Think of navigating a river—sometimes the water is calm and steady, other times it’s turbulent, but at the end, there’s a rewarding view. That’s exactly what we’ve seen in India’s financial markets in the quarter ending September 2024. It’s been a mix of strength and growth, even as global uncertainty ripples through. Here is what’s happening currently- Stock markets are rising Bond Prices are increasing / Bond Yields are falling Gold is trending upwards Real…
Equity Market Insights: The equity markets kind of ensure that there is never a dull quarter! From April to June 2024, the Indian equity market was highly volatile, mainly due to the Lok Sabha election results and ensuing political developments. On June 4, the election results showed that the ruling BJP did not achieve a majority on its own, although it remained the largest party in a coalition government. This unexpected result led to a…
Equity Market Insights: A few themes are dominating the equity markets worldwide and in India. Many investors decide their investments based on themes which have already gained a lot of popularity. Here are some of the popular themes and the risks associated with them: Falling Interest Rates: There has been earnest demand by market participants to cut interest rates in the US and other developed economies on the back of falling inflation rates. Central Governments…
Equity Market Insights: “Investing is 5% intellect and 95% temperament. It means finding the strategy that will allow you to sit quietly when your emotions are screaming at you to do the wrong thing.” – Ian Cassel Unfortunately, having the right temperament for investment is not common. Stories of someone in your circle making a lot more money than you have a great potential to disturb the peace of mind and create an urge to…
Sentiments of greed, fear, and confusion are transient in the equity market. The sentiment cycles are permanent. Most of us have come across the following chart of the sentiment cycle. For those who are uninitiated, the below chart represents the cycle of greed and fear in any asset class with varying degrees of emotions. Sentiment cycles move from one extreme of greed to another extreme of fear which takes valuations also to extremes from their…