Economy and Business

From the CEO’s Desk Dear Investors, “The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.”- Peter Lynch. In the past three decades, the capital markets have faced many adversities and, from all events, the markets have emerged stronger than ever, and it will do so this time too. The silver lining of the Covid-19 crisis is the dramatic fall in equity  valuations, which enables investor to buy quality stocks at rates that, have traditionally contributed to long-term sustained rebounds. For equities, April was a bounce-back month; global markets recovered sharply from the lows of March, as the central banks and governments around the world have come out with a slew of monetary and fiscal measures to curb economic downturns. FY21 started on a volatile note for the equities and other risky asset classes, with India and many world economies remaining...

Indian Equity Market ·         Indian markets continued to close in red for the sixth consecutive week. BSE Sensex and Nifty 50 fell ~0.3% and ~1%, respectively, however the Ø losses were trimmed by the stimulus measures announced by the Reserve bank of India in the form of repo rate cut repo rate by 75 basis points (bps) to 4.4% and economic stimulus measure announced by the Finance Minister Nirmala Sitharaman in the form of 1.7 lakh crore relief package for the poor and migrant workers in the country to fight the economic fallout from the coronavirus pandemic.   ·         Going forward, the growth in number of COVID-19 cases among other factors such as the movement of rupees, crude oil prices, foreign Ø currency inflows and outflows will continue to determine the forward-looking market pattern. ·         We expect the trading range for Nifty between 7800 -9000 in th...

Individual investors in Punjab have placed their trust in equity the most, Karvy Private Wealth said on Wednesday. "Individual investors in Punjab have opted for a higher allocation to equity products in their mutual fund portfolio at 68.11 percent, as compared to the national average of 64 percent," the wealth management arm of Karvy Group said in a statement while quoting its India wealth report 2019. Chandigarh, Ludhiana, Amritsar and Jalandhar have all recorded a higher equity share in total assets under management than the national average, the statement said. "Keeping in mind the volatility in the markets, term deposits continue to remain a safe bet for investors. The overall growth rate in deposits is close to the national growth rate. Amongst the cities in Punjab, Chandigarh recorded the highest year on year growth at 12.12 percent, followed by Amritsar at 11.39 percent," it further said. Karvy Private Wealth CEO Abhijit Bhave said direct equ...

Indian Equity Summary- ·          Global and domestic equity markets remained tepid on the back of rising concerns about the rapid spread of Covid-19. Indian benchmark Ø indices extended losses for the seventh consecutive week as the BSE Sensex and Nifty 50 fell 7.46% and 6.66% respectively .Investor sentiments were also dented by the downgrading of India's growth forecast by Fitch ratings for the current fiscal to a 30-year low of 2 per cent, from 5.1 per cent projected earlier. Sector indices like Oil & Gas, Healthcare and FMCG were the only gainers amongst all the other major sectoral indices.   ·          On the positive side a rise in coal, cement and electricity production, India's eight infrastructure industries expanded at an 11-month high in Ø February, while the Met had forecasted that the southwest monsoon is likely to get a boost this year, as the El Nino, which sometimes disrup...

Indian Equity Summary-   ·          Domestic equity markets gained during a truncated trading week and closed in the green after 7 weekly losses in a row. Benchmark indices, Ø Sensex closed at Rs 31159, surging by 12.93% and Nifty closed up by 12.72% at 9111 on WoW basis. Sentiments were also lifted by positive FPI/FII inflows of RS 2462 Crore recorded in the week ending 9th April as compared to outflows of Rs 10,131 in the previous week. Sectorally, massive rally was witnessed in Auto sector while other top gaining sectors include banking, healthcare, metals and consumer durable .   ·          Further, global cues also impacted the market as the major oil producers agreed on their biggest-ever cut in oil production. ·          Going forward, the growth in number of COVID-19 cases among other factors such as the movement of rupees, crude oil prices,...