Mid and small caps best performers, gold slumps in 1st quarter

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By Sanjeev Sharma
New Delhi, April 10 |
Mid and small cap stocks are the best performing asset class for the quarter ending March 2021 while gold is the worst performer.

Mid and small cap stocks delivered returns of 14 per cent in the quarter while gold under-performed with negative 11 per cent returns. Gold is the biggest under-performer for the first three months of 2021 vs. the other asset classes. Gold prices are down by 11 per cent in rupees and 10 per cent in US Dollar in the last three months. Apart from ‘Risk on’ trade, rising bond yields are now short term negative for the gold prices

As per Axis Securities, gold proved to be one of the best performing asset classes in 2020. In the last 10 years, Nifty outperformed the Emerging market in five years and developed market in four years.

The performance of smallcaps is highly volatile versus other asset classes. Small-cap ranked at the bottom in 2018 and 2019 and recovered sharply in 2020, outperforming the other asset classes in the first quarter of 2021.

NIFTY50 delivered a healthy 15 per cent return which was significantly better than the 2019 return of 12 per cent. While NIFTY Midcap 100 and Nifty Smallcap 100 delivered 22 per cent and 21 per cent returns respectively in 2020, the returns for mid and small-cap indices were negative in 2019.

“We expect the broad-based rally of 2020 to continue well into 2021 (already visible in Q12021) as we believe a strong earnings revival across the board is on the cards. A lower interest rate environment and higher fiscal spending will continue to support the equity markets,” Axis Securities said.

It said that asset allocation and sector rotation will be key to generate out-performance in 2021. An equity market is likely to be the best performing asset class for the next one to two years.

It said that trading at a 10 per cent premium to large caps From a valuation perspective, the midcaps look attractive vs. large caps. Historically, during the bull phase of 2017, midcaps were trading at a 45 per cent premium to large caps. The recent spate of IPOs and their success clearly indicates the appetite for mid and small-cap stocks, the report said.

Since November 2020, small and midcaps are picking up steam and they should deliver solid returns in 2021 as economic uncertainties will reduce and volatility will decline.

The report said that top 10 stocks domination is dwindling in the market. Since December 2017, Nifty has delivered a return of 40 per cent. Out of which, the top 10 stocks by free-float market cap have delivered a stellar return of 58 per cent while the remaining 40 stocks had delivered only 17 per cent. This divergence has started narrowing in recent months. Based on the top 10 stocks, the adjusted Nifty value works out to 16,647 while the remaining 40 would lead NIFTY to just 12,354. This indicates Nifty is better valued beyond the top 10 names. Long term risk rewards are better in the next 40 names vs. the top 10, the report said.

Broader rally since November and broad-based market performance was seen in the month of March despite higher volatility signifying intact overall risk appetite towards mid and small stocks. Stocks ranking from 101-200 rallied by 2 per cent in March, and 98 per cent in the last year which is superior to the large-cap performance.

Stronger FII flows since November continue to drive the momentum FIIs are net buyers; FIIs have added $7.8 billion while DIIs have pulled out $3.1 billion from the Indian equity market in the last 3 months. Since Jan 2020, FIIs have bought a massive amount of $30.9 billion while the DIIs have sold $8.6 billion from the Indian equity market. Highest ever FII inflows seen in the current financial year: $37 billion, higher than FY10/11/13 levels.

The fiscal year ended on a strong note for the equity markets with all the sectors delivering positive returns. The report said metals and IT registered the strongest gains while FMCG grew the slowest. Autos and Realty also delivered solid returns during the fiscal.

While FY21 was strong which was aided by cheap valuations and a low base, March performance was a mixed bag. The high beta sectors such as BFSI witnessed a profit booking while defensives such as FMCG and Pharma registered marginal gains.

The report said now the investors are betting higher on riskier assets like equity. Sentiments are improving further with increasing optimism driven by vaccine development and faster than expected economic recovery.

All these developments are keeping the gold prices under pressure. Based on these fundamental pressures, gold is the biggest under-performer for the first three months of 2021 vs. the other asset classes. Gold prices are down by 11 per cent in INR, and 10 per cent in USD in the last three months. Apart from ‘Risk on’ trade, rising bond yields are now short term negative for the gold prices, Fundamentally, Gold prices are inversely correlated with bond yields. However, gold will continue to attract investments to hedge risk against other asset classes.

As per the report, gold saw record inflow of 657 tonnes in the last one year ETF flows contributed significantly to the run-up of gold prices since the beginning of CY2020. ETF flows (in tonnes) jumped to 657 tonnes in the last one year, increased by 1.3x vs last year, in which major contribution done by North America. However, the pace of ETF investment has been moderated in recent months with outflow seen in the month of February for the third time in the last four months.

Global ETF’s had seen a loss of 2% holdings in February on account of a fell in gold prices and rising yields. Gold suddenly lost its momentum due to ‘Risk on’ trade in the global market amid positive development on the vaccine front. Equity markets are trending higher on account of relief from uncertainty over the US election and vaccination news and economic recovery. Nonetheless, a low-interest-rate environment and higher fiscal spending continue to attract gold investment, the report said.

