CapitalVia Global Research Limited (Investment Advisor) expands business in southern region

Chennai, April 12^th, 2021: CapitalVia Global Research Limited (Investment Advisor) is a pure play financial market research and consulting company. As a pioneer, CapitalVia is the first one to introduce the term 'Investment Advisory industry' in India and have been credited with introducing the same as a prominent factor in Stock Trading.

Gaurav Garg, Head of Research, CapitalVia Global research Limited

Market Preview So Far:

• So far, in CY 2021, Emerging Markets, especially Asia has underperformed. However, Smoother passage of legislative reforms and more fiscal stimulus is likely to help emerging markets in catching up during coming months.
• Domestic markets took a breather and mostly saw a correction in March with frontline and broader indices remaining in a corrective phase.
• Small cap index was marginally negative. Sectoral indices including Auto, Capital goods and IT were top gainers followed by midcap index. Barring these, most sectoral indices declined, and some saw little change.
• Slow rollout of vaccination in Europe, political turbulence in Italy, concerns around the spread of a different and more potent strain of the coronavirus and resultant lockdown also dampened market sentiments.
• Foreign portfolio investors were net buyers- Consumption indicators (electronics, car sales, petrol demand etc.) continued to improve.
• Under industrial indicators major improvements were in engineering exports, diesel demand and goods by air.

Supporting the Digital India campaign launched by the Government of India by making the country digitally improved in the field of technology, CapitalVia is taking a step in upgrading the Investment Advisory Space by introducing its customer portal “CapitalVia” App.  It is designed to enable seamless customer experience by providing real time advice & solving grievance through mobile application.

Gaurav Garg, Head of Research, CapitalVia Global research Limited said- The application will largely help the Tier 1 & Tier 2 cities to upgrade themselves on the right investment options and stock market by providing knowledge center and consumption of recommendations through one click. The digital portal will act as normalizing the digital investments in the state and build trust amongst the investors.

Gaurav Garg added on expanding in southern region and choose Tamil Nadu for the Equity Market:

1. 8% Demat: 3rd highest contribution towards total Demat accounts (after Maharashtra 22% & Gujarat which is 11%)

2. Highest Growth : CAGR of around 13% over last 5 years.

3. Per Capita Income: 26% higher than India’s per capita

4. 3rd Richest State : Tamil Nadu is India’s second-largest economy despite being its sixth most populous state and among the country’s 12 largest states. It has the third highest GDP per capita and is the most urbanised state as well as among the most industrialised with a strong manufacturing base and a large services sector.

5. Fastest Growing state: For the third consecutive year, Tamil Nadu registered a higher economic growth rate than the national average. At 8.03 per cent, it was double the all-India average of 4.2 per cent in 2019-20.

6. Penetration: 4% demat holders against India average of 3%

Market Outlook 2021 – Equity

(3 Key Factors in Favor )

1. Global Economic Recovery: Following an unprecedented collapse in the year 2020, global economy is projected to grow at 5.5% in 2021 and 4.5% in 2022 (IMF WEO – Jan 2021).

2. Industrial Improvement: Under industrial indicators major improvements were in engineering exports, diesel demand and goods by air.

3. Improvement in Consumption: Stronger recovery in the economy post relaxation of lockdown. Consumption indicators (electronics, car sales, petrol demand etc.) continued to improve     

 (3 Key Risk Factors)

1. Challenges in Vaccine Distribution: Risks to global growth estimates emanate from potential challenges in vaccine distribution.

2. New Virus Strain: Emergence of new virus strain and resultant regional lockdowns, among others.

3. Inflationary risks: A sharper than anticipated global recovery could cause inflationary risks if stimulus measures continue well into the recovery. This could in turn make a case for policy tightening and could result in an abrupt correction in risk-asset prices.

Debt Market View

1. The US 10-Year treasury yield jumped to a year high at 1.60% before cooling off to close the month at 1.41%.

2. Indian bond yields also witnessed similar trend as the 10-Year Government Bond yield surged by about 32 basis points to end the month at 6.23%.

Commodity View

Crude : Crude oil prices in this year after the OPEC’s (Organization of the Petroleum Exporting Countries) top producer, Saudi Arabia decided to cut crude production since February.

Gold : For medium term, we view that Gold have made their bottom, Cool down in the bond yield and weakens in the dollar will support the Gold Price, It can move towards 48600 in first half of the FY21-22.

Base Metal : Due to economic recovery demand for Base Metal increasing and sentiment for all the base metal is positive. All the major government is spending money for Infrastructure will be key driver for the base metal for the FY21-22

****