Archive: November 1, 2021

A New Beginning for Your Investment Journey in the New Year: Muhurat Investment

The festive spirit is just setting in. While bringing joy and celebration, the festive season marks an auspicious occasion for new beginnings. As the starting of a new financial year in the Hindu calendar, it is believed that investments made during this time would yield profitable results. Other than buying gold and other precious metals, people also invest in stocks. Every year, on Diwali, the stock exchanges open for a one-hour session, popularly known as the Muhurat, beyond the usual market hours. If you are new to investments, this is the perfect “Muhurat” to kickstart your financial journey, not just by trading, but through investing on the Auspicious Day.

The investment broking apps and websites on this day make stepping into the capital market simple. The emerging Fintech platforms have, further, made the process hassle-free for the tech-savvy millennials and GenZ. All you need is a smartphone and an internet connection to open your Demat account and start investing in the stock market.

Let’s take a look at some of the significant benefits of investing in the stock market:

Potential long-term returns

Investing in the stock market holds great potential of delivering considerable returns. Compared to other asset classes like bonds and fixed deposits, stocks generate higher post-tax investment gains over a longer period. If your entry point is favorable, the returns can be even greater in a shorter span of time. More importantly, stocks have a proven track record of delivering significantly higher nominal returns above inflation vs. other asset classes. Besides this, most companies pay a dividend amount to the investors every year. Think of it as an additional gain that you can have while investing in stocks.

High liquidity

One of the most important aspects of investing in the stock market is the high level of liquidity. As opposed to other means of investments, stocks can be easily converted to cash anytime. In India, two major stock exchanges – National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) – deal with high-volume trade daily. It facilitates high liquidity in the stock market. As a result, the new-age investors can buy and sell stocks knowing that they can cash them whenever they want, at the mere click of a button.

Flexibility of making investments

Stock markets provide a wide range of investment options for investors like systematic investment plans in stocks. It is helpful, especially for those starting their investment journey in the capital market. Most beginners look for smaller investments keeping in mind the risk factors. This is where stock markets provide flexibility. If you are looking to invest, your stockbroker can help you simply select the stocks as per your budget and preference, using advanced technology such as Artificial Intelligence and Machine Learning. Besides this, making investments in the stock market is not a time-bound commitment. You can do it at your own pace and convenience, buying at dips and selling when its high.

Gain from a flourishing economy

By investing in the stock market, you can directly reap the benefits of a booming economy as the revenue generated by the companies increases multi-fold. It further increases the value of the companies, thereby improving their share prices. As a result, the value of your investments in the stock market will also increase.

Final Note

Investing in the stock market offers secure and transparent processes while bringing long-term yields. More importantly it is valuable tool to use to beat inflation when it comes to goal planning. The emerging tech-enabled platforms have made exploring investment opportunities, trading and investing, and keeping track of the capital market trends easier, even for beginners. It’s never too late to start investing. This year the stock exchanges would be celebrating Muhurat between 6:15 pm and 7:15 pm on November 4. So, gear up and add a little spark to your financial growth this festive season by beginning your investment journey. Buy and gift shares to your loved ones as a Shagun, this Diwali!

63% of consumers spending more this festive season: Axis My India

With 63% of consumers spending more this festive season, spike expected in the sale of non-essential items, according to Axis My India – CSI Survey for November

Net score has improved by +7 and +2 for essential and non-essential spending respectively

• Over 10430 people surveyed 62% is from rural India while 38% is from urban India
• Overall household spending has increased for 63% of families surge by 7 percentage points from last month
• 36% of the consumers are planning to go beyond small-ticket purchases
• 50% of families reflect increase spends on essentials items, 18% of households reported an increase in Non-essential purchases
• A majority, 22% still prefers to park their money in savings account, 4% relies on Gold, 40% still don’t invest and interestingly still 2% park their money in post office savings

Mumbai, 1st November 2021: Axis My India, a leading consumer data intelligence company, released its latest findings of the India Consumer Sentiment Index (CSI), a monthly analysis of consumer perception on a wide range of issues. According to the survey, the percentage of consumer spending across essential-have increased, while spending on discretionary products has remained the same. Consumers are further planning to go beyond smaller purchases; 24% are looking to spend on household or personal items like white goods, furniture, electronics and jewellery this Diwali

The November net CSI score, calculated by percentage increase minus percentage decrease in sentiment, was recorded at +9, up from +7 last month and rising at a constant pace over the last three months, indicative of a positive shift in consumer consumption metrics.

The sentiment analysis delves into 5 relevant sub-indices – Overall household spending, spending on essential and non-essential items, spending on healthcare, media consumption habits & mobility trends.

This month, Axis My India’s Sentiment Index also delved deeper to understand consumers’ view on varied issues of national interest. These include privatisation of loss-making public sector companies like that of Air India, views on economic recovery by 2022, alternatives to rising fuel prices, investment preferences, sentiments around Diwali and on brand advertisement placements.

The surveys were carried out via Computer-Aided Telephonic Interviews with a sample size of 10430 people. 62% belonged from Rural India while 38% belonged from urban counterparts.

Commenting on the October report, Pradeep Gupta, CMD, Axis My India, said, “With the festivities at its peak, one can easily witness consumer’s excitement in terms of loosening their purse strings for varied expenses and experiences. While Diwali has triggered spending on products of personal indulgence (like 2-wheeler/4-wheelers or jewellery) and household items, the upcoming festivities and enthusiastic consumer sentiment will further set the momentum for the last half of this year. In addition, one can also witness a transition in terms of preferences amongst consumers’ like opting for EVs or cheering for privatisation of loss making companies. The growth of digital as a medium of advertising overtaking Print & just after TV reflects the change in media consumption habits which was triggered by the pandemic. Lastly, our survey shows that a vast majority of India is still not investing in this age of cryptocurrencies, it would be interesting to see how financial players beyond traditional banks can capture and convert their interests for investments using varied instruments.”

