Economy and Business

Indian Equity Summary-  ·         Benchmark indices ,Nifty 50 and Sensex closed in red and fell by 1.67% and 1.48% on a WoW basis, after registering gains for two successive Ø weeks. The fall in the indices was majorly triggered by the concerns over the surge in domestic Covis-19 cases and possibility of longer than expected economic recovery. Most of the Sectoral indices ended in red on a WoW basis, with BSE Metals and BSE Bankex being the worst performing indices by recording losses of 4.27% and 2.41%.  ·         On macro-economic front, Retail food inflation stood at 9.28% in May 2020 and Industrial production contracted by 55.5% in April 2020.On the Ø Global front as expected the Fed kept rate unchanged at 0% -0.25% during policy-meeting held on 10th June 2020 and projected a 5% growth in 2021.Going forward, global factors like development on the US -China relationship front , any resurgence of C...

Indian Equity Summary-   ·  The Global and the domestic equity market witnessed a broad based rally on the backdrop of gradual reopening of the global economy and Ø  unprecedented stimulus package implemented worldwide by the central banks and government. The domestic equity market, in line with the global markets closed in green for the second consecutive week with Nifty 50 and Sensex up by 5.86% and 5.75% respectively.   ·  Majority of the sectoral indices closed in green on a W-o-W basis with the top performing sectoral indices being BSE Realty, BSE Consumer,Durable, BSE Metals that rose by 11.12%, 10.03% and 9.27% respectively.   ·  Going forward, global factors like development on the US -China relationship front , Covid-19 situations as globally economies have started, opening up and as the remaining results of the earnings seasons unfold will continue to dictate the trend of the domestic equity market. We expect the trading range for Nif...

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...

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%; a basis point is 0.01 percentage point. In a span of just 2 months MPC has 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. Domestic economic activity had been severely impacted on the back of the lock-down and the only silver lining is provided by agriculture, with the summer sowing of rice, pulses and oilseeds in the country progressing well. The GDP growth is indicated to contract sharply as the drop in economic activity has been higher than expectation. Moderation in inflation as witnessed in recent months ...

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...