Investment decisions can be taken based on tax implications. There is a natural tendency among investors to be drawn to investments where they feel taxes are lower. When the tax concessions are withdrawn for certain investments, they tend to look less attractive to investors. Taxation is as much a driver…
The last week has caused a significant reset in our investing. We are once again worried about how global factors will come to hurt. Banking, which is the bed rock of every economy looks like the most rattled space in the west. When smaller banks look weak, they create a…
One week is a long time in global banking. Or, so it seems if one goes by the latest inflation and interest rate commentary of the federal reserve Chairman Jerome Powell. The Silicon Valley bank collapse has almost caused a setting for a rapid reset of the interest rate trajectory…
The recent data on India’s economic growth clearly point to a slowing economy. But, confidence metrics like the PMI data show a slightly divergent trend lending hope that the economy will regain momentum. Considering the global growth trends, the task of ramping up domestic growth in the near term looks…
The investment universe always creates a setting to invest in a particular asset class. COVID was a setting that enabled an equity wave. A wave usually builds up, rises and eventually descends. As the big primary wave descends in one asset class, a secondary wave takes wing. But secondary and…
The results season ended without much excitement. The markets lost interest in the results season as the Adani group related thoughts dominated mindshare. Companies also seem to be avoiding the market glare while announcing results. The companies preferred to keep things quiet, gradually lower Market expectations, reset future guidance and…
Most investors have been favouring equity for the last 2 years. Recency bias nudges investors to think that equity is the only asset class to bet on. It is this bias that kept investors from buying gold. Investors thought that gold would not do well. The post-COVID rally in cryptos…
The Adani fiasco, once again, tested our systemic preparedness, regulatory response, exchange mechanisms, and most importantly, market resilience. The good news is that we have done reasonably on all these critical aspects. Our markets remained stable and we did not see a contagion effect spread over into the broader market.…
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…
