Lack Of Trigger To Test Investors Patience

After falling by more than 1,000 points post-budget, Sensex is showing signs of recovery. Recovery is visible right now, whether it will be sustained depends a lot on the earnings season. 

What is bothering the market is not that there were no great positive triggers for the markets in the budget, but the fact that not much was done on the liquidity front. Bank recapitalisation announced in the budget, while considered a must to boost liquidity in the system, is not seen as a good enough solution for the liquidity issues. The market expects more solutions from the government. The business sentiment is weak right now as it is in other emerging economies.

The slowing economy, liquidity concerns, delayed monsoon leading to water shortage, rural distress in some areas and high valuation as reflected in P/E are among the reasons behind the recent underperformance of the Indian markets. The growth outlook for the economy has to improve to attract FPI money and even domestic money. The cut in interest rates in the US could trigger positive sentiment in global equities.

In this edition, we are extremely glad to bring to you “Top 1000” special issue where a comprehensive list of the top 1000 companies by market capitalisation is shared along with their financials. To top it up, we have also shared a sectoral perspective on 24 sectors based on the financials of the leading companies. Smart investors such as yourself can use this wealth of data to ascertain which sectors are outperforming the others. I am sure that the YoY growth data on several parameters shared in the Top 1000 issue will more than assist you in ascertaining the underlying trend across industries and make profitable investment decisions.

While a lot of investors found the budget to be a non-event owing to lack of positive announcements from the stock market point of view, one statement made by the Finance Minster caught the investors’ attention, i.e “The promoter holdings in any listed company shall not exceed 65 percent”! With this announcement, we thought it will be appropriate to analyse how many stocks will be impacted if such a decision was to be implemented. In our cover story, we have done exactly that and much more. Have a look at the cover story and take appropriate investment decisions. I hope you enjoy what you read in the cover story.

The current market situation warrants calmness. One will have to be ‘boringly consistent’ in these markets to emerge victorious. Consistency, in terms of sticking to quality stocks, is what I mean here and showing patience and holding on to quality (stocks) is what can be boring for many. So, the mantra is to remain boringly consistent while participating in the current market. Follow the basics of investment as there is no room for flexing muscles in the current market environment.

Stay tuned as we promise to keep you abreast with the ever-changing market sentiment!