-yr CAGR of Marico is 8.92%, and it holds a total debt of Rs. 479 cr. 

9. Computer Age Management Services Ltd (CAMS)

CAMS is a small-cap company founded in 1988. It provides investor services, distributor services and asset management companies (AMC) services. The 5-yr CAGR of CAMS is 21.65%, and it holds a total debt of Rs. 81.94 cr. 

10. Pidilite Industries Ltd

Founded in 1959, Pidilite Industries is an Indian adhesive and glue manufacturing company. The 5-yr CAGR of Pidilite Industries is 7.21%, and it holds a total debt of Rs. 415.83 cr. 

 

Top 7 Semi-Conductor Stocks In India

 

The semiconductor industry has come into the limelight in recent years. This is especially true since the advent of the pandemic when the demand for semiconductors increased immensely, but supply constraints resulted in a global shortage. But because of their crucial application in electronic devices, semiconductor companies continue to enjoy popularity. In this article, let’s take a look at the industry overview, semiconductor stocks in India, and why the sector is likely to be a lucrative investment option.

1. Tata Elxsi Ltd

Tata Elxsi is involved in the design and development of computer software and hardware. The company was founded in 1989 and operates in two segments: system integration and support, and software development and services. The market capitalization of Tata Elxsi is Rs. 38,716 cr. The stock’s 1-yr return is 1.68% and the 5-yr CAGR is 498.72%. 

2. ASM Technologies Ltd

Founded in 1992, ASM Technologies offers business and technology consulting, application maintenance, enterprise solutions, product support etc. The market capitalisation of the company is Rs. 538 cr. The stock’s 1-yr return is -37.94% and the 5-yr CAGR is 522.45%. 

3. Dixon Technologies (India) Ltd

Dixon Technologies is a multinational contract manufacturer of electronics like washing machines, televisions, smartphones, LED bulbs, etc. The company was founded in 1993 as Weston Utilities Ltd. The market capitalisation of Dixon Technologies is Rs. 22,068 cr. The stock’s 1-yr return is -29.64% and 5-yr CAGR is 381.86%. 

4. SPEL Semiconductor Ltd

Founded in 1984, SPEL Semiconductors is India’s first Semiconductor IC assembly and test facility provider. The market capitalisation of the company is Rs. 232 cr. The stock’s 1-yr return is 25.57% and the 5-yr CAGR is 179.01%.

5. Moschip Technologies Ltd

Moschip Technologies is a semiconductor and system design services company, which focuses on mixed-signal IP, Turnkey ASICs,  IoT solutions, semiconductor and product engineering catering to several sectors like automotive, medical, networking and telecommunications, consumer electronics, aerospace and defence. 

The company was founded in 1999. The market capitalisation of Moschip Technologies is Rs. 1,154 cr. The stock’s 1-yr return is -5.17% and the 5-yr CAGR is 60.16%. 

6. Ruttonsha International Rectifier Ltd

Founded in 1969, Ruttonsha International Rectifier is a manufacturer of power semiconductors and has over five decades of association with International Rectifier, USA. The market capitalisation of the company is Rs. 261 cr. The stock’s 1-yr return is 24.68% and the 5-yr CAGR is 517.47%.

7. HCL Technologies Ltd

HCL Technologies is a multinational IT and consulting company. The company was founded in 1976. The market capitalisation of HCL Technologies is Rs. 2,85,570  cr. The stock’s 1-yr return is -21.99% and the 5-yr CAGR is 127.84%. 

 

Three Sectors to Look out in 2023

 What an exciting year 2022 was! Nifty50 touched its all-time high of 18,887.60 amidst high volatility and impending economic recessions, and interest rate hikes. Domestic investors have voiced their confusion about the disconnect between the performance of the Indian markets and the current economic conditions. Despite this, stock prices have seen significant growth, setting the stage for a successful 2023.

