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…
The Indian markets seem to be entering a very interesting phase. On the one hand, the interest in public sector stocks is rising due to investors’ focus on critical infrastructure sectors like railways and defence. On the other hand, the top-run public sector banks- SBI and Bank of Baroda have…
The best businesses can see very sharp swings in valuations. Just a small earnings disappointment, a moderating growth forecast and uncertainty on inflation have once again taught us a very simple lesson. This lesson has happened in the best of FAANG stocks. The markets have shown these marquee companies a…
Diwali to Diwali we have had a very sombre Samvat. We are entering the new Samvat on a note of caution. Our expectations are clearly running low. We sense trouble from global markets. We are aware that inflation must be tamed within a reasonable time horizon. We respect the unknown…
The story of King Canute goes that he stood in front of the tide demanding that the sea recede. This is a story of greater forces humbling power. The Federal Reserve’s messaging is clear: it wants full employment and inflation at 2%. But, higher interest rates and aggressive communications will…
The rupee closed at an all-time low of 82.32. Year to date, it has depreciated more than 7.5%. While the rupee’s performance is still better than global peers, it has become a cause for concern for FII. YTD, the FII and FPI have taken out 1.5 Lakh Crores from Indian…
The debate on whether our markets are completely coupled or can actually be decoupled with the US markets is an endless one. But, in our obsession with the global markets, we assume that anything that affects their economies will also affect us. Historically, a lot has happened in common or…
The market is reacting to the Federal Reserve’s Monetary Policy announcement. The Fed is keen on doing whatever it takes to bring inflation down to 2%. This commitment to raising rates (evidenced in the Fed’s dot plot) well into 2023 spooked US markets, and now the contagion is spreading. It…
The weakening of sentiment in the US markets is happening. We are witnessing home loans getting pricier, new starts in housing shrinking, inflation coming down month on month, and investors reacting very sharply to bad news. The sharp fall in stocks like FedEx and Adobe in a single trading session…
