Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial

Expensive stocks, Zomato IPO and Gambling!


Today’s newsletter references to performance highlights of three of our It’s fascinating to see that the strategy that dominated everything else in 2020 has been lackluster while newer heroes have emerged in 2021. Yet another reminder about why it is imperative to diversify the portfolio across different strategies to navigate the markets that take its own course. All this and also some intriguing articles in the “Links we like” section at the end. Read on.

(Knock knock: We know you’re loving these newsletters. Let your friends know too! Just click ‘‘ and share away.)

Markets this week 🚦

IT stocks lead the pack on the back of the earnings season while Oil & Gas sector lag behind. And while we spent the week savoring the delicious Zomato IPO, the broader index inched up 1.3%.

Expensive stocks, Zomato IPO and Gambling!

Does buying expensive quality stocks work? 🤔

Our friend, , has seen a lot of market booms, busts, and stagnations. These are also extraordinary times when the Nifty PE ratio is at a high – thanks to the numerator that gets all the love from the markets and to the denominator that sulks with the economy. As a result, stocks are expensive. Maybe more expensive than they ever have been.

Here’s a timeless post from Capitalmind archives that provides some historical perspective, some more data crunching and a lot of food for thought.


Passive maybe the “in thing” but active stocking picking is still sexy! 🤙

June 2021 has been an interesting month where the benchmark indices were flat while few stocks continue to do well. The CM Focused portfolio hit a new lifetime high in June. The portfolio was up by 5.3% in June 2021 while Nifty returned 0.9%. The action however is in sectors like Paper, IT, Healthcare & Telecom.

The unlocking begins. Businesses are getting back on track while the fear of the third wave still exists. What’s in store and how are we positioned?

[Premium] Read: June – A month of slapshots for CM Focused & CM passive

The zing of the Zomato IPO! ⚡️

Finally, one of the most awaited initial public offerings of 2021 is here – Zomato Ltd. The company will be raising ₹ 9,375 crore, of which ₹ 9,000 crores will be a fresh issue, while the remaining an offer for sale from the oldest investor – Info Edge (India) Ltd.

The IPO would be the largest since March 2020, i.e., when SBI Cards raised close to ₹ 10,000 crore. Should you subscribe?

Read: Zomato IPO – Should You Place An Order To Buy Shares?

Woh Subah Kabhi To Aayegi 🌤

We had a green month after a three-month-long penance, the month of June saw a trend emerge on the indices on the upside, however, we are yet to scale mount 16k. The small and mid-caps are still leading the larger stocks, something we spoke about in last month’s update.

Let’s check out the performance of Chase’s strategy in the past month by starting up with a greek legend.


[Premium] The School of Slack 😎

We bring you the most insightful discussions from our slack community

  • Subscriber data for Telecom companies are out and here’s Soumeet Sarkar sharing a quick update. [link]
  • Watch out for daily chart threads on #trading-room for some great collaboration and analysis. [link]
  • Wait, what! Pension funds in the US buying homes now? [link]
  • Fun thread: ITC and the witty conversations it sparks. [link]

Links we Like

In this section, we bring you interesting links from across the internet

Join, probably, the best investment community in India.

Expensive stocks, Zomato IPO and Gambling!
Expensive stocks, Zomato IPO and Gambling!

(To help you take the plunge to premium, use code ‘ CMCOFFEE’ on the checkout page to avail a special discount of 15%)


Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial