The Markets

Friends,

Have a look at Nifty chart. In its longer history there has never been the kind of rise that has happened over last 7-8 months. Also its so while the Corona effect has almost wiped out a whole year of growth and Corona is still posing threat to economy.

The best approach for even the most optimistic would be to convert 50% holding in to cash and wait for right moment for re-entry. Bigger economies do better but not suddenly, there has to be a a continuous growth over time and market should move like wise not suddenly. If this is true then the surge in marketvis due to sudden surge in money supply and lowering of interest rates. With inflation going rapidly up RBI would be taking steps to control it and this will mean contraction in money supply and havoc in market will be seen then.

Best neans of growth come from within and not from out side, out side factors may turn favorable and unfavorable too in short term.

Be cautious, I would advise at this stage.

We have also trimmed our portfolios in light of above.

Krishna Khandelwal

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