Pune, 05th September 2023: Stoxbox, a subscription-based stockbroking platform for retail investors and a subsidiary of BP Wealth – one of India’s oldest stockbroking firms, believes in educating investors about the stock market and teaching them the skills required to ace the stock market and make their own trading calls confidently and independently.
Mr. Swapnil Shah, Director of Research said, “StoxBox is a Value Broker and our customers do not pay us brokerage. They only pay us for the Trading Calls (Guided Investing) and for other value-added services like mentoring and live trading by taking a monthly subscription of as low as Rs 499 per month. Customers can be peaceful and trust us fully that the advice and learning that is coming from StoxBox is only to help them make money. There is a conflict of interest in most of the current business models in the Indian Broking Industry for want of more revenue. We are addressing this very conflict by shifting focus away from transaction-based revenue.”
Commenting on the research philosophy, Mr. Manish Chowdhury, Head of Research said, “We believe in a bottom-up approach and a robust and standardized evaluation process. We prefer midcap companies with the potential to become larger midcap companies. Our evaluation criteria include factors such as strong business moats, visionary management, predictable cash flows, and comfortable relative valuations.”
The research team shared an in-depth view on the market, sectors and select stocks.
Stoxbox has a positive outlook on the Indian markets, citing various factors that contribute to the sustainable growth story. These factors include a growing manufacturing thrust, rising corporate profitability, robust domestic consumption, capex and loan book revival in the private sector, cleaner balance sheets, strong domestic flows, and changing geopolitical dynamics. In the medium term, Stoxbox anticipates bullish strength in the market, recommending investors to take advantage of dips and expecting the Nifty to continue its upward trend.
Specific Sectors for Medium to Long Term:
Stoxbox currently favors domestic themes over export-oriented sectors due to global economic uncertainties. They express optimism about the automobile sector, citing strong demand for passenger vehicles, easing supply chain issues, and expected growth in the commercial vehicle segment. The banking sector is also favored, with Stoxbox highlighting factors such as expected economic growth, capex thrust, and a revival in broad-based consumption as drivers for robust credit growth. They recommend banks with higher current and savings account (CASA) ratios, a larger deposit base, lower operational expenses, and a better return profile.
Upcoming Market Triggers:
Stoxbox acknowledges several events that may trigger market reactions in the short and medium-to-long term. These include the US Federal Reserve interest rate decisions, monsoon coverage in India especially the looming threat of an El Nino, state elections in Chhattisgarh, Madhya Pradesh, Rajasthan, and Telangana in the second half of 2023, Lok Sabha elections in 2024, and a probable economic growth slowdown in major global economies.