Phew…The Government Is Taking Steps, Finally!

First and foremost, with utmost grief I would like to inform you the tremendous loss not only to me but the entire investment community with the passing away of Mr. V B Padode, the founder of DSIJ group and my father. Mr. Padode has always been passionate about researching stocks and sharing the information with the investor community at large. Fortunately, we at DSIJ, have had the opportunity to groom ourselves under his expertise for many years to absorb his know-how, technique and passion to be able to expand on his vision further. In commemoration of his wonderful journey, we are running a special story about him in this edition. A special thanks to all the business stalwarts and industry leaders who came in hordes to pay their tributes to this legend. We have captured many of these tributes as part of our special story. 

Also, we would like to take this opportunity to share our condolences to Mr. Arun Jaitley who stood solid in his support to the mission of Shri Narendra Modi during his first term. May their souls rest in peace. 

Back to the market. On Friday, August 23, the government seems to have finally relented to the demands of the industry that was wrecked by myriad woes. While the rollback of surcharge on FPIs and other measures are helping the current market stability, the more important point that has relieved us is the *concern* and *intent* that the government has expressed. This, we believe, is more important than the current sops being rolled out. People were beginning to believe that the current government had somehow got into socialistic mode and had begun to abhor the word ‘profit’. Hence, policies were being rolled out to penalize people who were making money. Now, the investors can breathe in peace in the belief that ‘Happy Days’ are going to be here again. 

Yes, the raging trade war between the US and China has become a big event affecting the course of the market. However, again, one thing we should note is that Donald Trump,though appearing to be indifferent, is actually an unpredictable person who swiftly alters/rolls back policies if he finds them not helping the US economy. At the end of the day, he will not let the US economy slip or get into recession,at least until he gets re-elected as the President for the second term. 

In our last two issues, we have emphasized the need for investor to ‘Keep The Faith’. We continue to stand by the same as a lot of pain has passed and we are getting closer to happier days ahead. Continue to keep increasing the equity component in your investment portfolio as the risk-reward trade-off is going to be in your favour. 

Would like to end my first editorial, quoting Mr. V B Padode’s last prediction that the Sensex will be at 41500 by March 2020. 

RAJESH V PADODE
Managing Director & Editor