Skip to main content

ADVICE FOR THE WISE – JUNE 2020

FROM THE CEO’s DESK

Dear Investors, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful”- Warren Buffet. The Covid19 curve is flattening globally. The central banks and governments around the world came out with a slew of monetary and fiscal measures, which ensured that stress on credit markets was swiftly arrested and credit spreads stabilized. As the global economy progressively opens up, there is a increasing evidence of business activity picking up and step by step moving in the direction of normalisation. Partial resumption of financial activities globally had already casted its mirrored image on equity markets. Global equity is staging a "V"-shaped recovery, whilst domestic equity indices are trading above March lows by approximately 33 percent. Corrections in equity market throws possibilities to buy quality stocks at cheaper valuations. We foresee this correction and the year 2020 from an investment opportunity perspective, in place of worry, as the risk – reward ratio in current scenario is favourable for equity investments. On the domestic front, the GOIs announcement of ~Rs 20 lakh crore stimulus package, represents around 10 percent of Indian GDP. Focus being on small business tax cuts as well as domestic manufacturing incentives and support to rural economy, which will pave a stronger foundation for the Indian economy going ahead. In an effort to support the ailing economy from the negative impact of the Covid-19 pandemic, the RBI on 22nd May announced a series of measures, along with a cut in repo and reverse rate by 40bps to 4% and 3.35%. In a span of just 2 months MPC had now reduced the policy rate by 115 bps. The advancing of its MPC meet and the additional measures in shape of liquidity expansion, support to exports and imports and continuation of accommodative stance displays RBIs agility and readiness to mitigate the negative effect of COVID-19 along with focus on growth. We expect the impact of earnings slowdown and economic downturn to be largely priced in, while the impact of strong policy stimulus is gradually emerging. Going forward, we foresee emergence of robust rural demand, lower CAD, stable rupee, subdued inflation print and lower interest rate scenario, which may act as tailwinds for the domestic equity market.


Read more at  http://www.karvywealth.com/data/sites/1/skins/karvywealth/Download_media_report.aspx?FileName=4E8E9B01-0F35-46D9-88CD-F30BCA789751|5199145

Labels

Labels:
Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

CURRENCY DERIVATIVES

Karvy Currency Derivatives Segment, a specialized group vertical within Karvy Stock Broking Limited, has been established in 2008 to cater to the growing needs of corporate houses to manage currency exchange rate risk. With the changing dynamics and increasing volatility of exchange rates across the globe, companies exposed to currency risk face the challenge of maintaining continued profit margins. Currency Derivatives would be one of the best options to manage any related exchange rate risk and be free from the worries of market uncertainties. At Karvy Currency Derivatives Segment (CDS), we provide customized hedging strategies for importers, exporters and companies with foreign exchange exposure. We offer forex advisory and brokerage service for the Indian currency derivative market, and provide a robust and reliable online trading platform. Currency Derivatives Segment – Karvy Stock Broking Limited is an active member of the National Stock Exchange (NSE), Metropolitan Stock Ex...
Post a Comment
Read more

KARVY GROUP INITIATES CORPORATE RESTRUCTURING

Appoints Mr. Amitabh Chaturvedi as Group CEO – Financial Services Mumbai, December 31, 2019: The Karvy Group announced today that it is in the process of restructuring its overall business into two verticals - Financial Services and Non- Financial Services. As a part of this process, the company has also initiated a major management reshuffle. The move is expected to improve the overall governance and functioning across the enterprise. Mr. C Parthasarathy, Chairman, Karvy Group, announced the appointment of the industry veteran Mr. Amitabh Chaturvedi as Group CEO - Financial services with a mandate to completely overhaul the governance processes, ensure best practices and to bring in greater fiduciary discipline to these businesses. He has previously been associated with leading organizations such as Dhanalakshmi Bank, Reliance AMC, ICICI and the Essel Group and has over 30 years of experience in the financial services space. Speaking on this development, Mr. C Parthas...
Post a Comment
Read more

‘There will be no impact on Karvy Private Wealth after Karvy Stock Broking episode’

Abhijit Bhave, CEO, Karvy Private Wealth said that while the wealth management company is a division of Karvy Stock Broking, it is not directly impacted by the current episode. In the aftermath of the crisis at Karvy Stock Broking, many investors have been questioning the involvement of the other Karvy Group companies like Karvy Private Wealth. Karvy Private Wealth is in the business of offering wealth management solutions to HNI, UHNI & family office clients.  Market regulator SEBI recently banned Karvy Stock Broking from taking on new clients after it discovered a fraud of Rs.2,000 crore. To understand what would be the impact on its investors Cafemutual spoke to Abhijit Bhave, CEO, Karvy Wealth, who said, “Unlike some other banks and wealth management firms, who primarily focus on investments in products manufactured by their own group companies, nearly all our clients have a large proportion of their investments in third party products. So there would not be too ...
Post a Comment
Read more