(Sanjeev Sharma can be reached at Sanjeev.s@ians.in)

Source: IANS

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How to Apply Coconut Hair Oil : 5 Ways to Getting Nourished, Shiny Strands

How to Apply Coconut Hair Oil : 5 Ways to Getting Nourished, Shiny Strands

There are very few hair care ingredients that are as amazing and trusted as coconut oil. For centuries, coconut oil has been used as a hero ingredient and grandmothers of Indian households swear by it. The buttery, thick oil has managed to make quite an impression among the international fashionistas worried about the health of their hair as well.

Coconut oil brings to you an impressive resume of natural beauty advantages for both the scalp and hair.

If you haven’t yet discovered the wonderful benefits of coating your strands in coconut oil, you are probably wondering why this oil is considered a hair care mainstay. Keep reading to know how exactly coconut oil can nourish your hair and the best ways to apply it for brilliant results.

What is coconut hair oil good for?

How to Apply Coconut Hair Oil
How to Apply Coconut Hair Oil

Here, take a look at some of the reasons that make coconut oil reign supreme in the department of hair care.

  • The oil is super moisturizing for your hair strands. The low molecular weight of coconut oil allows it to easily penetrate the shaft of your hair and get absorbed quickly, much better than other oils.
  • The oil has a high moisture content naturally, and therefore, it is effective in conditioning and moisturizing the strands. The oil doesn’t just sit on top of it.
  • The oil will also help your hair to retain protein because it contains a specific type of fatty acid, known as lauric acid. Nick Stenson, a celebrity hairstylist and Matrix’s artistic director, says that strands hold to proteins better when they are coated in coconut hair oil.

If you need more reasons – coconut hair oil is affordable and found ubiquitously, and does not contain any chemicals.

How to apply coconut hair oil for maximum benefits?

The application of coconut oil to hair entirely depends on how you wish to use it. For instance, a deep conditioning hair mask needs a different application than a split end treatment or detangler.

You’ll find below 5 ways to apply coconut oil.

  1. As a treatment of the scalp

Are you interested in a tension-relieving, relaxing scalp massage? Sounds interesting, right? You can relieve your tensed scalp after a tough day of work by wetting the pads of your fingers with coconut oil. Apply the oil gently onto your scalp and massage it gently for a few minutes. This will help the coconut oil to moisturize your scalp and promote healthy hair growth. A relaxing scalp massage using coconut oil is going to make your hair follicles happy and this will result in speedier and also healthier hair growth.

The reason why scalp massages promote hair growth is because they encourage blood circulation. This helps in delivering your hair follicles all the essential nutrients and also oxygen.

  1. As a hair mask

Coconut oil for hair is known to work wonders when it comes to deep conditioning hair treatments. You can create a DIY at-home hair mask by melting a few tablespoons of the oil over low heat and then transferring the oil to a bowl. Section your hair to properly massage warm coconut oil into the roots of your hair and saturating your strands throughout the tips. After that, use a wide-toothed comb to run through your entire hair so that your hair detangles gently. Then, cover your hair with a warm towel or shower cap, and relax for ten to thirty minutes. You can use your regular or mild shampoo to wash out the oil. Make sure to rinse properly.

Remember not to sleep while you are relaxing. You need to wash out the oil to prevent any build-up.

  1. To define your curls more prominently

Coconut oil is a worthy styler and it can help you look your best. Even if you don’t have the right outfit for the day, your hair is surely going to make heads turn!

A lot of people are partial to wash-and-go or an air-dry. If you are one of them, you can slide the oil through the strands of your hair after taking a shower. The oil will help to define the pattern of your curl while also reducing frizz and moisturizing your hair.

If you want your curls to keep their spring, you can make use of coconut oil in between washes. Your curls will be replenished and have a beautiful shine.

  1. To prevent your hair from tangling or to detangle 

A physical barrier is required for all hair types before detangling the strands, especially for those who have more breakage-prone, drier hair. Coconut oil is a brilliant detangling hair care product that you can use to prevent your hair from breaking. You can apply warm oil or you can use a spray bottle to spritz oil on your hair before detangling.

  1. To treat split ends 

Honestly, you cannot mend split ends forever. There just isn’t a way. You can snip them from time to time, but you cannot say goodbye to them forever. Another way to manage your split end problem is by applying coconut hair oil products. The oil will help to seal the cuticle and make your hair look shinier, healthier, and also less brittle. You might even notice density to your strands, especially if you have been noticing that your hair is tapered toward the bottom and looking thin.

The takeaway

Do you think that your hair can benefit from the use of fatty-rich coconut hair oil? You can give it a try in any one of the 5 ways above. And if anybody was wondering, the oil can also be used straight up on your strands.

However, if you are allergic to coconut in general, you might want to stay away from using this oil. In such cases, applying the oil may result in causing irritation.

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