#sensex now

[shaktiknowledgeblog]

sensex | sensex today | bse sensex | sensex moneycontrol | sensex share price | sensex now | nifty | Market Closing

Investors in the market today closed with fierce money, sensex and nifty boom Sensex and Nifty News: This return to the market has led to a thick earnings of investors। Investors have become Malamal in a single day. Share Market News: The market has been looking bright since yesterday। Today, for the second consecutive day, a boom has been recorded in Sensex and Nifty। Sensex has gone 58,229…

[zebu-helan]

What Are The Indices In The Stock Market?

An investor can use a stock market index to gauge the performance of a market, such as the Bombay Stock Exchange or the National Stock Exchange, or a sector, such as the energy, infrastructure, or real estate sectors. The two most prominent stock market indices in India are the SENSEX and NIFTY. Indian investors can monitor how the index value changes over time and use it as a benchmark to determine how well their own portfolios are performing.

Investors now refer to the stock market as having indexes for various areas of the market that do not necessarily move in lockstep. Because there would be no need for multiple stock market indices if they did. You may make sense of the daily changes on the Indian market by knowing how stock market indexes are created and how they fluctuate.

The SENSEX S&P BSE (commonly known as the BSE 30 or SENSEX) was the first stock market index for stocks. It was founded in 1986. It is composed of shares from 30 well-known and financially stable BSE-listed companies. These businesses are representative of the major industrial sectors of the Indian economy.

How to Calculate SENSEX

The SENSEX has adopted the market capitalization weighted system, which assigns weights to companies depending on their size. The weight increases as the size increases.

It is now believed that the overall market share was 100 points when the index was created. This displays the percentage change in a logical manner. So, if the market capitalization rises by 10%, the index rises by 10% as well, from 9 to 10.

Assume there is only one stock on the market. Assume that the stock is now trading at 200 and that its fundamental value is 100. If the stock is worth 260 tomorrow, it has increased by 30%. As a result, the index will rise 30 points from 100 to 130. If the stock price falls from 260 to 208, the loss is 20%. The SENSEX will be revised from 130 to 104 to reflect the decline.

CNX NIFTY S&P (also known as NIFTY 50 or NIFTY) The National Stock Exchange has 50 shares of NIFTY, which was founded in 1996. It provides investors with access to the Indian market through a single portfolio and encompasses 24 various segments of the market.

NIFTY computation

The same algorithm used by the Bombay Stock Exchange to calculate the SENSEX is also used to calculate the NIFTY. However, there are three significant differences:

The NIFTY index is comprised of 50 equities that are actively traded on the NSE (SENSEX is calculated on 30)

Each sector has its own index on both the SENSEX and the NIFTY. This makes it easy for investors to keep track of market fluctuations on a daily basis.

Consider this useful advice: if you want to play the stock market, you must learn how to keep a watch on the scorecard, which is composed of two stock market indices. Zebu's platforms provide real-time price movements for the Nifty and Sensex. To learn more, open a trading account with us.

[shrey-bhootrablogs123]

Outlook 2023, BONDS is the place to be.

OUTLOOK 2023,

        BONDS IS THE PLACE TO BE.

                                   BY

                                       SHREY BHOOTRA

                                        STANDARD 7th

           SCHOOL – THE BISHOPS SCHOOL CAMP, PUNE.

                                INTRODUCTION.

In this paper I will be talking about the outlook of 2023 and why this year bonds are a safer and better bet compared to equities.

1.   Indian stock market lags behind its global peers in 2023.

The Indian stock market, which had been a star performer in 2022 despite global headwinds, has been lagging behind its global peers since the start of 2023. The domestic benchmark indices, the Sensex and Nifty 50 gave a return of 5.78% and 4.33% in the calendar year 2022 respectively. Since the start of calendar year 2023 the Nifty 50 index has gone down from 18,197 to 17,567, while the Sensex has gone down from 61,167 to 59,745 which means they have both gone down by 4.47% and 2.33% already! The markets in 2023 started the year well before facing challenges as the month went on. The underperformance has been attributed to a range of factors, including continuous selling of FPIs, the reopening of the Chinese economy, the sell-off in the Adani group stocks and the depreciation of the Indian Rupee. On January 25th the Nifty 50 and Sensex tumbled 1.25% and 1.27% respectively, a day after the Hindenburg released a report alleging the Adani Group of certain accusations, on the following day the two indices lost another 1.61% and 1.45% in value, taking the cumulative loss to 2.83% and 2.70% in just two trading sessions. The banking stocks which had given loans to the Adani group of companies also took a brunt on concerns over the debt exposure to the Adani group, the Banking sector which had been the driving force behind the index growth over the past few years was now facing headwinds causing the Nifty 50 to underperform. According to the PTI report foreign investors pulled out Rs 28,852 crores from equities in the month of January 2023, making it the worst outflow since June 2022. This came following a net investment of Rs 11,119 crore is December 2022 and Rs36,238 crore in November. The Indian Rupee started January 2023 on a strong note, strengthening 1.60% in the first three weeks, however it gave up its gains as the month progressed and ended January with a fall of 1.18% at 81.73 against the US Dollar. The Indian Rupee ended 2022 as the worst performing currency with a fall 11.3%, its biggest annual decline since 2013. In December 2022 the global brokerage Goldman Sachs said that India is likely to underperform its peers in 2023 due to expensive valuations. The Indian market had been a strong outperformer in 2022 due to stronger domestic fundamentals, but valuations have turned expensive compared to global peers. Another cause for the equity markets not performing well is inflation, inflation in the month of January 2023 in India was 6.52% compared to 5.72% in the month of December 2022, when inflation is high it reduces the purchasing power of common households thus also having a negative effect on the equity markets. The main cause of rise in inflation in India is because of food inflation, the CPI food index rose to 5.9% in January 2023 from 4.2% in December 2022.

