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In the world of investing, having a sound portfolio strategy is not enough. Investors focus and spend too much time on selection issues – which fund to buy and which stock to sell. Execution gaps combined with dysfunctional investor behaviours nearly always lead to poor outcomes and may derail a well-conceived investment plan.

Under the guidance of the State Council, regulators including the Ministry of Finance are discussing a draft proposal, the report said, citing people familiar with the matter.

“We like defence and renewables but they have had a great run. Any correction in markets will bring some of these stock prices to more palatable levels in terms of dipping our toes again. So, there is nothing really I want to be jumping into right now because markets are still looking overbought despite the recent correction.”

“From an asset allocation perspective, a slightly longer-term answer to your question is yes, inflation is likely to be stickier and hence, while rates might have peaked, coming down might take some time. The asset allocation needs to be thought about in that context.”

Tata Motors stock has seen strong growth, especially in the last five to ten years, when the company completely transformed itself into a go-to option for Indian car buyers, with a series of launches in the affordable and luxury segment. In the last five years, the stock price has risen by 144%.

The website of AMC Repo lists 128 eligible issuers, which include the State Bank of India, Adani Ports and Special Economic Zone, Bharat Petroleum Corporation, HDFC Bank, Reliance Industries, Indian Oil Corporation, Larsen & Toubro, Shriram Finance, Tata Steel and Power Finance Corporation.

The investors who looked beyond Nifty have been handsomely rewarded. While Nifty has moved 1,736 points since the last Independence Day, which is a 9.8% gain, (Friday, August 12, 2022), the Nifty MidCap 100 has rallied 6,964 points or 22.61% and Nifty SmallCap 100 has traversed 2,241 points or 23.78%.

Nifty 100 stocks such as Polycab, PNB and Adani Power are trading at a lower PE than their respective industry PE.

“Sourav Ganguly was Maharaja of the off side but not necessarily that great a player on the on side. But he developed that onside in order to become a successful player. If he had remained Maharaja of the off side, then he would not have been as successful cricketer as he was. We need to be mimicking Sourav Ganguly in mastering the on side.”

Eight stocks have corrected more than 50% from their respective 52-week highs, and three of the biggest losers in this list are Adani Group firms - Adani Green Energy, Adani Energy Solutions, and Adani Total Gas. These stocks were down 62-84% from their 52-week highs. While Adani Wilmar was down 55% from its 52-week high, Adani Power corrected more than 33%, and Adani Enterprises about 39%.