In an effort to deepen debt markets, SEBI has mandated that large corporates should raise 25% of their borrowings from the debt market. Large corporates are listed companies who have outstanding long-term debt of more than Rs. 100 Crores and a credit rating of at least AA. When it comes…
The markets were expected to fall. Electoral reversals and the surprise resignation of the RBI governor came together to stun markets. Surprisingly, our market shunned these fears and swiftly moved on. Why did this happen? Indian macros are clearly improving – low inflation, soft oil prices, and better rupee valuation…
The extension of single party rule in India is now clearly off our radar. The 2019 general elections will be won on the strength of alliances. Obviously, the ruling party will need to reboot its strategy while the opposition suddenly seems to have begun its preparation earlier. As investors, we…
The FIIs are back. November clearly showed a change of mind. The DIIs continue to receive money from domestic investors. It is in this scenario that we go into the last phase of state elections. If the verdict in the five states is not too adverse, we could see a…
Forward-looking statements are always a problem. Companies are not supposed to issue statements which could potentially mislead investors. Investment managers habitually exercise restraint in this area. They are very careful in their communication about future investment performance. Mostly, the commentary is merely sentiment related and generic. Signals about the future…
The rapid decline in oil, over the past few weeks, has really mixed it up for the markets. Investors who took a certain view of the macros just a month ago when oil hit $85 are now forced to hurriedly review their position. This must be quite harrowing as investment…
Being a Contrarian is never easy. Most of the time, the Contrarian makes choices that are very different from the consensus. Given that consensus is far more powerful, a Contrarian has to withstand time and performance pressures for a very long time. Only if he holds steady can he benefit…
The month of October ended on a positive note for the markets. Trends seem to be indicating that the economy is doing reasonably well. Firstly, the GST collections crossed 1 lakh crore once again. Oil prices softened from the menacing levels it hit earlier in the month. Sales of the…
Have you ever tended to a garden? As a gardener, you would ensure that your plants get enough sunlight, water, and nutrition. But, there is an inherent expectation that your garden will flourish. Imagine you received a handful of seeds. You were told that these seeds would eventually grow into…
Recency bias hurts the most when a bull market ends. We tend to buy investment ideas which did very well in the recent past. This happens across the board. The stocks in favour remain the ones which hit recent highs and gained the most in the past year. We tend…
The crack in US markets was long coming. Lest we forget, this is America’s longest bull run in history and their economic problems are far from over. So, what caused this euphoria? Liquidity has been at the core of America’s economic problems and solutions. For a decade, America has been…
The stock markets capitulated this week. The fears were largely overdone. The sharp dip in OMCs clearly indicates the symptom. The markets are clearly gripped by the fear of loss. And, investors dump every stock where they fear further loss. And the very risk aversion they display is causing huge…