1. Pharma and Chemicals

Talking about the sector that they are looking forward to in 2023, Divam Sharma, Founder and CEO of Green Portfolio, says, “Pharma and chemicals are the sectors we are very bullish on for the coming years. These two sectors have felt the wrath of high raw material prices in 2022. Export opportunities are immense for these sectors. Capex of the companies we have exposure to are now coming online, which will result in a rise in the top line, and with inflation stabilizing, we should see higher margin levels being reinstated”.

He further added, “Sentiments towards India are at a pivoting stage. With instability and regulatory uncertainty in the biggest emerging market, institutions are turning towards India. Being the fastest-growing large economy and being a strong consumer market, Indian markets are the place to be. Our markets are forecasted to grow at 7% annually when western economies are peering into a recession. And we see its reflection in the markets. When Nifty is up by 6% for the year, US indices are down by 21%”. 

Divam also says that “Valuations of the small and mid-cap stocks we follow have come to an exceedingly attractive level. The lower the price, the higher the upside – assuming business performance expectations remain the same, and this is the case with the stocks we follow. Yes, the mega caps and banking names have climbed, but the broader markets haven’t moved an inch. I strongly believe the good days for small and mid are yet to come, and 2023 will be the year of departure. ”.

Electric Mobility

According to Jiten Parmar of Aurum Capital, “Electric mobility is definitely a theme to look at. Adoption is improving, especially in the 2-wheeler sector. It has been the fastest adoption and will grow the most and the fastest. Followed by 3-wheelers and passenger vehicles. There are multiple ways to play this.”

“It could be OEMs (original equipment manufacturers), auto ancillaries, battery manufacturers, EMS manufacturers, and so on. Of course, amongst OEMs, time will tell who the winners are. Many big players are just testing the waters. As of now, it is difficult to judge whether the traditional OEMs will succeed or the incumbents will. But many incumbents have taken head-starts. This theme will definitely throw multibaggers in the future”, says Jiten. 

Defence

Vikas Gupta, the CEO and Chief Investment Strategist at Omniscience capital, says, “Defense is one of the strongest growth vectors that we identified, and it has rewarded the investors well. The outlook for this growth vector remains strong considering the sustained focus on Aatmanirbharta in Defence”.

He further added, “The industry is well positioned to achieve this year’s target of Rs. 90,000 cr. of domestic defence production (Rs. 42,800 cr. completed till September 2022) and Rs. 15,000 cr. of exports (~Rs. 8,000 cr. exports done so far). This trajectory sets the industry well to achieve the targets envisaged in DPEPP 2020 to achieve Rs. 1.75 lakh cr. domestic production and Rs. 35,000 cr. exports by 2025. The establishment of Uttar Pradesh and Tamil Nadu defence corridors at the cost of Rs. 10,000 cr. each is a significant step in boosting domestic production capabilities. More than Rs. 6,000 cr. have been invested, and 150+ MoUs have been signed”.

 

Top 10 Most Expensive Stocks

 EXPENSIVE STOCKS

Here’s a mind-blowing fact for you – Berkshire Hathaway is the most expensive stock in the world, trading at ~$4,81,258.03 per share as of 17th January 2023. Have you ever wondered which is the most expensive stock in India? In this article, let’s look at the top 10 most expensive stocks in India, why you should invest in them, and things to remember before investing in them.

Let’s dive in.

Top 10 most Expensive stocks in India

MRF Ltd

A leading tyre manufacturer in India, MRF Ltd produces a wide range of tyres. It specialises in car and bike tyres, trucks/buses tyres, LCV and SCV(light and small commercial vehicle) tyres, farm services & OTR tyres.

The company, as of 17th January 2023, had a market capitalisation of Rs. 38,048.54 cr. and a stock price of Rs. 89,228.35. MRF Ltd’s 5-yr Return on Investment (ROI) is 9.94%, and its net profit margin is 3.4%. The fundamental score of the stock is 5.71.

