An investor can never control market movement, as this is a function of numerous variables. But an investor can certainly control his/her response to market movements. The sad part is, mostly, this reaction turns out to be the opposite of what it should be.
Mahesh Patil, co-chief investment officer of Aditya Birla Sun Life AMC, has 22 years extensive experience in fund and investment management, equity research and corporate finance. He joined the firm in 2005 as fund manager and was elevated as head of equity in 2008.
Steep hike in crude oil prices and alarming depreciation of the rupee are two key concerns for the market at this point in time. With currency being highly volatile, market sentiments are also getting adversely impacted.
Castor seed prices have been moving up since June due to estimates of lower production. With fundamentals continuing to support, prices are expected to move up further in the coming months.
Cumin seed (jeera) is caught in a piquant situation.
Investing in equity directly is a fulltime job and requires adequate knowledge and analytical skills. Thus, for a lay investor investing in the index fund is a good option. Let us understand the nitty-gritty of the index funds.
What’s index fund
The all-India cement prices declined by Rs 2 per bag to Rs 326 per bag in October as per our channel checks. Prices declined in east, south and north by Rs 3-5 per bag during the month but increased marginally in central, western regions.
In all the recent turmoil in markets across major parts of the globe, there was one last market standing: the US equity market. But last week showed it was impossible for this market to stand tall when the other major global markets were falling. On Wednesday, the US market finally gave in.
It is rare for buyers of both call and put options to be caught on the wrong foot. But it happened last week. All who had bought call options on Wednesday were in losses on Thursday.
The market meltdown is spilling over to the primary market. The great Indian IPO rush has stalled and companies which had been readying their initial public offerings would now have to either defer their issues or take a price cut to see their offerings through.
The linkage between elections and inflation has been tenuous. No government likes to enter an election phase with high levels of inflation.
The current market is characterised by volatility, negative sentiment and dark clouds. Crude, a critical factor of the fisc, is above comfort level, threatening to impact India’s current account deficit and the currency. Liquidity is tightening with capital outflows.
Crude oil prices remained volatile last week even as Brent crude touched four-year high on Wednesday. Supply concerns from Iran, increased US stockpiles and reports about Russia and Saudi Arabia raising production kept the crude counter busy.
To tackle the sugar cane arrears that stand at Rs 13,000 crore for the 2017-18 sugar season, the central government on September 26 approved an Rs 5,500 crore comprehensive policy package.
Life can be unpredictable, but planning your finances can help smoothen that journey and protect you and your loved ones against uncertainties.