Dear investors,
A very happy and prosperous Diwali to you and to your family!
With this Diwali, Imperial Regalia opens its
eyes to the fifth month of its subsistence.
The stock market is hovering around 26,720 as
I write this newsletter, jumping 25% from the figure of 21,321 as in last
Diwali.
Apart from historical political changes like single
government gaining majority after 25 years, a lot has changed; but, what has
been the biggest change is intangible yet quite visible - the attitude of India
as a nation.
From a country, which was floundering in scams
since the past 60 years; we now stand united against the soft yet greatly
perceivable virtues of cleanliness and safety. The nationwide campaign of
‘Swachh Bharat Abhiyan’ and a very altruistic step of allocating 10,000-crore
rupees towards the crash victims and improving ambulance system to ensure
safety and care on roads for general public are the examples of changing India.
I always envy Warren Buffet when he proudly
states, that he won the lottery of birth by being born in America which makes
him among ‘lucky 1% of the entire population’. But the scenario can be
different now. Despite all the gloomy news from around the world (except
America, of course!), India as an emerging economy has shown a great
resilience. The reason for this come-back and positivity for the future is our
young population. We as a developing economy are strongly driven by internal
consumption; if directed proportionately we can and must lead to a robust
manufacturing-based economy. I believe that, if necessary steps are executed,
we shall witness the results in 2-3 years.
Upbeat earnings are expected in the month of October as results
open-up. Thus, hope of better economic performance gains strength. Yet
‘Caution’ remains the world of the day and as the past has taught us again and
again, we need to stick to our risk profile and asset allocation for time in
now.
I shall assert that every
investment must be treated as a business with a sole, undeniable and
indisputable aim of maximizing the profits. Hence, it becomes a matter of
utmost necessity that one should be aware of the past as well as the factors that
can affect the future course of investments.
Treading cautiously on the road of sectoral
recommendations, I would emphasize on the following sectors:
1.
Economic cycle-
Banking & Finance
2.
Consumption-based-
Automobile & Engineering
3.
Infrastructure-based-
Transport & Logistics
4.
Export-oriented- IT
& Healthcare
Since
last Diwali, investors invested in any of the above sector have witnessed a
dramatic turnaround, earning anything between 40%-135%. I believe, we shall see
a prolonged bullish momentum take force as and when the policy changes come
true.
Pallav Saraswat
No comments:
Post a Comment