3. EQUITY VIEW
• Last week was a truncated week. There was sufficient scare in the market. The bull market talks that we have
received from experts fell flat with one bad day. Everyone got rattled which is what happens when investors enter
the market because the market is rising. As of now the markets look weak. However, this does not mean that one
cannot invest. All it means is the whole mindset with which investors approach the market needs a rethink.
• In the past six months we have experienced a situation where the investors were of the opinion that markets had
no risk and that it would only rise. This mindset needs to be reviewed and changed as markets will keep moving
up and down. Investors should believe in what they are buying. Since most investors did not know what they were
buying, they were rattled by the events in the market.
.
4. EQUITY VIEW
• There is still a lot of froth in the mid and small cap segments. There might be panic selling by investors during
subsequent corrections but investors with good quality stocks have nothing to worry about. Market corrections
may not be more than 6-8%. However, portfolios with high beta stocks will suffer damages.
• In the global context also the situation is unstable. There are problems of the banking system in Europe,
uncertainty with regards to interest rates in the US post the presidential elections and the probability of Chinese
devaluation. Our strategies have always highlighted that investments should be made during declines. Since
declines have started, rather than withdrawing investors need to purchase stocks selectively.
6. DOMESTIC MACRO
• India's wholesale prices rose at a slower-than-expected pace in September, gaining 3.57 percent from a
year earlier, government data showed. Wholesale food prices last month rose 5.75 percent year-on-year,
compared with a provisional 8.23 percent gain in August.
• India may seek parliamentary approval to spend about $7.5 billion more on roads, railways and other
public programmes over the next five months, according to two government sources as Prime Minister
Narendra Modi looks to spur growth and create jobs.
7. GLOBAL MACRO
• British Prime Minister Theresa May has agreed to demands for parliament to debate the
government's plans to leave the European Union, but ruled out letting it vote on whether
to trigger the formal Brexit procedure.
• Britain's economy appears to be losing steam, with major business surveys showing a
marked slowdown in the services sector and boardrooms beset by doubt about the future
following the country's vote to leave the European Union. While the economy has fared
better than most economists expected since June's Brexit vote - largely thanks to upbeat
consumers - Monday's surveys will heighten concerns about its longer-term prospects.
EURO
8. GLOBAL MACRO
• The number of Americans filing for unemployment benefits held at a 43-year
low, pointing to sustained labor market strength that could pave the way for
the Federal Reserve to raise interest rates in December. Report from the
Labor Department added to data such as September automobile sales and
manufacturing and services sector surveys in reinforcing the view that
economic growth picked up in the third quarter after a sluggish performance
in the first half of the year.
• Several voting Federal Reserve policymakers judged a rate hike would be
warranted "relatively soon" if the U.S. economy continued to strengthen but
doubts on inflation remained, according to the minutes of the Fed's
September policy meeting released.
UNITED STATES
9. GLOBAL MACRO
• China's producer prices unexpectedly rose in September for the first time in
nearly five years thanks to higher commodity prices, welcome news for the
government as it struggles to whittle down a growing mountain of corporate
debt.
• New rules in China aimed at curbing risk and speculation have triggered an
exodus of institutional cash from the country's commodities futures markets
and hobbled a thriving niche business for brokers. Before the ban, futures
brokers were launching hundreds of structured products a month offering
guaranteed returns, which attracted institutional cash and fed billions of
dollars into the commodity futures markets.
CHINA
14. DISCLAIMER
The information and views presented here are prepared by Karvy Private Wealth (a division of Karvy Stock Broking Limited) or other Karvy Group companies. The information contained herein is based on
our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for
any loss incurred based upon it.
The investments discussed or recommended here may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial
position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned here, investors may please note that neither Karvy nor any person
connected with any associated companies of Karvy accepts any liability arising from the use of this information and views mentioned here.
The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above-mentioned companies from time to time. Every employee of Karvy and its associated
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purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders
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