Long story, short. Your portfolio & the week that went by!
Markets have corrected to a new low
“Oh no! It’s time to go!”
Markets have touched a new high
“It’s too expensive to buy!”
There may be a hundred reasons to not;
But it takes just one to escape the rot.
Sadly though, there is no reason adequate
for the fence-sitters choosing to simply wait.
The week and the month ended on an ecstatic high. NIFTY clocked a gain of over 7.5% only in the past six days while Sep’19 ended with month-over-month growth of 4.5% as the index reclaimed the 11,500-levels.
The finance ministry’s corporate tax rate-cut gift to India Inc. last weekend was well-received by capital market participants as domestic & foreign investors pumped in the capital in expectation of a spur in the earnings recovery rate. Modi’s visit to the Oval Office is expected to garner positivity for the Indian economy – especially around strengthened trade relations, improved tourism sentiment and influx of foreign capital into the home economy.
However, as the month wrapped, President Trump once again featured in global headlines as reports of progressing impeachment proceedings materialize coincided with his offensive strike against China which included announcing an intent to delist all China-based companies off the U.S. stock exchange.
Having said that, Indian capital markets have been quite resilient in the face of such escalating tensions between two super-economies as it basked in the comfort of an imminent consumption and earnings revival.
Here’s how the past week looked like:
Investors are advised to continue investing in a systematic fashion, sticking to asset allocation. If permitted by one’s risk & investment profile, preferences can be skewed towards a large & midcap allocation blend (large-cap orientation) and funds with meaningful exposure to banks, automobiles & IT as sectors.