Volatility, Inflation and Omicron are Stalling the Market
As FIIs continue to sell their holdings in the Indian markets and Omicron makes headlines, the equity markets remain on shaky grounds. Meanwhile, concerns regarding inflation are now becoming a reality and cannot be ignored for too long. Also, on the other hand, the falling prices in the China market are likely to divert the attention of FIIs to re-invest back there. On the optimistic side, the markets are providing another opportunity for investors sitting on cash to consider deploying it during this lull phase.
Therefore, with such rapid fluctuations in the market scenario, it becomes imperative to stay with stable and proven sectors. In the current scenario, the IT and pharmaceutical sectors are likely to be back as the preferred ones. In fact, one way to gauge strength in any sector is to identify the number of stocks that are making fresh 52-week highs. Taking this into account, our cover story dwells at length on stocks touching their 52-week highs. It also discusses in detail the merits of investing in 52-week high stocks. Isn’t it true that we all love it when our portfolio or stocks hit a fresh 52-week high? However, it is more important to understand the game than simply play it.
Further, like every year, the current Top 1,000 issue is one of the most awaited as it covers the leading sectors in India extensively and provides investors with a bird’s eye view on the Indian economy. Every sector is analysed after studying the performance of the listed companies in that space. In addition, we have provided detailed commentary on each sector, emphasising on revenue growth, margin expansion and contraction so that investors can take some informed decisions. I am sure you all will benefit immensely from the inputs provided in this special edition. We will be keen to receive feedback from you.
Going forward, expect the markets to remain volatile. As a heads up, do keep an eye for our next issue where we would be talking about investment opportunities for 2022 along with suggesting stocks that one should consider adding to one’s portfolio. Secondly, I am very glad to inform you that we have revamped our website www.dsij.in to make it more content rich and relevant to investors in today’s time. More work continues to happen on it as we remain committed to bring you the best about the markets. Do stay tuned and share your suggestions for further enhancing your digital experience.
And finally, the one important lesson I learnt when dealing with volatile markets is to remain invested in quality stocks where the conviction is strong. No wealth can be created without high conviction in portfolio stocks. Many a times, exiting in panic leads to lost opportunities and it’s not always easy to catch the bus on time again and again. Overall, exciting times lie ahead of us. The present turmoil will pass away too. Remain invested, remain diversified and most importantly, do not over trade as volatility is not always easy to profit from. In short, continue to keep a cautious stance for now and invest selectively. There is no need to rush!