State of Markets

Friends,

I had warned you to be wary of market ruling high om 2nd Sept ’20 when Nifty stood at 11535 and market did fall by a good 200 or so points. It has been showing strength once again and has touched 11600 level of Nifty.

Let us examine what goes in to fueling this market up. There seems to be nothing else than liquidity, liquidity that’s abundant not just here but all over the world. At the moment we see that rationality has gone out investors thinking. The sectors that are under pressure are also being taken as healthy now and later. Some sectors like pharma have been given a lot of optimistic treatment. Both such attitudes are risky. Banking sector is not so muh in favor but inflation and liquidity make it more preferable space to remain invested in. Select goo NBFC and Banks to park your funds.

Those who are heavily invested must have umbrlla in form of Puts because the govts are short in revenue receipts and have expenditure lined hence the next budget will be raising taxes and also the excess liquidity has to be mopped up sooner or later.

HariO,

Krishna Khandelwal

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