Page Industries Ltd

Founded in 1994, Page Industries Ltd is the exclusive licensee of JOCKEY International Inc. (USA) for the manufacture, distribution and marketing of the Jockey brand in India, Sri Lanka, Bangladesh, Nepal, UAE, Oman and Qatar.

As of 17th January 2023, its market capitalisation was Rs. 44,894.62 cr., and the stock price was Rs. 40,095.4. Page Industries Ltd’s 5-yr ROI and net profit margin are 41.95% and 13.73%, respectively. The fundamental score of the stock is 5.50.

Honeywell Automation India Ltd

Incorporated in 1984, Honeywell Automation India Ltd is a leader in providing integrated automation and software solutions, including process solutions and building solutions. It is a Fortune India 500 company having a wide product portfolio in environmental and combustion controls and sensing and control, and it also provides engineering services in the field of automation and control to global clients.

The company, as of 17th January 2023, had a market capitalisation of Rs. 35,042.71 cr. and a stock price of Rs. 39,418.85. Honeywell Automation India Ltd’s 5-yr ROI and net profit margin are 18.13% and 11.18%, respectively. The fundamental score of the stock is 7.15.

Shree Cement Ltd

Founded in 1979, Shree Cement Ltd is a leading cement manufacturer in North India. The company markets their products under three brand names – Shree Ultra Jung Rodhak Cement, Bangur Cement and Tuff Cemento.

On 17th January 2023, the company’s market capitalisation was Rs. 87,098.02 cr., and its stock price was Rs. 24,060.4. Shree Cement Ltd’s 5-yr ROI is 12.16%, and its net profit margin is 14.99%. The fundamental score of the stock is 6.25.

3M India Ltd

3M India Ltd is a technology company which works across various segments like industrial, packaging, healthcare, safety and graphics and consumer. As of 17th January 2023, the company’s market capitalisation and stock price were Rs. 25,229.92 cr. and Rs. 22,514.15, respectively. 3M India Ltd’s 5-yr ROI and net profit margin are 19.14% and 8.06%, respectively. The fundamental score of the stock is 6.31.

Abbott India Ltd

Abbott India Ltd is a healthcare company engaged in the pharmaceuticals business. The company has a portfolio of offerings in diagnostics, medical devices, nutritional and branded generic pharmaceuticals.

The company, as of 17th January 2023, had a market capitalisation of Rs. 47,348.11 cr. and a stock price of Rs. 22,041.45. Abbott India Ltd’s 5-yr ROI and net profit margin are 24.55% and 15.98%, respectively. The fundamental score of the stock is 6.45.

Nestle India Ltd

Nestle India Ltd is a subsidiary of the world’s largest food and beverage company, Swiss-based Nestle. The company engages in the manufacture and sale of food products. The firm offers beverages; breakfast cereals; chocolates and confectionery; dairy; nutrition; foods; vending and food services; imports; exports; and Nestle ad campaigns brands.

As of 17th January 2023, its market capitalisation was Rs. 1,90,752.22 cr., and its stock price was Rs. 19,735.6. Nestle India Ltd’s 5-yr ROI is 77.49%, and the net profit margin is 14.46%. The fundamental score of the stock is 6.59.

Bosch Ltd

Founded in 1951, Bosch Ltd operates in the manufacturing and trading of automotive products. The company is a leading supplier of technology and services in the areas of Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. Additionally, Bosch has in India the largest development centre outside Germany for end-to-end engineering and technology solutions.

The company, as of 17th January 2023, had a market capitalisation of Rs. 51,121.03 cr. and a stock price of Rs. 17,089. Bosch Ltd’s 5-yr ROI and net profit margin are 11.03% and 10%, respectively. The fundamental score of the stock is 4.79.

Procter & Gamble Hygiene and Health Care Ltd

Procter & Gamble Hygiene and Health Care Ltd is engaged in the manufacturing and selling of branded packaged fast-moving consumer goods in the femcare and healthcare businesses. On 17th January 2023, the company’s market capitalisation was Rs. 45,175.11 cr., and its stock price was Rs. 13,892.6. Procter & Gamble Hygiene and Health Care Ltd’s 5-yr ROI is 60.49%, and the net profit margin is 14.66%. The fundamental score of the stock is 5.88.

