Economy and Business

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 p...

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...

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,...

Indian Equity Summary-Benchmark indices Sensex and Nifty closed in the green for the second consecutive week in line with the global key equity indices. Nifty 50 and Ø Sensex rose by 1.7% and 1.4% respectively. Sectorally, all the sectors indices barring Consumer durable and IT closed in green. BSE Metal, BSE Power and BSE Bankex were the top performers and rose by 6.65%, 4.99%, and 3.41% respectively.   Investor sentiments were also lifted by the announcement of further relief package of TLTRO by RBI targeted towards small and medium-sized Ø financial institutions including NBFCs and MFIs. The reverse repo rate has been cut by another 25bps to 3.75% to incentivize the banks to lend.   India VIX continues to cool off and has dropped to ~42.59 on Friday. It has dropped by ~32% in 1 month.  Ø   Going forward, the growth in the number of COVID-19 cases among other factors such as the movement of rupees, crude oil prices, foreign Ø currency inflows and outflows wi...

It is not how exotic your portfolio is but how well it is structured to meet your objectives and give you regular returns whatever the economic environment. Karvy , with over 25 years’ expertise in the financial markets, is offering comprehensive wealth management solutions for its customers through Karvy Private Wealth (KPW). Our wealth managers provide direction to a client’s financial decisions, enabling him achieve his financial and life goals. As a wealth manager, we collate the relevant financial information and life goals of the client, assess his risk tolerance level, examine his current financial status, and identify a strategy to fulfill his goals. Wealth management   is an all-encompassing service, providing comprehensive research-based advisory along with convenient and personalized investment execution. KPW offers an unmatched product basket, ranging from debt, equity, mutual funds, insurance, derivatives, commodities, structured products, international funds...

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...

Don’t put all your eggs in one basket. Diversify your investments in a wide range of financial products and ensure safety and growth of your portfolio. WHAT ARE FINANCIAL PRODUCTS? Securities and investments created to provide buyers and sellers with short term or long term financial gains are known as financial products. These allow liquidity to circulate in an economy and risk to be spread. Many of the financial products are in the form of contracts that you can negotiate on financial markets. The contracts stipulate cash movement at present and in future, depending on conditions stated. Financial products can help us grow the amount of money we have to meet various financial goals, such as retirement, children’s education, marriage and so on. Before you invest in any financial product, you should learn about any potential risks, limitations, costs as well as other characteristics of the products. TYPES OF FINANCIAL PRODUCTS The number of financial products and servic...

It is not how exotic your portfolio is but how well it is structured to meet your objectives and give you regular returns whatever the economic environment. Karvy, with over 25 years’ expertise in the financial markets, is offering comprehensive wealth management solutions for its customers through Karvy Private Wealth (KPW). Our wealth managers provide direction to a client’s financial decisions, enabling him achieve his financial and life goals. As a wealth manager, we collate the relevant financial information and life goals of the client, assess his risk tolerance level, examine his current financial status, and identify a strategy to fulfill his goals. Wealth management is an all-encompassing service, providing comprehensive research-based advisory along with convenient and personalized investment execution. KPW offers an unmatched product basket, ranging from debt, equity, mutual funds, insurance, derivatives, commodities, structured products, international funds, art fund...

Here at  Karvy Private Wealth,  we offer comprehensive solutions in the fixed income segment. We suggest debt investment options of various tenures and risk-reward profiles suitable to your portfolio. DEBT MUTUAL FUNDS ·  Gilt Funds:  Gilt Funds invest in government securities of medium to long-term maturities. There is no risk of default and liquidity is considerably higher in case of government securities. ·  Income Funds:  Income funds are total return products, which means, the return is made up of both interest income and capital appreciation or depreciation, depending upon profits or losses. The value of bond held in a long term portfolio, changes with changes in interest rates. ·  Monthly Income Plans:  Monthly Income Plans are debt oriented hybrid funds which has around 70%-85% of the portfolio in debt and rest in equity ·  Liquid Funds:  Liquid funds invest in safer short-term instruments such as Treasury Bills, Cert...

In an exclusive interview with BW Businessworld, Abhijit Bhave, CEO, Karvy Private Wealth talks about UHNI investors and more Over the years, have you observed any discernible behavioral differences in the way UHNI’s approach their investments/portfolios?  UHNIs are more diligent in allocating funds and are more informed. Transparency in fees and charges is expected and Investors are more cost-conscious. The investment decision-making process for UHNI investors has become more sophisticated, and asset allocation is of prime importance.  How would you describe the attitude of the majority of UHNI’s towards risk-taking?  Trends indicate a shift of portfolio exposure towards alternative investments. Direct venture capital investments and absolute return strategies among the most popular investments in UHNIs and Family Offices. Calculated risk-taking and tactical allocations can be seen in portfolios.  How inclined/disinclined are UHNI’s towards plain vanill...