Monday, October 15, 2018

Two Months and Two stories.

Dear Patrons

Two Months and Two stories.

September 2018 – India’s GDP has grown by 8.2%. Highest in entire world. We are living in a country which is fastest growing economy in the world. Reasons,
  • Increase in I.T. filling (More Direct Tax Revenue) and Consistent GST collection (More Indirect tax Revenue)
  • Highest young generation among world population. Urbanization and Growth across sectors in tier II and tire III cities.
October 2018 – Stock Market in India has nosedived more than 4500 points (Apprx 12% down) in almost 1 month and investors have started to panic. Reasons,
  • Crude price going up and reports that it will reach to 100$
  • Depreciating rupee which is reaching almost Rs.75 now
What to do now?
  • Currently Marketcap of Indian Stockmarket is 23% in discount with the corresponding GDP. As the GDP is higher, it means that economy is strong and sentiments are bad.
  • Indexes have beaten down heavily. Largecap, Midcap, Smallcap are down 11%, 23% and 31% respectively. For Long term investor, Investing now is like buying Platinum at price of Silver.
Remember: There is “Regret of commissions” and also “Regret of Omissions”.

Should one not look at times of 2008 and 2013 where market bounced back at Rocket speed?

At Shalibhadra, we believe that ‘Regret of Omissions” is much greater. We don’t want any investor to be left behind in the growth story. We are actively calling investor to allocate some part of their surplus funds to allocate for Equities.

Nishit Siddharth Shah