And for a Friday ……. as India’s GDP continues to weather the storm & grow ….. stock markets fell for the 8th consecutive week ….some thoughts …. some musings ……
India’s GDP growth has reinforced its unique resilience to whether the West Asia Iran-US war ….erratic monsoon … uncertain Global supply chains ….. US tariffs etcetc ….. Agriculture with all its the limitations has put up a strong showing …..manufacturing has powered ahead …. consumption has defied global energy shock ……Major Global agencies have upgraded FY 27 growth forecast for India to 7% ….. most rating agencies have revised growth rate upwards….. Mody’s to 7% from 6; Crisil 7% from6.6 ; S&P,Fitch , OECD , ADB all around 7.1 from around 6.5 …… & Ofcourse the Finance ministry is even more optimistic at 7.3% …….the Indian rupee has been hugely buoyed by the tremendous success of RBI’s recent FCNR(B) special Forex swap which raised a monumental 132.98 Bn Dollars raising the country’s Forex reserve to an all time high of 785.71 Bn $s ……
Inspite of such good Macros , Foreign investors have continued to pull out investments from the Indian Share markets to US ,Korea , Taiwan etc chasing the AI dream & safer haven investment in US Bonds & treasuries ……. Indian equity markets have fallen for 8 consecutive weeks for the first time in 25 years …… naturally raising anxieties for normal Investors ……. My take ….. given the current fractured Global polity ….. increasing focus by each country inwardly protecting self-interests over everything else in a plausible G-2 world …..…… makes a strong opportunity for Equities & Investments in India ……. Don’t panic …. Stay invested …. those retiring or nearing retirements ….. must follow the prescribed Asset allocation …..Debt:Equity ……..first exhaust investments in SCSS giving 8.2% assured returns for investment upto 30 lakhs for self & additional 30 lakhs investment for Spouse …. RBI floating rate Bonds also @ 8% plus …….Post Office MIS @ 7.4 % …..& Bank FDs for one year Emergency funds …… rest surplus must be invested in Equities ….. this is best time to enter Eqity investment for all those who were on the fence ….. start now with a Flexi-Cap fund from a reputable Mutual Fund ……..see an investment opportunity in this crisis …..
These are certainly unpredictable times …, each morning brings another crisis in some part of the world …… let us remain Vigilant … & support India’s growth …… the involved way …… the Investing way ….. the SEEGOS way.