Make it Large

The market is behaving exactly like what had stated in our last two editorials – consolidating and prepping to give more investment opportunities to the investors in the coming days. It is exactly a year back when the market touched its nadir with the Sensex at 25,639 and now the markets today stand almost doubled at 50,051  supported by a net investment of over Rs 1 lakh crore by FIIs during this period. Now, with the amended Finance Bill passed in the Lok Sabha, a lot of new initiatives will get rolled out. There will be a ten-year tax break for the new infrastructure bank (NaBFID), faceless proceedings before the Income Tax Appellate Tribunal, no equalisation levy if services are provided by an Indian entity, etc. 

Many of these will further provide more clarity to businesses and help India move up in the ‘ease of doing business’ ranking. This special current issue covers the much-awaited research on large-caps. Large-caps are the most essential part of any portfolio. They provide steady returns and over a long-term horizon tend to deliver larger returns, to say the least. In our cover story we have given the historical perspective of large-cap performance against the mid-caps and smallcaps. The story also talks about the large-caps where the momentum is strengthening and provides a list of ‘quality large-cap stocks’ to be considered for building a diversified portfolio.

In one of our special stories, we have discussed how a crisis can help investors identify investment opportunities in individual stocks. Though the fear is high in such scenarios, yet so are the returns. Do share with us your feedback on the same. Meanwhile, we have also touched upon a hot topic. Cryptocurrency is making waves big time globally and is slowly making inroads into the Indian market. We think that India is a huge market for cryptocurrencies and more and more people may jump on to the bandwagon. Our special story on cryptocurrency essentially explains the basics of this innovative asset class and provides the pros and cons of investing in Bitcoins and other cryptocurrencies. Hope this article enlightens you with this new asset class which at the moment is not mainstream yet. Do share your views with us on this article.

Lately, the defensives, certain PSU stocks along with stocks in the infrastructure and cement space are doing well. This is a good time to build your equity portfolio with a three-to-five-year horizon as the markets tend to do well when there is recovery in the economy and the inflation pressure is mild. The bearish pressure on the market owing to the recent second wave of the pandemic should be taken as an opportunity to invest. It is time to keep your eyes open and dare to invest as opportunities get available.

RAJESH V PADODE
Managing Director & Editor