Making Sense Of The Market Leap
The stock market in India hardly follows the international market when it comes to factors influencing a bull run. For example, the reporter mentions low inflation across the globe as a reason for global stock performance. But in India, the inflation index has remained high. Also, the RBI doesn’t change interest rates too frequently considering the rising inflation. In fact, the central bank has recently decided to keep the interest rates fixed for the time being.
The author also mentioned strong corporate performance, even during the Covid period, as a reason behind the bull run. This assumption is not correct. Considering the shrinking GDP, it is hardly conceivable that industries are having a party. Moreover, jobs are gone and salaries have shrunk, demand for goods is less, and corporates are booking profit by reducing expenses, not by increasing sales. The Indian stock market is completely oblivious to the actual economic condition of the country. To link the market to the nation’s economy is foolhardy.
M.M., email
Better Earnings Outlook Driving Nifty
The Nifty has mostly traded in the green because of steady growth in valuations. People have been increasingly investing in the stock market. The author’s analysis of the current market and future trends in terms of GDP and inflation helps investors set expectations from the stock markets for the next few months.
Lipi Talukha, Nagpur
Ride the Bull, Cautiously
The sharp rally, especially in the past few months, has encouraged investors to have more faith in equity investments. Deciding investments and keeping track of them can be complicated. Things get worse if the stock market is volatile. The article has helped me set my hopes realistically and set goals accordingly. The author very rightly mentions the importance of holding good quality stocks for long periods of time for wealth creation. Most stock market investors suffer from uncertainty and lack of knowledge, so analysis and future trends work as a reassurance to remain invested.
Raghavendra Desai, Bengaluru
‘I’m a Conscious Consumer’
It was good to read about how Konkana Sen Sharma manages her finances and that she has become an even more careful saver now. It makes us realize that some concerns and worries run across generations and social strata. The degree or the scale may differ, but there is a common thread.
Padma V. Deka, Kolkata