Aggressive buying by FIIs causes super-surge in Sensex
Today’s super-surge in the stock markets (on the back of a massive surge on Friday, 20th September) stunned everyone.
Sonia Shenoy announced the historical moment in her typical succinct style.
Sensex opens with 1230 point gain
Nifty up 381 points now— Sonia Shenoy (@_soniashenoy) September 23, 2019
She also pointed out that the Nifty is now within touching distance of its record high of 12,103.
This means that once the Bulls take out this level, there will be no more resistance and the markets will be able to effortlessly coast in an upward trajectory.
Nifty now less than 4% away from record highs of 12103 hit on june 3rd
— Sonia Shenoy (@_soniashenoy) September 23, 2019
It is notable that the surge was caused by the fact that Foreign Institutional Investors (FIIs) bought a massive quantum of stocks, reiterating their confidence in NAMO and the Country.
Institutional activity today
FII shows us the money finally!!!
Massive buying!!Prov Cash Figs As 23/09 (Rs Cr)
*FII net buy 2684cr
*DII net buy 292cr#nifty #StockMarket #FinanceMinister— Nigel D'Souza (@Nigel__DSouza) September 23, 2019
Yeh kya ho raha hai?
Naturally, a number of Bulls who were hitherto walking around Dalal Street crestfallen, are now roaring like lions.
Basant Maheshwari is one of them.
“Yeh kya ho raha hai?” he yelled with delirious joy to his followers, thrilled at the super-surge of the stock markets.
Yeh kya ho raha hai? #Nifty
— Basant Maheshwari (@BMTheEquityDesk) September 23, 2019
He received a rapturous response from his army of followers, who are equally thrilled at the massive gains gushing into their portfolios.
Basant has good reason to be joyful because all the core stocks in his portfolio are surging like rockets.
Bajaj Finance, which is one of Basant’s core holdings and which was recommended to us as well, effortlessly surged past the level of 4000 and posted a massive gain of 9%.
Bajaj Finance. Cute na? ?
# No recommendations. Own it. https://t.co/95on1K5ep6
— Basant Maheshwari (@BMTheEquityDesk) May 17, 2019
Not just the results there’s something consistent about Bajaj Finance’s stock price also before and after the results. Own it no recommendations.? pic.twitter.com/nRGLTwPlFJ
— Basant Maheshwari (@BMTheEquityDesk) July 13, 2019
In fact, Basant had earlier revealed that he owns Bajaj Finance “to the neck“.
It is worth recalling that Ramesh Damani has regretted missing out on buying Bajaj Finance.
“Bajaj Finance was in my area of competence … it was in my backyard in Pune, I visit it maybe four times a year … I don’t know how I missed it … deeply regret missing it because such high-quality businesses are very rare to come by,” Ramesh Damani lamented, his eyes moist with tears.
No doubt, Bajaj Finance has to form a core part of every sensible investor’s portfolio.
What a class show from this company.. The #NBFC crisis was supposed to separate the men from the boys, and its happening now. 40% AUM growth with improving margins. Mgmt confident of sustaining the momentum. #stocks #earnings #Bajajfinance https://t.co/HKEqxzoS32
— Surabhi Upadhyay (@SurabhiUpadhyay) January 29, 2019
Avenue Supermarkets, alias D’Mart, which is also one of Basant’s big holdings, delighted by posting massive gains.
Basant had recommended the stock to us on the logic that “QUALITY helps you in bad times even as KACHRA sucks“.
No doubt, this prophecy has come true.
Basant Maheshwari, @BMTheEquityDesk , says Avenue Supermart is our top holding across portfolios
— CNBC-TV18 (@CNBCTV18Live) April 30, 2018
QUALITY helps you in bad times even as KACHRA sucks. The D-Mart stock is much like the D-Mart store. People who are in don't want to come out and the ones who are out can't get in. You can keep protesting but the stock is up 116% over listing price.
Disclaimer: We OWN it.
— Basant Maheshwari (@BMTheEquityDesk) February 23, 2018
Even Titan, which was recommended to us by Basant on the occasion of ET’s 10th Anniversary celebrations, has lived up to expectations and delighted investors (see Top 10 Stocks To Buy Now – Recommendations By Vijay Kedia, Basant Maheshwari, Porinju Veliyath Etc).
Fall in tax rate increases EPS and reduces P/E – which will lead to Nifty breaching 13,080
Basant has now done complicated number crunching about what the Nifty EPS would be after the tax rate cuts.
He has concluded that the slash in the tax rate will lead to a quantum jump in the EPS.
This in turn will depress the P/E ratio and make Indian stocks very attractive to foreign investors.
Naturally, the aggressive buying will cause the Nifty to surge to the level of 13,080 even by the most conservative estimate.
Post tax cuts the consolidated Nifty EPS increases by 10.5%; expands RoA/RoE – most critical determinant of the P/E ratio. If the P/E of 26.32 also moves up 10.5%; based on earnings increase then calculating from even these depressed levels gets us to a Nifty of 13,080. How soon? pic.twitter.com/5nOiM3XpDS
— Basant Maheshwari (@BMTheEquityDesk) September 22, 2019
For a company paying 35% tax earlier now 25.17% the PAT will jump by 15.12% . As this isn’t a guidance but an increased cash flow till eternity the P/E even if it expands by the same ‘if not more’ should lead to a stock price move of (1.1512 x 1.1512)-1=32.52%. Lot more to come?
— Basant Maheshwari (@BMTheEquityDesk) September 23, 2019
Basant also hinted that we may reach this momentous milestone by Diwali 2019, which is just a few weeks later.
Looking forward for a dhamekedaar Diwali !???
— Basant Maheshwari (@BMTheEquityDesk) September 22, 2019
Brokerages also hike Sensex target
Basant’s analysis is corroborated by the analysis of the brokerages.
Morgan Stanley has projected the Sensex at an eye-popping 45000 by June 2020 while Goldman Sachs has raised the NIFTY target to 13200.
Sensex, nifty target upgrades pouring in from brokerages this morning!
CITI raises march 2020 sensex target to 40500
Goldman Sachs raises NIFTY target to 13200 from 12500
Morgan Stanley raises Sensex target to 45000 by Jun2020
Nomura Raises March 2020 Nifty Target To 12545
— Sonia Shenoy (@_soniashenoy) September 23, 2019
Can anyone please tell what are stocks holding by Basant Maheshwari PMS and how to know the holdings
TCI express. Suven life sciences. Fineotex chemicals. These are his personal and family owned stocks. Absolute multibaggers.
So called pundits are back on the back of 10% rally. One can pay any price for Quality is not acceptable for me personally. D-Mart owned by BM is one such example.