Market Musings Week 33: 75th year and 55,000
Today is India’s 75th Independence day and the stock market is also celebrating this. The Sensex crossed 55,000 while the Nifty crossed 16500. FPIs who were selling in July have bought equity worth ₹1,800 Crores till now. Investor sentiments were boosted with easing retail inflation and rising Industrial production also rose by 13.6% YOY.
Sometimes it does feel like the markets have declared independence from the rest of the economy. The RBI isn’t withdrawing liquidity as the economy isn’t strong enough. Also the GDP will be slightly higher than that of 2019-20. Yes the economy is improving and the results are good but is as if the pandemic never happened!!
Most existing investors are sitting on good profits and it is always tempting to book profits. However, if you are still far away from your goal, it is better to stay put!! After all there are very few investment options that can beat inflation. And the 41 year chart above, should reinforce this fact!!
There are 2 things investors should do:
- Rebalance your portfolio with a focus on Asset Allocation.
- Keep your expectations real. The high one year returns need to be moderated to be in line with your risk profile!
Investing is not a spectator sport. Don’t be a Bystander; Invest for Wealth Creation
Proud to be Indian and wishing all Indians a Very Happy Independence Day!!
Source: Moneycontrol, ET, Livemint
Leave a Reply