Another buoyant week and the Nifty Index has touched a new all-time high. Interestingly the trigger for such enthusiasm seems more mood-related than related to actual corporate results. What Corporate India’s big honchos say is immediately loved by the market participants. Evidence would be the 1-1-1 promise by Mukesh Ambani…
The US Fed Meet clearly signaled its intent on interest rates. While making all the right noises, the Fed still stopped short of what we thought it would do. The markets have some relief to gain from this position. Raising rates or the imminent prospect of it will certainly be…
The markets were rattled by notes from the recent Fed meeting. The prospect of an early end of stimulus and a probable rise in interest rates came out of these notes. This was not quite unexpected. But, the markets were fervently hoping that it would take much longer. Event risk…
Fear of missing out (FOMO) drives greed in every investor. In turn, greed pushes you to replicate trending behaviour and go beyond your comfort zone. But not all FOMO is bad. The market tends to look at such fear with a negative lens. The focus for you as an investor…
As we write, INDIA wins its first track and field Olympic gold medal. Gold has its own lure and the Indian psyche has a special place for it. This post is not about the medal but about the gold that it is associated with. As everything else gains value, gold…
The net FII selling for the year crossed ₹40,000 crores on Friday. The persistent selling by FII’s has not led to any significant correction in our markets. Evidently, the selling is getting absorbed and the markets are showing strength due to robust retail participation. When new investors enter markets in…
Hype has its own trajectory. Once you create it, it takes over and finds its own direction. IPO listing trades are hype induced, auto-piloted, and auto-destructed. But, there still is something structural about such trades. Take the Zomato IPO trade for example. Our regulation mandates QIB & Anchor investors to…
The market is in a mood to gamble. It wants more opportunities to play the IPO lottery. And, such exciting opportunities are aplenty. So when the investor is game and the investment bankers are ready to game, the game will go on. “What can change this mood?”, asked a concerned…
In the listed space, we have a very particular definition of a ‘quality’ company. We look for steady revenue, predictable profits, stable cash flows, and low leverage. Every investor is very comfortable with investing in these companies. In private equity, investors look for high growth and large market share, with…
The journey from contrarian to consensus seems to be getting accelerated in a market running dry on investment opportunities. Just a media event, a brokerage report or investment webinar are sufficient to grab heightened investor attention. The viral spread of investment ideas in social media is at an all-time high.…
The prospect of rising inflation in commodities is bringing out a very distinct response. Governments are discouraging commodity exports, taxing them, releasing their strategic reserves, and trying desperately to stabilise domestic prices. We see this in metals. And could also see this spread to other commodities, especially in food and…
A meeting of the Fed overturned the world’s expectations on interest rates. This means more than just a forecast. It signifies that the need to shift the trajectory of our expectations is now urgent. The markets immediately took notice of the messaging. The up move in the dollar indices, the…
