INSIGHTS OF THE INDIAN ECONOMY

  TIME FOR BETTING ON REBALANCING THEME! We have been witnessing a phenomenal increase in the valuations of India's biggest company RELIANCE recently.  Despite global uncertainty and volatility, RIL share price has been achieving new heights day by day. All the sectors of the company have been doing well. Particularly OIL AND PETCHEM business are doing extremely well.  The GRM is at the highest level amid the Russia-Ukraine war which is not likely to end soon.  If the situation remains the same for the next couple of quarters, RIL is likely to generate huge cash in the oil business.  The other two sectors Reliance Retail & JIO are also doing well currently. As such we have been witnessing a run away boom in the share price of RIL. The market capitalization has already touched the $250 billion mark and is likely to become the first Indian company to achieve a $300 billion mark in the medium term. Though we foresee a bright future for the company, the market c...

  Hold your Nerve The market has been undergoing a difficult time these days amid prolonged Russia Ukraine war and increasing US Bond Yield.  Everyone is skeptical about the future of equities under these conditions.  Inflation has been hovering around multi decade high levels.  The IMF in its recent report predicted a minimum one percentage cut in world GDP this year. Under these adverse conditions rebalancing has been happening and funds are being shifted from equities to bonds. As a result, we have been witnessing a massive sell off from FPI in our stock market. However, in India we are not in such a bad situation though we do not remain decoupled with the rest of the world. Therefore, a fear factor persists in our market too.  This is a real testing time for us and let us see how our market reacts to these conditions. Although no one can predict the short term trend, in the long run one thing is sure that we are not going to stop and soon again we will see a...