The Indian markets started 2018 with an exaggerated sense of optimism. Clearly, headline numbers were lagging the markets. As the market moves towards the end of a financial year, that exaggeration is swiftly disappearing and getting replaced by fear. We could see an overreaction on the other side too. And,…
A not so innocuous news report by a global brokerage set us thinking about where we are headed as a market. ” $1.2 billion waiting to get into midcaps says CLSA”. The logic behind this premise interested us even more than the actual premise. The premise was that mutual fund…
The FIIs have been persistent sellers of Indian equities. DIIs have bought steadily and supported the market. This explains the index not losing much despite heavy selling by FIIs. The regular domestic inflows are helping DIIs hold the market at higher levels. In specific areas, like midcaps, we see funds…
The recent weeks are seeing the trend turn in several areas. Investment flows are looking very different with the persistent selling of FIIs in Indian equity. News flows are also not looking great in February. For instance, first we had the budget levied long term capital gains tax on equities.…
”Trouble comes in threes” goes the proverb. So, when the budget threw capital gains tax at our stock markets, we kind of knew that it was not going to be the end of bad news. The U.S markets quickly went into a steep fall on two sessions, sending global markets…
Is the dream run over? Have markets crashed or have they paused? One hears anxious investors simply abandon their confidence with every fall in stock indices. As the years advance and public participation in stock markets grow stronger, our patience for corrections simply isn’t enough. Our impatience grows on us,…
Selling is never easy. Much as investors love profits and die to make more of it, when it comes to taking it, they hate to press the exit button. The overwhelming emotion when the finger heads towards the exit button is fear. “What if you miss out on more profits?…
The new year began well for the stock market. Both, domestic and foreign investors were buyers of equity. Global sentiment is predicted to be positive in 2018. Clearly, sentiment is a strong driver. Liquidity is seconding sentiment. We see the inflows into Indian equity at an all-time high. The amount of…
As we bid adieu to a wonderful investing year and welcome a new one, it’s time to pause and ruminate a bit. It is that time when we set our expectations. We actually need to assess how expectations played out in 2017. Investment performance significantly outplayed our expectations in 2017.…
The last week of a calendar year is usually the time when global institutional investors take a break. When they return in January, their investment actions are often radically different from those made in December. Just like a test batsman takes a fresh guard after a lunch recess, fund managers take a fresh view of things in the New…
If you are an Indian investor, asking the right questions now is the most important thing. The logic is simple – when the going is too good, it is important to question the sustainability of good times. The stock markets have done extremely well in 2017. This is evidenced in…
