Shares of both Shriram Transport Finance and Mahindra & Mahindra Financial Services have rallied about 30 per cent in the past two weeks. With the benchmark indices hovering around lifetime highs, investors are looking for bottom-up ideas. Analysts say vehicle finance stocks can be attractive bets. “These companies are best positioned to leverage the overall revival in the economy. Also, supportive liquidity conditions, dip in the cost of capital, cyclical recovery, and a pick-up in rural demand are the key positive triggers,” said an analyst. The overall NBFC space has got de-rated following the IL&FS crisis and many stocks continue to trade at a discount to their long-term averages, he added.
Investors looking to invest in cryptocurrencies as a hedge from equities should think twice. Bitcoin
has shown a positive correlation with equities in the past year. The cryptocurrency gained 305 per cent in 2020 and is up 65 per cent YTD. It is near record highs and is trading at above $47,700 levels currently. The S&P 500, on the other hand, gained 16 per cent last year and is up 4 per cent in 2021 to 3,900 levels, also a record high. Bitcoin
has fallen in tandem with the benchmark index a few times as well — both asset classes slumped in September, for instance, in the run-up to the US presidential elections.