Key findings:

• Overall household spending has increased for 63% of families which reflects a 7% increase from the last month. This increase is highest in Northern India.
• The increase in spending on essentials like personal care & household items stands at 50% reflecting a surge by 5%. The net score which was +20 last month has increased to +27 this month. The growth in Rural India is slightly higher as compared to Urban markets.
• Spends on non-essential & discretionary products like AC, Car, Refrigerator has increased for 18% of families. For 73% spends on non-essential purchases remain the same which reflects an uptick of 3% from last month. The non-essentials November net score therefore lies at +9. The trend on spends on discretionary products reflect a fine balance between caution and indulgence.
• With more exposure to outside activities, importance of health bounced back quickly. Consumption on health-related items increased for 47% of families as compared to 44% last month. The health score which has a negative connotation i.e. the lesser the spends on health items the better the sentiments, has a net score value of -27.
• Consumption of media remains the same for a majority of 48% families and increased for 25% of the family, reflecting an overall Net score of -2 as compared to base value of 0 for the previous month.
• Mobility net score reflects a constant improvement over the last four months. 88% families said that they are going out the same or more on getaways/staycations /mall/restaurants, with travel bans being lifted and double vaccination providing easier movement opportunities. The overall mobility score is at -4 which is an improvement over last month which was at -5. This reflects slow but consistent progress in people’s sentiments for engaging in out of home activities

On topics of current national interest:

• While the long awaited sale of Air India to the Tata group reflected a hopeful future for the airline. Axis My India further gauged consumer’s sentiment on whether or not the government should privatise other loss making public sector companies. 46% is in agreement to privatisation of such companies while 36% disagreed with this view.
• When asked if economy/livelihood and business is expected to bounce back by January 2022, 41% believes that the same is possible and Southern India being more optimistic with 54% agreeing to this.
• With rising prices fuel being a concern, 48% are optimistic of shifting to electric vehicles wherein 33% and 15% said that they will consider buying a 2-wheeler and 4-wheeler respectively in this segment. The younger age group of 18-35 have a more likelihood, with 53% in agreement to an EV shift.
• In terms of brand advertisement placements, 44% and 38% of the consumers said that they have majorly seen ads on Television and on Digital platforms respectively. While only 11% and 7% of the audience believe that they have seen ads on Print or Outdoor. This reflects the changing media consumption habit and the surge both in Digital consumption & advertising. This digital growth is led by 26-35 yr audience.
• Sharing their views on financial planning, a majority of 23% still prefers to park their money in savings account, while a combined 12% prefers to invest in Fixed Deposits, Shares/stock market and mutual funds. Gold is still seen as a reliable investment option for 4% of consumers. 40% of the audience still don’t invest and interestingly 2% still save their money in post offices.
• Gauging views around the Diwali festivities, Axis My India, further discovered that 36% of the consumers are planning to go beyond small-ticket purchases this festive season. While 24% are looking to spend on household or personal items like White Goods (AC, TV, Washing Machine, Refrigerator etc.), furniture, electronics and jewellery; 9% is looking to buy a 4-Wheeler or a 2-Wheeler. Further from a purely sentimental outlook, 59% of the consumers reflect the view of a more hopeful and cheerful Diwali this year!

What is the Significance of Muhurat Trading?

By Vikas Singhania CEO at TradeSmart

Muhurat Trading started back in 1957 on the BSE and in 1992 on the NSE as a one-hour window termed as Muhurat Trading as it is performed after LaxmiPujan on the day of Diwali. Considered as an auspicious time for traders to enter the market, many investors think that the planets are aligned during the Muharat occasion in such a way that trading done during this time is free of the influence of bad forces, and anyone investing in the market at this period is more likely to have a profitable outcome.

The Bombay Stock Exchange and National Stock Exchange decide the timing of Muhurat Trading each year, and according to the belief, whoever trades during this one hour has a better chance of accumulating wealth and prospering throughout the year.

This year, stock exchanges will hold the customary one-hour special ‘Muhurat’ trading between 6:15 p.m. and 7:15 p.m. on 4th November. The block deal session will take place from 5.45 p.m. to 6 p.m and the pre-open session will begin at 6 p.m. and end at 6:08 p.m.

On the Muhurat trading day, the Sensex usually closes higher. In addition to stock exchanges, commodity exchanges offer Muhurat trading for investors. For the business community, the new fiscal year begins with Diwali. The business owners perform the ‘Chopda or Sharda Puja’ in which all the old account books or ledgers are closed and new ones are opened.

Traditionally, it has been one of the most auspicious times to trade and garner profits to set a prosperous tone to new financial beginnings and goals. For someone who has never invested in stocks before or never been into the trading industry, this could be the right opportunity to give it a good start and earn a high ROI.

While the Muhurat Trading practice started more than 60 years ago, it still is not known by most Indians and is a lost opportunity to make smart money by trading enthusiasts. This trend has flourished through the years amongst the Trading community, however, it has a lot of untapped potential to increase numbers and volumes of trade. Millions of millennials and Gen Z Indian population are unaware of this incredible opportunity, and being in this segment, we aim to introduce them to this opportune concept.