The RBI’s monetary policy announcement did not do much to improve the market sentiment. The clear shift in stance, willingness to be accommodative, the confidence on inflation management and a decisive bend to act and do more if necessary were all simply not enough to reassure markets. The markets seem…
A new cabinet took office last week. Economic data for the last year was released shortly after. Clearly, the new government has no honeymoon period. It must hit the ground running. Even though the challenges are clear and everyone knows what needs to be done, the way forward is still…
The last week saw turbulence in the guidance of a global Indian IT giant. They marked their guidance down taking their stock down sharply. Domestic IT companies had however not dropped their guidance in their earnings calls done weeks earlier. When one company, and especially a large one, drops its…
Three phases of polling are over. We are past the midway mark. Pollsters are slowly spotting a decisive trend. They won’t put out numbers due to electoral regulations. Meanwhile, the markets seem to be responding to domestic corporate results and global trends. Oil is rising. The US markets are about…
Ask any experienced market participant about prevailing valuations and the response will be more or less the same. Experienced investors find it difficult to spot value in the current market. Yet, people still want to continue investing. The lack of alternatives in other asset classes and the need to beat…
The first phase of polling is behind us. The fate of 91 Lok Sabha seats is already sealed. The second phase comes up next week. Predictably, this is the most keenly fought election. It is a battle for survival. While political parties pit themselves head to head against each other,…
Elections bring about a speculative element about what they could mean for the stock market. The stock market is fickle and reacts to all news surrounding elections. If we take a step back to look at historical trends, elections seem to have no long-lasting impact on the stock market. Rewinding…
A new financial year has begun on a positive note. Flows seem to be improving from both domestic and foreign investors. Indices are setting themselves up for new highs. Yet, index valuations already look very much on the higher side of the band. Growth seems to be stable but inadequate…
Investment Strategy: Monetary policy plays an important role in determining investment strategy. At this juncture, high quality short to medium term funds could work well for conservative investors. Contact us to know more about your investment options. Market Outlook: The RBI reduced the repo rate by 0.25% in its…
Another financial year draws to a close. For investors, it was a forgettable year. While domestic investors showed sustained commitment to Indian equities, FIIs sold Indian equities for most of calendar year 2018 and turned buyers in 2019. Valuations kept moderating through the financial year and investors kept showing enthusiasm…
Election fever is just about to begin. This election is probably unique for its competitive intensity. On one side, we have a strong coalition with a clear leader. On the other, there is a strong opposition of divided forces to that leader. While the impact of a united opposition could…
Elections have a way of mixing up the market’s calculus. During elections, markets always try to second guess outcomes, check if there is something for everybody, and crave participation in a potential uptrend. Most people forget that sentiment driven rallies may end in a temporary downtrend. An adverse election verdict…
