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Charts & Analysis

Scraping The Bottom Of the Returns Barrel

Well done, NSE Nifty. What can I say, when a picture is worth a thousand words?

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Tough, tough year.

  • Yes. It seems that Indian equities are going down the drain in the short term.
    But this time around it is different than 2008. Problem is not only with Global scenario, but also with Indian one. Govt is fighting its own battles with its allies, Annas and corruption. Reforms have come to a standstill and any new high potential initiative is stalled. Inflation has sustained around 10 for quite long and this has changed people’s ‘expectation’ of inflation. And as we know that expectation of inflation builds inflation, it would be a tough task to tame inflation this time. But theory of Macroeconomics also says that to bring down the ‘expected’ inflation by just 1% point, a lot of growth has to be sacrificed. And that is what is happening in India! We have raised our interest rates like anything and almost killed our growth. Lets just pray that recovery comes sooner than later or else we can bid goodbyes to our 9% plus growth days.

  • Dheeraj says:

    We should keep any eye on govt loans as well