Karanataka Election Results, Crude Oil Prices And Weakening Rs To Influence Market Mood!

Sensex is on a roll, cheering the good earnings performance of corporate India, even as rising crude oil prices and weakening INR against the USD attempt their best to spoil the party. The combination of crude oil price rise and weakening INR can be sentimentally negative for the markets. However, I believe the crude oil prices have peaked out and the RBI may soon intervene to support INR against the USD by selling dollars in the market. 

I do not see any major reason that should worry long term investors at this juncture. The monsoon is expected to be good this season and the key trigger for markets could be the Karnataka election results. I think the BJP should form the government along with JDS in Karnataka. A BJP win in Karnataka should set the tone for 2019 elections and may trigger positive market sentiments. 

In this issue, we have discussed at length one of the most competitive industries in India – broking industry. In today’s world, I see those brokers flourishing in the market who are open to providing superior trading platform, advanced analytics, simplified stock market information, easy onboarding for beginners and customised feeds to investors. Do let us know your feedback on the cover story and whether or not you agree with our observations on the industry. 

If you are a growth investor searching for investing opportunity in a space that promises acceptable growth at decent valuations, try looking into the NBFCs that are focused on vehicle financing. Vehicle financing is a good business to be in right now and, in my view, promises growth. Do take a note of the only recommendation in the sector in our special story on vehicle finance stocks. Hope you would profit from it. 

I have always found it safe to invest in stocks of companies that have less debt or zero debt. In our other special story, we have shared some useful insights for the long term investors on investing in stocks of companies that are virtually debt-free. I think investors ought to pay extra attention to these stocks as these have shown tendency to deliver superior performance. Make the most of our observation on the debt-free companies and optimise your portfolio returns. 

Markets are sound currently and are behaving as expected – range-bound with a positive bias. The retail participation in the Indian equities is expected to be on the rise. The AUMs of MFs in India touched all-time highs in April. As there is no secular sectoral trend emerging in the current market scenario, it is important that the investors adopt bottom-up approach for stock picking. I believe there are opportunities galore across various sectors if one focuses on earnings growth and valuations. Remember to adopt portfolio approach and remain diversified, not just now, but always. 

I hope you are enjoying our all-new mutual fund magazine- which is on the flip side of your favourite magazine. Do help us with your feedback and let us know any specific aspect in the mutual fund space that you would want us to highlight. 

Happy Investing!