Quick Edit:
A sharp upswing. Rising indices. Yet, many investors find their portfolios lagging. Why? Portfolios are to be designed keeping the future in mind. Given the dynamic nature of economic activity, businesses which performed well a few years back are struggling now.
If your portfolio was built in 2008 and has remained static since then, it may turn out to be an under performer. Market leadership is constantly shifting and investment portfolios must recognize and reflect these changes. The portfolio must respond to change in the economic environment through appropriate restructuring. Investment choices must be forward looking and reflect the present performance expectations. Is your investment portfolio current?
Impact:
A new settlement started on a negative note. This settlement happens to be the budget settlement. Expectations from the budget are either low or carry a pessimistic bent. Investors believe that the populist camp in the congress party will continue to push for welfare schemes that the government can ill afford to support.
Food security is another Damocles sword hanging on future fiscal deficits. Rising oil prices are a major worry. With such mounting subsidy problems facing the finance minister, investors expect him to do very little. This could reflect in the market moves in the coming fortnight. The results from the UP elections will also keep the markets on the edge during the week.
Investors crave for better political insulation from ‘Trinamool’ vagaries and are betting on a realignment post UP elections at the centre. This should see a volatile trading week ahead and investors must have a game plan to take advantage of the volatility.
