April 28, 2024
In this newsletter we answer the million-dollar question –
What do we think of the markets and how to play it:
Summary of the Note:
→ Sensex headed for 1 lakh over the next 12-24 months
→ Nifty trading at historical average valuations (could go higher) while the Mid and Small Cap indices are trading way higher
→ Gold continues to be attractive as an asset class for the next 12 – 24 months
→ The Nifty Small Cap, Nasdaq and Nifty 50 have been the best performers over the past 20 years while China has been one of the worst
→ Household saving into eq should cross 10% by 2030 which will keep the domestic liquidity very strong
→ Big Risks - Major domestic political uncertainties, major credit defaults (domestic or globally) creating a cascading impact, escalating geopolitical tensions making oil go much beyond 110 and stay there
→ Existing Investors – stay invested as per your risk profile, rebalance mid and small caps to the target levels (lower in most cases)
→ New Investors – Deploy 50% immediately and rest 50% over a 3m (Large Caps) and 6m (Small and Mid Caps) of your desired allocation
Click below to read our whole analysis.
Worries about US growth coupled with high inflation led to a massive fall during the week in the US markets. However, stocks recovered well by Friday
Indian markets remained resilient despite the US growth data while mid and small caps continued to outperform
As the war worries ease out as we had suggested earlier, markets could move higher on the run up to the election outcome
Worries on low voter turnout for the ruling party is speculative and we believe even if so, the impact wouldn’t be meaningful to harm the prospects of a stable government
Read out detailed note on the markets outlook and investing strategies at these levels
Even though we remain bullish on Gold (Since 4500) – Why it cannot be substituted for equities
Worries on stagflation in the US - Read More
Hedge funds lawsuits for stealing option trading strategies on Indian markets - Read More
Can India become a economic superpower - Read More
The central bank gold stampede - Read More
The death of the dollar - Read More
Muted growth in Indian IT sector - Read More
AI can kill all call centres - Read More
The men who killed Google - Read More
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