Trading holidays for the calendar year 2023.
The National Stock Exchange of India (NSE) has notified trading holidays for the calendar year 2022 as below:
Nifty’s Decade: 2030 Target at 50000.
In its recent technical outlook report, ICICI Direct stated that it sees Nifty 50 touching the 50,000 mark by 2030-end.
According to ICICI Direct's report, Indian equities are likely to display the same rhythm that the US and Nikkei did in 1990-2000 and 1980-1990, respectively, i.e. delivering a decadal move of 5x on headline indices.
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| image source Icici |
A decade ago, in December 2012, the Nifty 50 ranged between 5,800 to 5,900 levels. Taking into consideration the new lifetime high of 18,887.60 which was recorded on December 1, 2022, the benchmark has skyrocketed by a huge 13,017 or 222% in a decade.
But taking into consideration December 19, 2022 level, still Nifty 50 has witnessed robust growth of 12,491 or 211% from the 5,929.60 level on December 19, 2012.
Explaining the decadal cycle, ICICI Direct revealed that since its inception in 1979, the Sensex gained an average of 4x in each decade. From the CY20 close of 13981 (Nifty) similar projection leads to ~56,000.
However, the brokerage believes that such long-term trends often have to navigate through bouts of volatility.
India’s decade, ride with conviction.
What is iNAV in ETF?
Indicative net asset value (iNAV) is a measure of the intraday net asset value (NAV) of an investment. iNAV is reported approximately every 15 seconds. It gives investors a measure of the value of the investment throughout the day.
Net Asset Value (NAV) vs Indicative Net Asset Value (iNAV).
NAV represents the end-of-day value of a fund or an ETF. For example, Nifty bees NAV is 191.
iNAV represents the real-time value of a fund.
How iNAV is calculated?
As per above Nifty bees closing NAV is 191 and if Nifty 50 index opens 1% up the next day, the iNAV will be 191 + 1.91 or 192.91. This value changes every 15 seconds based on movement of the Nifty 50 index.
The iNAV price represents the “fair” cost of an ETF in real-time. iNAV allows investors/traders to compare the price of ETF on NSE when buying and selling them on the market. They should trade them at a price close to the iNAV value.
The above example is theoritical one. In reality, the prices will not trade at iNAV. Why?
There should be someone to provide liquidity for the ETFs in the market, only then investors/traders could buy and sell them. There is an entity called market markers or authorized participants, who provide liquidity on the stock exchanges.
Market makers are appointed by the AMC, providing continuous two-way quotes on the exchange, meaning they buy at the bid and sell at the offer. So, they provide buy quotes at lower than iNAV and sell quotes at higher than iNAV.
In the above example of iNAV 191, they will provide buy quote at 190.5 and sell quote at 191.5.
Hence investors cannot buy exactly at iNAV; buy at a premium and sell at a discount. The explanation given above is just an illustration, in real-time price difference could be smaller.
iNAV is available for international ETFs as well, but since the markets and live indices are not available, the iNAV is calculated based on previous day NAV + live futures prices of the indices.
iNAVs are available in the AMC websites and select brokers.
We all know and struggle with procrastination, particularly starting our investing journey.
Many of us know that it’s the best way for us to achieve our financial goals, but yet we still put off making our first investment.
A major reason we put off investing is because we’re "afraid of losing money."
This is known as "loss aversion", a cognitive bias in which we tend to prefer avoiding losses, even if it will give substantial profits in the future.
Change your thoughts about investing from “I’m afraid of losing money” to “I will definitely make money”.
This small shift in your mindset, can help you get over your inertia in investing.
It may have been a difficult first step to make, but once you do it, you’ll not regret starting your investing journey.
Do it now!