Lakshmi Machine Works Ltd

Lakshmi Machine Works Ltd is engaged in the manufacturing and selling of textile spinning machinery, computer numerical control machine tools, heavy castings, and parts and components for the aerospace industry.

As of 17th January 2023, the company’s market capitalisation and stock price were Rs. 12,204.2 cr. and Rs. 11,504.9, respectively. Lakshmi Machine Works Ltd’s 5-yr ROI and net profit margin are 7.30% and 5.58%, respectively. The fundamental score of the stock is 3.55.

 

How to Invest

 

   INVESTING AND ITS PROCESSES                        

              

Investing is a way of achieving your financial goals, like buying a horse, funding your child’s education, being financially stable post-retirement, and many more. It is allocating your money towards an asset with the hope that it’ll make your future better financially. There are various investment options available in the market. Each investment comes with its own goal, risk, and returns. Amongst several investment options in India, stocks are a popular option. In this article, learn about stocks, types, how to invest in the stock markets pros, cons, and more. 

What are stocks? 

In simple terms, stocks are the share of ownership in a company. These are also known as ‘equities’. Based on the entire company’s value, the price of each share is decided. So when you buy shares of a company, you own a small portion of that public corporation. 

For example, Rahul wants to start a company and needs an investment of Rs. 10 lahks. But he has only Rs. 4 lahks. So he asks 2 of his friends to invest in the company. He gives them 30% of the company’s ownership in return. After 5 yrs, the company is performing well and is valued at Rs. 50 lakh, the value of the investment of Rahul and his friends increased by 5 times.      

Therefore, when the company’s value grows, your investment also grows. But you can’t buy stocks in any company you like. For an outsider to purchase shares in a company, the company must be listed publicly in the stock market. 

What is the stock market?

The stock market is a platform where shares of companies trade. The buyers and sellers of different companies’ shares come together and trade in the share market. The stock market provides the details of the liquidity that an investor requires after purchasing a share of a particular company.

In India, there are two national-level stock exchanges: the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). When private companies list themselves on the stock exchanges, they become public companies where anyone can buy or sell company shares.  

How to invest in the stock market?

Once you understand the working, investing in the stock market is simple. It involves a few steps as follows. 

1. Select an intermediary (broker)

In the stock exchanges, direct buying or selling shares by individuals is not allowed. Only an authorised company or individual by the SEBI is permitted. These companies or brokers act as intermediaries and can trade shares in a stock exchange on your behalf. For the intermediary service provided, the broker charges a fee from you. 

2. Open a Demat account

Demat account is used to hold shares and securities in electronic format. Earlier shares were issued in paper format, but now everything is digitalised, and shares are issued in electronic form. All the electronic securities and shares that individual purchases are kept in electronic form under the Demat account.

Documents need to open a Demat account are, 

·        Photo ID proof like PAN card, Aadhaar card, driving licence or voter ID card.

·        Address proofs like driving licence, passport, utility bills, etc. 

·        Proof of the bank account like a bank passbook or account statement 

Steps to open a Demat account online

·        Visit your broker’s website and open a Demat account for free. 

·        Fill out the Demat application form. 

·        Scan and submit the required documents.

·        Provide your bank account details to transact. 

·        Once your account is verified the Demat account will be opened.

3. Buy a share

·        Once the Demat account is opened, you are all set to start buying or selling shares on the stock market. Shares can be bought by giving instructions to the brokers. If you want to buy a share, you must provide the broker with price and quantity instructions. Once the price in the market matches the provided price, then the trade is executed. If you are buying a share and want to take delivery, it will take a few days to reflect the shares in your Demat account. It is called the settlement period.

·        You can directly buy a share on the online trading platform. Current BID/ASK prices reflect each share in the trading platform. So you can give buying instructions directly on the online trading platform provided by the broker.