Investor behaviour continues to differ around the country, impacting strategies and returns on the financial markets. Learn the different types of asset classes, the advantages of Equity as an asset class and the Cultural Shifts and how one can benefit from it with the MD and CEO of Axis Securities, Mr. Varun Thukral.

1. IS SHINING

2. INDIA STANDS TALL AMONG BRICS
India's GDP is among the best in BRICS countries. India's growth lagged China in 2017-18 due
to implementation of GST; it must not be forgotten that India's GDP growth numbers are on
rising trends while China is exhibiting a declining trend.
Brazil
2017 - 0.55%
S Africa
2017 - 1.5%
India
FY18 - 6.8%
China
2017 - 6.9%
Russia
2017 - 1.6%

3. CRUDE PRICES ON SOUTHWARD TREND
Though crude oil prices are off their lows, we do not see them crossing $80/bbl. Since India
imports 80% of its requirement, low and stable crude oil prices help it contain its current
account deficit.

4. FALLING TWIN DEFICITS
Rise in direct tax base and increase in indirect tax collection led to the improvement in fiscal
deficit, whereas fall in oil prices and gold imports are contributing to a fall in CAD (from its
highs in FY11-12).
Reducing fiscal deficit along with the contraction in CAD is improving the overall economic
health of the country. India is far better placed on twin deficit front as compared to 2013.
Indian Government is committed to fiscal prudence and has targeted to reach the 3% mark
by FY20.

5. INFLATION IN DOWNTREND
Commodity prices have corrected resulting into cooling down of inflation.

6. REDUCING INTEREST RATE SCENARIO
Interest rates have bottomed out and currently are trading at 6.5%

7. FII Vs Retail Holding
FII ownership has increased to 21% in mid 2018 from 17% in 2006; Retail ownership dropped
to 7.5% in mid 2018 from 9.5% in 2006.
BUT HOWEVER… EQUITY REMAINS AN UNDER-INVESTED ASSET CLASS

8. India Vs. rest in retail participation in Equity
THE ELUSIVE RETAIL INVESTOR IN INDIAN STOCK MARKETS

10. Yogash Chitta Vritti Nirodhah
1
Pramana
2
Viparyaya
3
Vikalpa
4
Nidra
5
Smriti
Confirmation Bias
Anchoring Bias
Gambler’s Fallacy
Mental Accounting
1/n Diversification Bias
Herd Behaviour Bias
Hindsight Bias
Recency Bias
Biases / Vrittis

25. arun.thukral@axisbank.com
@Arun_Thukral
facebook.com/YogiOnDalalStreet/
www.arunthukral.com
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