We are going to see a lot of challenges in equity investing. As the Government presents its full budget for this year, the markets are a little bit edgy. They’re not sure of what the Government is going to deliver in its pre-election budget. Many investors fear that this budget…
The coming week witnesses one of the most important follow-on public offers. Raising capital from the public is never easy for an existing company. Raising very large sums is certainly a huge risk. The Adani group is seeking to raise large sums through a follow-on public offer. This issue is…
Early trends in the result season indicate an interesting phenomenon. Companies will broadly live up to their guidance and investor expectations, but valuations seem to be running ahead of what companies can deliver. Given the gradual tightening of valuations, the problem for the markets is not going to arise from…
When opportunity knocks, what do investors do? Most begin to think that the opportunity will get even better. The result: they wait endlessly. A small section believes in not waiting because it does not know when to end the wait. So, accepting ignorance leads this small section to make small…
The world economies are going through a lot of macroeconomic challenges. Growth is hard to come by for several developed counties. Inflation remains a challenge, and overcoming it is critical for countries to return to the growth path. India is relatively better placed in inflation management and growth. We should…
A sharp correction across the board is just what the doctor ordered. Corrections like these test investors’ conviction in equity as an asset class. They also reward investors who have the patience to participate in such corrections. Opportunity knocks on the doors of those who are willing to carry their…
As we near the end of a very difficult year for most investors, the mood seems to be a bit pensive. The markets have fallen after the hawkish stance of the US Federal Reserve. Markets expected the Fed to indicate no further interest rate hikes, but none of that has…
During COVID, doomsayers in the market believed that most public sector banks would go bust and that the Government had nothing in its arsenal to stop that. Gross NPAs were very high, and banks were coming to the lower end of capital adequacy ratios. There was no light at the…
December is here and the usual year-end exuberance has returned. We are seeing all-around participation by investors. FIIs, DIIs and retail seem to be on the lookout to buy new ideas which will perform in the coming year. Stocks which did not participate so far seem to be enjoying their…
A couple of months ago, FIIs were pulling out of Indian markets. Year to date, most broad-based global indices have lost value. Somehow the Nifty has managed to hold its own in this situation and is now trading at 18500 levels. Even though not much has changed on the macro…
When investors begin to believe in an asset, its value increases. Some investors seek analysis, a few performances, and others peer approval before they begin to truly believe. But building belief without a foundation will lead to a collapse. So, it’s no surprise that some investors have got the short…
In every country’s stock market, the company that holds the pole position is very critical for the overall market stability. India has seen this pole position fluctuate among various names. There was a time when FMCG majors help that place. Then, Reliance became the most valued company. TCS and Infosys…
