Moneycontrol Pro Panorama | Great expectations ahead of Jackson Hole event

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Dear Reader,

The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.

It’s a bit like having to write about a much awaited sporting event—a world cup final, for instance -- on the day of the event. There may be little choice but to write, but the reader may also wonder if there’s any point reading more on a subject that’s been investigated inside out. With that misgiving firmly in place, here goes.

Today, Friday 7.30 pm IST, Jay Powell, the US Fed chair, will be in “the spotlight — and pulpit” as Gillian Tett puts it, in this FT piece, on the Fed chief’s address at Jackson Hole.  Markets are hoping to get clarity on whether the Fed will focus mainly on controlling inflation or also keep soft-landing the economy as a priority. Writing about how narrative matters as much as models, she makes a well-argued case for how the data may be the same for everyone but “the shape of our storytelling matters”. If Powell wants to own the narrative, so that another narrative does not take hold, then how must he proceed? Free to read for Pro subscribers, do take time out to read it here.

India’s markets seem to be running to stand in the same place, according to Ananya Roy, a fund manager, who peers beneath the surface to seek answers in a sectoral analysis. After all, what we see as a broad market defined by a single index is the sum of different moving parts. She concludes that global worries -- a long list starting from slowing growth in the West and China, rising energy costs, geopolitical tensions -- have soured the outlook for sectors with a global flavour. But for those with domestic moorings, it’s a relatively bright scene. It’s this tug of war that’s reflecting in the broad numbers. But what should investors make of it?

However, the interconnectedness of businesses comes out in this piece authored by R Srinivasan, where he says the pay-related jitters visible in the IT sector could be bad news for consumption.

Back to markets, the start-stop behaviour of the Street may have seen investors in both value and growth camps wonder if they should switch sides. Shyam Sekhar argues that “a dynamic, flexible, valuation centric approach is the need of the hour”. Or as a cricket journalist may say, read the pitch and then take a call.

But, if all this top-down approach bores you and bottom-up is what you seek, then head here for our research team’s weekly tactical pick.

Investing insights from our research team

Why should investors bet on DCB Bank?

Saregama: No slowdown in growth, but valuation remains flat

Tracker

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And in Personal Finance

Why long term debt investors should evaluate these funds for their portfolio

Technical Picks: Time Technoplast, Crude oil, Piramal Enterprises, Tamil Nadu Petroproducts and Sun Pharma (These are published every trading day before markets open and can be read on the app).

Ravi Ananthanarayanan
Moneycontrol Pro