DTX30: Attaining Historical Feats

MUMBAI, India - Jan. 7, 2016 - PRLog -- DTX30 – PTI Press Release Copy

There are only few who can swim against the tide & achieve something that usually looks unfeasible to others. Those who manage to accomplish that are highly regarded and respected. And when someone does that for a benefit of a larger section of the society, they eventually become leaders. One such revolutionary initiative was started by Dalal Times in the month of January, 2015 by creating an innovative index (DTX30) for Indian equity markets. It was a time when the Indian equity markets were highly volatile and market participants were grappling in an uncertain and directionless market. And what was even worse was the fact that, while the indices were moving northwards, investors felt short-changed in terms of their portfolio returns. This clearly indicated one important factor: Indices are not reflecting exact investor sentiments. The basic premise of the word ‘index’ is to reflect the investor sentiment and the state of the country’s economy. If the basic premise was not holding true, then there was something certainly amiss.

This scenario gave birth to a revolutionary index called Dalal Times Index 30 or DTX30. In just a brief period of 12 months the index has proved its mettle by outperforming the benchmark indices by a significant margin. Just to quantify, while the outperformance over Sensex has been more than 947 basis points or 9.47 percentage points, DTX30 has managed to beat the Nifty by 857 basis points or 8.57 percentage points. In uncertain markets, when others were struggling to keep afloat, DTX30 proved that in-depth research and logical approach will always keep you ahead of the curve.

DTX30

DTX30 is an index made up of 30 constituents with a basic premise of weighing the constituents based on their financial performance rather than just the market capitalisation. In a nutshell, a company would form a part of DTX30 index only on the basis of merit and not because of its market cap. The problem with the approach of market capitalisation stems from some stocks being overvalued and others being undervalued at any given point in time. A market capitalisation index gives too much weight to the overvalued components and too little to the undervalued ones. That is the crux of the problem. Since DTX30 focuses on financial merit rather than the market cap, it resulted in many undervalued stocks getting higher weightages as they have more potential for growth and vice-versa.

DTX30 started with 30 constituents having equal weight of 1 and a base of 1000 as on January 1, 2015. As a practice, regular evaluation of financial performance of the stocks would result in changes in weightage. If we take a look at the last 12-month performance, the weight of many non-performing counters has reduced, while it has gone up for the ones performing consistently. And as stated earlier, with outperformance over the Benchmark Indices, DTX30 strategy stands vindicated. DTX30 is a ready reckoner for those who want to invest in quality companies and maximize their returns. For instance, based on our monthly evaluation of Index, investors can take cues on which stocks to invest in.

Through our monthly updates on DTX30 in Dalal Times Magazine, we had categorically provided guidance on expected financial performance. With our in-depth research ability to understand the markets, we have hit the bull’s eye. So far DTX30 has managed to predict many underperformances and outperformances of companies much earlier that the others could. Be it the expected underperformance of few IT companies or even automobile sales figures, DTX30 always kept its readers ahead of the curve.

Apart from this the DTX30, write ups also focused on new investments strategies. To put it into perspective, when most of the experts were asking investors to stay away from the markets on account of volatility, DTX30 write ups suggested looking at it as an opportunity to buy quality stocks at lower levels. In one of such article, the concepts of “pricing the markets” rather than “timing the markets” was also explained. In a nut shell, DTX30 has not only provided better returns, as compared to benchmark indices, it has also helped its followers to understand the different investment philosophies.

DTX30 is just the beginning. The juggernaut of research Dalal Times will continue to innovate. With a slew of offerings like ‘Dalal Times Magazine’ – The Voice Of Indian Stock Markets; & www.dalaltimes.com - Our innovative website, Dalal Times is here to guide the investors in every possible manner.

The brand aspires to alway stand true its tagline of “We Define Markets”. While these are already established products from the Dalal Times group, more are in store.

Dalal Times will strive hard with its endeavor to turn every investor into an informed investor and maximizing their profits.

About Dalal Times

“An investment in knowledge pays the best interest." ~ Benjamin Franklin

With the vision to turn every investor into an informed investor, Kerala-based entrepreneur Praveen Pathiyil founded Dalal Times in August 2014.

Our mission is to become the world’s most trusted and credible financial brand, with products that give cutting edge and precise analysis of news affecting the stock markets, economy and thereby your money and investments.

We at Dalal Times want to create a niche within the industry and stay true to our motto “We Define Markets”

Magazine: Dalal Times Magazine is a monthly publication backed by a team of handpicked editors & research analysts with an aim to keep you ahead of the curve standing true to its tagline of Voice of the Indian Stock Market.

Website: Dalaltimes.com is a fast-paced information and comprehensive analysis network dealing with finance, business and general news from India and across the globe.