Whether you’re a seasoned intra-day trader or a fresher looking to invest a small portion of their pay cheque into best artificial intelligence stocks for a long term investment, the month of September brings with it several exciting opportunities in Indian stock markets. Watch out some best ai stocks to invest in this month!
And to save you the hassle of having to find these exciting investment opportunities, we at Jarvis Invest have put together this little list of the five best stocks to watch in September 2024.
Bajaj Finance, Bajaj Finserv
The coming week is a great time to invest in Bajaj Finance, Bajaj FinServ, and Bajaj Auto Ltd, if you haven’t already. Why? That’s because these three companies are promoters in another one of Bajaj group’s companies – Bajaj Housing Finance, which is opening its IPO for subscription on September 9th. A non-banking financial company, Bajaj Housing Finance offers loans to individuals and corporate institutions looking to invest in new homes or commercial spaces, or renovate their current space.
The IPO is a book-built issue worth Rs 6,560 crores, out of which Rs 3,560 crores worth of shares are a fresh issue, whereas Rs 3,000 crore worth are an offer for sale. Further details regarding the price band, lot size, and more are expected to be announced by September 3rd, 2024. However, as per multiple reports, the grey market premium on the shares is as much as Rs 42 already.
As per Bajaj Housing Finance’s DRHP, only “Individuals and HUFs who are public equity shareholders of our Promoters……” are eligible to subscribe to the IPO.
Premier Energies
The IPO for Premier Energies opened on August 27th and closed on August 29th last month. Now, per reports, the IPO was subscribed as much as 74.38 times over, with bids for over 332 crore equity shares against the 4.46 crores on offer. The retail investor category saw a subscription of as much as 7.69 times over, while non-institutional investors’ quota was subscribed as much as 50.04 times. The QIB, or Qualified Institutional Buyers quota received subscriptions of about 216 times over, whereas even ESOPs were subscribed to 11.43 times over.
While the stock is expected to be listed on the Bombay Stock Exchange and National Stock Exchange September 3rd, 2024, stock market observers have reported that the stock is already commanding a strong premium of Rs 420 in the grey market. This would mean that the stock is already trading at about Rs 875 per share in the grey market, as against the issue price of Rs 450.
Reliance Industries Ltd
Reliance Industries chairman Mukesh Ambani announced a bonus share issue for the company at its 47th Annual General Meeting (AGM) held on August 27th, at a potential 1:1 ratio. Should the same be approved at the meeting of the board of directors on September 5th, the benefit for investors is two-fold.
First off, this acts as a reward to the existing shareholders in the company, and serves as an assurance of the company’s profitability in the future. Secondly, the subsequent decrease in the share prices of the company, while it may seem to put a dampener on things, also helps make it more accessible to new investors in the market.
Biocon Pharma Ltd
Biocon Pharma Ltd has just received approval from the U.S. Food and Drug Administration (FDA) for its Sacubitril and Valsartan tablets in 24mg/26mg, 49mg/51mg and 91mg/103mg strengths. The tablets, in combination, are used to treat chronic heart failures in adult patients as well as those as young as a year old, which helps reduce the risk of deaths. As a result of the same, shares of the company may rally significantly in September. This is also backed by the fact that the company reported a consolidated net profit of Rs 659.7 crore for the quarter ending June 30, FY24-25, as against Rs 101.4 crore from the corresponding period a year ago (A six-fold increase). As a result, Biocon will definitely be one of the most important stocks to watch out for in September, not just in the pharmaceutical sector, but the broader market as well.
InterGlobe Aviation Ltd
According to reports, promoters of India’s largest airline by market share – Indigo – Rakesh Gangwal and the Chinkerpoo Family Trust are looking to share up to 1.47 crore shares in the airline via block deals. If this does go through, the deal could be valued at as much as Rs 6,750 crores. The deals may take place at a discounted rate of Rs 4,593 per share, which is a discounted rate of about 5.5% from InterGlobe Aviation’s current share price. As of June 30th, the Chinkerpoo Family Trust held a 13.49% stake in InterGlobe Aviation, while Rakesh Gangwal himself held a 5.89% share. Data shows that the company’s stake in the Indian aviation industry is about 62%, followed by Air India at approximately 10%.
Now, it is important to bear in mind that broader market trends in each of these sectors will have a bearing on the upward growth of these stocks. Therefore, before diving into the Indian stock market, it’s imperative to conduct thorough research. Here are a few key tips and tricks to keep in mind.
Understanding the Company
Conduct research on every company’s fundamentals, business models, and financial health over a five-year period or more.
Market Analysis
Assessing overall market trends, economic indicators, and industry specific factors is just as important as in-depth research into a company’s fundamentals, as they can also provide valuable insights into how any given stock’s price may move in the short or long term.
Risk Assessment
Identifying potential risks and rewards associated with each investment is crucial for making informed decisions.
Diversification
Lastly and most importantly, always ensure you have a diversified portfolio, making investments across sectors and in the form of different financial instruments. These can include equity, mutual funds, commodities, currency, real estate, as well as alternative forms of investments such as cryptocurrency, to help mitigate the risk of the underperformance of any one of them, on your broader portfolio.
And to help with the same, it is crucial to figure out your risk tolerance, as well as your investment goals whether in the short or long run. Luckily, here, there is Jarvis Invest to help you out. One of the leading stock market advisory services in India, Jarvis Invest leverages the power of AI based stock trading to help put together the perfect investment portfolio for you.
Happy investing!