Nifty is hovering above 10000 level and there is an impression being made that there is a lot more room to grow. No doubt that there is a lot more room to grow but only in medium to long term. The QI FY21 will be a wash out for manufacturing companies, for automobile sector, for export sector, for hospitality industry and many such sectors, reflecting partly on financial sector firms including banks; when numbers come out bigining late July 21, I think many won’t be able keep their cool. Hence don’t be complecent and book partial profits.
The way Realiance saga is played out, surely by some big cartel, it feels like a sort of scam in market if not exactly one that may be called so. Be wary, be wary.
Does a company that has no plan of further investmet, feels that it’s RoI is poorer than the interest rate on borrowed capital and therefore is wisely raising equity to retire debt, ever has it’s equity valued higher than rest of the market? It surely no way this should happen, so unnatural forces must be at play, hence be wary.