This bull market has legs, but time is ripe for some correction

The domestic equity market opened with a gap up and the Nifty50 broke the strong resistance at 9,200 on the back of constant FII buying, which has even continued in the new financial year.

The big event of the week was RBI money policy review on April 6, in which the monetary policy committee unanimously agreed to keep the repo rate unchanged, but hiked the reverse repo rate by 25 basis points from 5.75 per cent to 6 per cent.

This will give a big respite to banks, especially PSU banks, which are sitting on huge liquidity, which will now make them earn more by 25 basis points extra. This will also compensate for the losses incurred due to rising bond yields.

Newly appointed Uttar Pradesh Chief Minister fulfilled the election promise by waiving off of over Rs 36,000 crore farm loans. This flies contrary to prudent fiscal discipline as highlighted strongly by the RBI Governor. Considering the size of Indian banks, the loan waiver will not have deep any impact in the long run.

Events of the Week

Air strikes by American Forces on Syria caused a spike in oil prices. This was an unexpected change of stance by US President Donald Trump on Syria, where he had refrained from interfering earlier. However markets across the world reacted maturely and side-stepped the issue, at least temporarily. The merger of SBI and associated banks went through in record time, an unheard practice for the government machinery. This will lead to a round of consol ..

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Wizard of Dalal Street: Govind Parikh's investment mantra

Wizard of Dalal Street: Govind Parikh's investment mantra Govind Parikh of Govind Parikh Securities says selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says I like to buy things in a bad market. Additionally, don't look current cash flow, concentrate on future cash flows — that is what I look at," says Govind Parikh of Govind Parikh Securities. He advises investors to buy good quality stocks when the market crashes. While sharing his investment philosophy with ace investor Ramesh Damani, on the Wizards of Dalal Street, Parikh says management integrity is very important when deciding which stock to bet on. He tells investors not to buy stocks impulsively. According to him, selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says. He al...

LIC IPO Shorts The largest market capitalization in the making. The govt selling 5 percent stake...... The cuttoff price 2100 Listing price 3000 or more shall be included in the nifty Pro Large base of policies Large Market Share Cons Decling market share viz viz private companies higher cost insurance policies Bottom line can apply for LIC IPO for listing gains..... For More do have a look at the Link Below https://www.youtube.com/watch?v=VPGp5V1ecDM

NASDAQ's Crack Will Rattle Global Equities During the week, the confidence of the bulls got shattered when tech-focused US companies crashed rattling the entire financial markets. Nasdaq's crash does not look like a normal correction but seems like a bigger downward spiral unfolding after valuations sky-rocketed. Given that US elections are only 52 days away, it seems unlikely that US markets will make fresh highs again and there is every likelihood that selling pressure may continue even in broader markets. Crude oil too has given up most of its gains and prices are below USD 40 per barrel on expectations of lower demand going ahead which suggests that global recovery might take longer than earlier anticipated. In contrast surprisingly, gold's move is not hinting at any major crash in the financial markets, given that gold prices consolidated and remained steady even when Nasdaq plummeted. One of the important ways to analyze the psyche of an investor is by measuring mut...

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