Chart of the Week
Price Multiple distribution of Nifty 500 stocks – Source ( Capital Line DSP, Alpha Ideas)
Recap and Outlook
Markets inched up higher as the broader markets ( mid and small cap) also bounced back significantly
Nasdaq and US markets also did well on announcements of a tariff war pause with China
The immediate term outlook seems positive for the markets and it could over the next few weeks move towards the 26k Nifty levels
We remain cautious beyond these levels for very short term investors but over 15 – 18 months and more we continue to believe our earlier targets of 30k for the Nifty – so actionablesSIP’s – Continue as is ( if the amounts were increased as we had suggested last month, then reset back to normal levels)Lump sums – If you are already having a reasonable equity exposure, we would be cautious now and surely not go beyond the asset allocation limitsSTP’s – Can be paused if there is enough equity exposure and incremental exposure to be taken through balanced advantage funds ( specifically ICICI due to its defensive stance)International – We are recommending gradual lightening of Nasdaq and don’t recommend any other offshore investment yet ( China and Japan continue to be good for a small exposure as a SIP)Gold/ Silver – We have asked investors to reset back to around 5% of ones portfolio and avoiding any extra tactical calls here.
Triggers of next 2 months – Outcome of India Trade talks closure with US ( any repercussion of India’s retaliatory tariffs on US likely spurred by Trump’s statements on India Pak war, no further action on India- Pak war, US China Trade deal, monsoons)
Social Media Post of the Week
"My article in Your Story on how to manage finances in this digital age which tempts more spending and less saving" ~ Vivek Banka
Interesting Reads
A few questions by Morgan Housel
India factor in Dells’s AI playbook
India’s retaliatory tariff proposals
Will generics be impacted by US tariffs on India
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or investment advice. Please consult with a professional advisor before making any financial decisions. Past performance is not indicative of future results.
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