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.
Talking about the fall in markets sounds like a broken record. But, to put things in perspective, it’s important to remember that the Nifty is still 35 percent above its level in February 2020, just before the COVID-induced market slide began. Sure, that may be of little solace to more recent entrants to the market, but those in it for the long run will find out in their journey that such ups and downs are part of the investing experience. What really matters is how you navigate these times and not let the stress get to you. Today’s edition has a cross-selection of stories that you may like to read.
First, FT’s Robert Armstrong and Ethan Wu write in the Unhedged newsletter (free to read for Pro subscribers) on what really happened in the US markets. The jump followed by the tumble -- mirrored here as well -- was a puzzle. He sketches out three scenarios and of which the first two deal with inflation and recession, both of which investors don’t like. The third deals in the investing environment and wonders if valuations are indeed as some brokers seem to think. Do read.
But that’s for the US. What about India which is where most of our readers reside? Ananya Roy dives into the volatile waters and explains what changed now that led the RBI to shift lanes suddenly, spooking stock markets in the process. While DIIs were friends of the market even when the FIIs were displaying their fair-weather attitude, the RBI’s actions could have stopped them in their tracks. What lies ahead for Indian equities? Read to find out.
If this is your first or even second bear market episode -- it typically takes a few more before you have your own toolkit to manage it -- you might be wondering what the best way forward is. If you are new to markets, you may think if buying the dip made sense, then does gobbling the crash make even more sense. Hold on. In his weekly column, Ajay Bagga writes on investing in these volatile times. Hope you like reading it.
Lastly, our Herd Immunity Tracker reports a slight pick-up in COVID cases, not worrying but this is how it has always started. So, let’s keep our fingers crossed. Encouragingly, the progress in giving booster doses to the adult population is picking up pace. Vaccination has proved to be effective in protecting people and the economy from the worst effects of COVID-19.
Investing insights from our research team
Weekly Tactical Pick | This powerhorse has a lot of spark in it
Devyani International: Will it be among the fastest-growing QSR players?
Havells India Q4: Lloyd shines, but cost increases rein in profits
Mas Financial – Quality now backed by growth
Marico: Near-term headwinds a concern
Tata Consumer Products: Raw material inflation not a worry for now
What else are we reading?
Indian startups score unicorn century
Eris Life's growth hunger can slow earnings
Algo Learn | The final frontier: Going live
Holcim’s exit: Financial muscle no longer a trump card for MNCs in India
Personal Finance: As policy rates change, target maturity schemes could find more takers
Heat Wave Highlights Need to Switch From Coal to Solar
Fed's Mistakes on Inflation Came From Sticking With an Old Story
Biki Oberoi is best remembered for his attention to detail
Technical Picks: IndiaMart, Hero MotoCorp, ICICI Bank, Reliance Industries, and Lead (These are published every trading day before markets open and can be read on the app)
Ravi Ananthanarayanan Moneycontrol Pro
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