The rising froth in the PSU space only showcases the extremities of investment behaviour. We are prone to swing to the other extreme when we remain too long at one extreme. This is exactly what we see in the PSU trade. Cut to 2001. We were just recovering from the…
Searching actively for new ideas in a broadly overvalued market does not mean compromising on our investment principles. Active pursuit of investment opportunities is a constant activity for investors, professionals and individuals alike. There is no escaping that activity. But performing that activity responsibly is the duty of every one…
When it is very easy for companies to raise capital, it is also the best time for investors to take out capital. The excessive liquidity sloshing all over a sector or theme makes it possible to both raise capital as well as release capital. What we are seeing in our…
Expectation setting is a very intrinsic part of investing. Setting our expectations correctly prepares us better to face market volatility. This is all the more crucial when we exit a hugely productive year of investing. The natural tendency would be to expect a similar year after a hugely successful one.…
What works in one year rarely works in the next. If an asset class performs well for two consecutive years, its capacity to perform well in the third is relatively limited. Only under conditions of euphoria do you see such performances happen. Looking back at 2023, it belonged to small…
FII buying, when done at high velocity, causes a sudden market reset. Sentiment reverses swiftly. The market’s attention shifts to focus intensely on what the FII’s are buying. Selling slows down in the parts of the market seeing FII buying. Buying gathers momentum in FII favourites. Momentum gets induced in…
Nobody wants to be under-invested in equity right now. The visibility on the political front changed the market view of many market participants, of both experienced and new entrant genres. The fear is that liquidity will make it even more difficult to invest in the market, and waiting for a…
With the current madness of the IPO market, I am reminded of something I wrote in 2012. Here is that piece. IPO and stock investing are almost synonymous to the investor. Investors view IPOs as the most preferred entry point into the stock market. The reasons are historic. IPOs had…
The week saw IPOs collect Rs. 3.67 Lakh Crores. This clearly signals a euphoric response to IPOs from Indian investors. The investor appetite for equity seems unrelenting even as other asset classes take a back seat. This would mean that companies waiting on the sidelines to IPO will now hasten…
Knowing when to accelerate, decelerate, and pause your investments in equity is very critical for every investor. Investors are always looking to accelerate their investments in equity. In fact, investors want to accelerate their investments when markets are trading at elevated levels. Investors are more willing to invest their money…
Samvat 2079 was a very interesting one in many ways. It saw investor wealth surge significantly. It also saw performance in gold & silver. It saw a resurgence in demand for high-end real estate. Luxury consumption saw its best year in a long time. Such a strong year usually cannot…
Relief rallies in a falling market can be extremely deceptive. They give us a false sense of confidence. They are sharp, swift and sudden. They take us by surprise and excite us enough to believe in the strength of the market. And, when we begin to believe that these relief…