The WeekendInvesting Newsletter - 9 April 2024

Here’s an interesting data point for your better understanding of how index performance works. 

The table on the left denotes the stocks with highest gains within the Nifty 50 universe in FY 2024 & their corresponding weightages in the index. 

The table on the right denotes the list of largest weighted stocks in Nifty 50 and their corresponding performances in FY 2024. 

It is rather surprising to note that all top 5 performing stocks from Nifty 50 have clocked in excess of 100% gains collectively hold only a mere 6.7% weightage in Nifty 50. 

Whereas, the top weighted stocks which occupy almost 40% weights in Nifty 50 have had mixed results in FY 2024.

What this suggests is that - For Nifty 50 to do well, the heavyweights (HDFC BANK, RELIANCE, ICICI BANK< INFOSYS & LT) need to put on a great show. 

The spirited performances clocked by the likes of TATA MOTORS, BAJAJ AUTO, COAL INDIA , ADANI PORTS & NTPC have not been able to impact Nifty 50 in a major way owing to their miniscule weightages. 

Is there a way to 

- Determine the strongest stocks within the Nifty 50 universe ? 

- Allocate a bias free equal weights to all strongest stocks ?

Mi India Top 10 does exactly that

👉 Avail a 25% discount when you subscribe to Mi India Top 10 Smallcase using the link below or use code 'FY2025' at checkout !

👉 Last 2 days to avail this offer - valid till 10th April, Wednesday !

Unusual to see this pattern

In a recent analysis by Tavi Costa from Crescat Capital, an intriguing observation sheds light on a significant shift in the global monetary system. The comparison between the gold price (depicted by the white line) and treasury prices (illustrated by the red line) unveils a divergence that has emerged in the past couple of years. Traditionally, these two metrics moved in tandem, yet since 2020, an unprecedented anomaly has unfolded.

Historically, the gold price and treasury prices exhibited a close correlation, moving in sync with each other. From 2014 until the onset of the COVID-19 crisis in 2020, this correlation. . . . .

Reading Time : 3 Minutes

Cannot go wrong with India

Below is a captivating chart showcasing the illustrious journey of the Nifty 50 index over the past three decades.

Spanning from 1990 to the present day, this logarithmic chart provides invaluable insights into the market trends that have shaped India’s financial landscape.

Through minor fluctuations and short-term corrections, one overarching narrative emerges— . . . .

Reading Time : 3 Minutes

WeekendInvesting Daily Bytes

The Nifty index began the day with a promising gap up, reaching a new high beyond 22,750. However, the enthusiasm waned as the day progressed, with the market surrendering its initial gains to close slightly below the previous day’s level. This retreat suggests a moment of consolidation or pause, possibly due to the market digesting the rapid 1,000-point ascent in recent weeks.

Gold has gone from 6100 per gram, and we are now at 72 50. So lot of traders in the bullion market, they call it Sarafa bazaar, would be crushed because . . .

Reading Time : 4 Minutes