India’s Sensex Hits Yet Another All-Time Record High

Posted by on

Indian equity markets reached yet another all-time record high this Friday. The benchmark Sensex index reached a high of 84,694 and ended the day at 84,544 with an year-to-date return of 17%. In the past 5 years, the index has more than doubled. Sensex’s return so far this year puts it among the top four global indices as shown in the chart below. Only the NASDAQ and S&P 500 are ahead of the Sensex.European indices such as the DAX and CAC are lagging the amazing returns of the US and Indian markets.

Click to enlarge

Source: India’s Nifty, Sensex outperform most global markets, behind only Wall Street, Reuters

The following chart shows the YTD and 5-year price return of the Sensex:

Year-to-date return:

Click to enlarge

5-Year return:

Source: Google Finance

At current levels, the P/E ratio on the Sensex is 23.99 according to Exchange data. Indian stocks are richly valued though the ratio is less than the figure reached in 2021-22. Should the US economy enter a recession, global equities including emerging markets like the Indian market would be adversely impacted.

For additional historical data and charts on Sensex annual returns go here.

Related ETFs and ETNs:

  • WisdomTree India Earnings (EPI)
  • The iShares MSCI India ETF (INDA)
  • PowerShares India (PIN)

Disclosure: No positions

Why invest in Electric Utility Stocks Now

Posted by on

The utility sector is usually considered as a stable sector that offers slow or no growth and strong dividends. For this reason it is one of the sectors preferred by income investors. The industry is regulated and its very rare for a company to fail. One such case was the crash of the Hawaiian Electric Industries stock a while ago. According to a recent article I came across at Capital Group the utility sector could be the next growth. The authors of the piece discuss their theory based on the following three reasons:

  • Aging electric grid needs an overhaul
  • Utilities are powering the AI boom
  • Made in America: Reshoring ignites energy demand

A brief excerpt from the article:

Here’s why utilities, long known as reliable dividend payers, shouldn’t be ignored by growth investors.

Source: 3 reasons utilities could be the next growth sector, Capital Group

I agree with the premise of the article. The entire piece is worth a read. Investors looking for growth can consider investing in utility stocks.

The following chart shows the year-to-date price return of the iShares US Utilities ETF( IDU) trading on the US markets:

Click to enlarge

Source: Google Finance

For investors interested in individual stocks, the following list offers a good starting point for further research:

1.Company: Consolidated Edison Inc. (ED)
Current Dividend Yield: 3.21%

2.Company: NRG Energy (NRG)
Current Dividend Yield: 1.87%

3.Company: Edison International (EIX)
Current Dividend Yield: 3.65%

4.Company: Portland General Elect. Co. (POR)
Current Dividend Yield: 4.19%

5.Company: Sempra (SRE)
Current Dividend Yield: 2.98%

6.Company: Southern Co. (SO)
Current Dividend Yield: 3.21%

7.Company: Duke Energy Corp. (DUK)
Current Dividend Yield: 3.59%

8.Company: Entergy Corp. (ETR)
Current Dividend Yield: 3.50%

9.Company: NextEra Energy, Inc. (NEE)
Current Dividend Yield: 2.49%

10.Company: American Electric Power Co., Inc. (AEP)
Current Dividend Yield: 3.45%

Note: Dividend yields noted above are as of Sept 20, 2024. Data is known to be accurate from sources used. Please use your own due diligence before making any investment decisions.

Disclosure: Long NEE

Number of Listed Companies in the World and Companies Per Capita: Chart

Posted by on

There are about 50,000 companies trading on the organized exchanges of the world according to an article by Ashley Owen of OwenAnalytics. China has the highest number of companies at over 5,000 followed by Canada and the US. On a per capita basis, Canada tops the ranking at 113 per million followed by Australia at 75 companies per million population. The main reason for the high number listings in the relatively small economies of these countries is that both are resource-based economies and thousands of mining companies trade on the exchanges.

Click to enlarge

Source: Australia: Most listed stocks per capita and biggest gamblers in the world

Suez Canal vs. Cape of Good Hope

Posted by on

Earlier this Houthi rebels in Yemen attacked ships on the Red Sea. This caused many shipping firms to re-re-route their ships around the Cape of Good Hope instead of via the Suez Canal. According to LSEG Shipping Research, the alternative route takes an extra up to two weeks and adds an additional fuel costs of an estimated $1.0 million per sailing on trade between Europe and Asia.

The following map shows the Suez Canal vs. Cape of Good Hope route:

Click to enlarge

Source: Red Sea shipping crisis worsens after Israel-Houthi attacks, Deutsche Welle

U.S. Crude Oil Production by State: Chart

Posted by on

The U.S. is one of the large crude oil producing countries in the world. According to the EIA, the top five countries in 2022 were the US, Saudi Arabia, Russia,Canada and Iraq.

In the US, crude oil produced in 32 states and offshore. However just five states accounted for about 72% of the total production in 2022. These states are Texas, New Mexico, North Dakota, Colorado and Alaska. The chart below crude oil production by state in that year:

Click to enlarge


Source: Oil and petroleum products explained -Where our oil comes from, US EIA