Stay Long As The Bull Market Is Intact
By the time this issue reaches you, the “most-awaited Union budget” would have been released already and the markets will be taking cues from the specific proposals and the overall contours of the budget. Mostly, the budget should set a bullish tone, thus pushing the markets to all-time highs.
The bullish market structure is still intact even as the premium for Indian markets, when compared with the emerging markets, has reduced owing to the slowing of growth and the liquidity concerns impacting the corporate profitability. All eyes will be on the June quarter results as investors would be keen to know how their holdings are performing. While the interest rates are coming down, the crude oil prise rise is something that impacts the economy negatively. Ideally, softening interest rates, along with softening of crude oil prices, should do the trick for the Indian economy as the fiscal deficit situation is not worrisome and the overall the macroeconomic situation can propel growth in the coming quarters.
The highlight, in my view, of the first half of 2019 is the very few IPOs that have hit the markets this season. Only 8 IPOs – can you believe that? Only eight companies have raised capital via main bourses on a YTD basis so far. But then, past is history, and who wants to focus on history when it is the future that we are looking at. Our cover story on the IPO market in this issue talks about the prospects of the IPO market in the remaining part of the year. Looks like the IPO market is all set to revive. Do let us now your feedback on the cover story.
Penny stocks is one subject in the stock market that everyone loves to talk about, but very few are able to invest in profitably. In our special story on penny stocks, we have highlighted the performance of penny stocks in the past few years. We have highlighted the best practices for penny stock investing and also pointed out the risks of penny stock investing. It will be exciting to read your feedback on the special story.
While attempting to predict the markets, studying the trend reversal patterns is very important and useful. In our special story on trend reversal patterns, we have highlighted the most important trend reversal patterns that you can bank on. It is interesting how much these patterns reveal about the stock price behaviour. I am sure you will benefit from the story.
At this juncture when the Indian market as represented by Sensex is trading near its all-time high and yet underperforming its global peers, investors can stay long and avoid succumbing to any sort of pessimism on the market moods. The FIIs are interested in putting more money in India, MF investments are still witnessing healthy inflows, global equities are on a song, trade war tensions are de-escalating, interest rates are expected to remain soft and growth is expected to pick up. The liquidity problem faced by the NBFCs is real and is being addressed as we speak. The profitability of Corporate India will take a boost once the interest rates are rationalised further and the GDP picks up its growth trajectory.
Focus on consistent performers where valuations are not too expensive. Avoid buying leveraged stocks and stocks facing any corporate governance issue.
Stay tuned, stay bullish!
Happy Investing.