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As interest rates in India have peaked and look unlikely to fall soon, debt mutual fund schemes are attracting investors. Retail holdings of such funds have boomed with a compound annual growth rate of around 35% over the past three years. In contrast, equity schemes have seen inflows of only INR7.2bn ($105,303) over the past two months, while debt fund schemes brought in INR1.5tn over the same period. Liquid funds have attracted INR1.08tn over the past 60 days, with more coming in due to their suitability for short-term requirements.

The last time El Nino hit the world strongly was back to back in 2014 and 2015, with the impact of the second year being stronger.India had 12% lower rains in 2014 which led to almost 5% fall in grain production in 2015 at 252 MT. Interestingly 2013 (F2014) was a record production year for agriculture with the industry producing 265mt, which led to increase in inventory buffer.

Six out of the top-10 most valued domestic firms in India added a total of Rs 1,13,703.82 crore in market valuation last week, with Reliance Industries being the highest gainer. While the BSE benchmark rose 1.21%, Reliance Industries gained Rs 63,259.05 crore taking its valuation to Rs 17,42,415.47 crore. Companies like ITC, Infosys, HDFC, Bharti Airtel, and Hindustan Unilever Limited were the gainers. However, TCS, HDFC Bank, ICICI Bank, and State Bank of India faced erosion of their market valuations last week.

Several companies including HUL, Tata Steel, and Raymond will trade ex-dividend while Indiamart Intermesh and Blue Star will trade ex-bonus this week. The ex-dividend date is typically one or two working days before the record date, when the equity share price of a company is adjusted for dividend payouts. Automobile Corporation, Craftsman Automation, Futuristic Solutions, and Hindustan Unilever will trade ex-dividend on 19th June, while Bank of India, Ceat, Cera Sanitaryware, Meghmani Finechem, Newgen Software, and Sagar Cements will trade ex-dividend the next day.

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Remember in the basics of the Options course, we mentioned that premium price is made up of two factors: Intrinsic value and Extrinsic value, and how Extrinsic value is complicated to understand.

Veteran stock market investors in India have picked Restaurant Brands Asia (RBA), which owns a chain of restaurants including Burger King, as the next big investment opportunity. The stock is not currently in the limelight, however RBA is poised to grow faster and create cash flows in the future. The stock is currently trading at Rs 107-108, a price that experts believe makes it a great opportunity for conservative value investors. Analysts have also made recommendations for other stocks to watch in the smallcap and multibagger sectors.

The COVID-19 crisis has boosted digitalization and increased awareness of the equity markets among Indians, resulting in a dramatic increase in the number of demat accounts and mutual fund SIP books.

Penny stocks have outperformed benchmark indices in India, with 636 penny stocks giving index-beating returns in the past week. Companies with market capitalisations of less than INR500 crore ($67m) have performed well in a positive market backdrop, with 60 penny stocks providing returns of 20-66%. Mid-cap and micro-cap stocks are performing better than large-caps as 30 penny stocks had returns in the range of 20-30% in the past week. The broader market is making gains while benchmark indices are slowly rising towards lifetime highs. Investors are urged to keep an eye on macro trends and the progress of the monsoon season.

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