2.   Why are bonds the place to invest in 2023.

Since the equity markets have not been performing well since the start of the year, bonds are the next best place to invest, retail investors, DIIs and FIIs have been pulling money out of the market and have been investing in bonds. Since bonds provide a predictable income stream and have stable returns and have a lower risk people prefer to invest in bonds this year over equities. The US one year bond yield is currently at 5.0541%.

-       SHREY BHOOTRA

23.3.23

[werindialive]

Stock Market Crashes, Rupee Hits Record Low After Fed's Hawkish Pause 

The Indian stock market suffered a significant blow on Thursday, with the Sensex plunging nearly 1,000 points, or over 1%, to 79,179. The NSE Nifty Index also dropped sharply by 301 points, closing at 23,897. Alongside this, the Indian rupee slipped to an all-time low of 85.06 against the US dollar, reflecting investor anxiety following a hawkish tone from the US Federal Reserve. 

The Federal Reserve cut interest rates by 25 basis points, taking its benchmark rate to 4.25–4.5%. While the rate cut was in line with market expectations, the Fed's projections signaled a slower pace of rate reductions next year. This shift dampened market sentiment, leading to sell-offs in global equity markets and a spike in bond yields. 

According to Ionic Wealth, the Fed’s decision to increase inflation expectations for 2025 by 30 basis points and its hawkish stance caused the Dollar Index to surge to 108. This further pressured emerging markets, including India. 

Deepak Jasani, Head of Retail Research at HDFC Securities, noted, “US stocks and bonds sold off after the Federal Reserve released new economic projections pointing to a slower pace of rate cuts next year. Officials anticipate inflation to remain sticky into 2025.” 

The rupee’s fall to 85.06 against the dollar is attributed to the equity sell-off and the strengthening greenback. Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, said, “While the 25 bps rate cut was expected, the relentless rise in US 10-year bond yields from 3.6% to 4.5% over the past month was surprising. This rise signals market anticipation of slower rate cuts and potential inflationary pressures.” 

The ripple effect of the Fed’s hawkish stance extended to Asian markets, which also witnessed a slide on Thursday. The global markets now await the Bank of Japan’s policy decision, further adding to investor caution. 

Despite the current market turmoil, Sheth pointed out that cooling bond yields below 4.335% could benefit emerging markets like India. However, much will depend on how inflation and interest rate trends evolve in the coming months. 

As global and domestic markets adjust to the Fed’s projections, investors are advised to remain cautious and focus on long-term strategies amid heightened volatility.  

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[bakchod-gandhi]

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[lisakapoorblogs]

Understanding the Impact of New Financial Players on India's Stock Market Performance

The entry of new players in India's financial market has brought fresh opportunities and challenges for investors and the market alike. New financial entities, including large technology-driven finance companies, have gained considerable attention from investors. One such entrant is Jio Financial Services, whose stock performance, including the Jio Finance share price, has sparked significant interest and curiosity. The presence of these newcomers not only diversifies the financial sector but also influences overall market dynamics, attracting investors looking for innovative offerings and robust growth potential.

India’s stock market, especially major indices like the Sensex, reflects the health and direction of the country’s economy. Sensex, comprising 30 of the largest and most actively traded companies on the Bombay Stock Exchange, serves as a barometer for market sentiment. The introduction of innovative finance companies into the market adds diversity to this index, potentially affecting its movement and, in turn, investor portfolios. As these new players establish themselves, they bring fresh capital inflows and often benefit from high investor demand, which can drive up their stock prices and impact the broader market’s performance.

Influence of New Financial Companies on Market Sentiment

New financial players, especially those with strong backing and innovative approaches, greatly impact investor sentiment. Investors interested in financial services' future like Jio Financial Services' technology-driven finance solutions. These companies attract institutional and retail investors who see potential in digital payments, fintech, and alternative lending. This raises these companies' share prices and boosts the financial sector's market share.

These players in market indices increase sectoral diversity, reducing risk and improving stability. When emerging sector companies perform well, they boost their indices, potentially raising the Sensex. These companies' growth can strengthen market indices, making them less sensitive to fluctuations in traditional sectors like banking or manufacturing.

Opportunities for Portfolio Diversification

New financial companies give investors unique diversification opportunities. Bank stocks dominate traditional portfolios, but digital and tech-focused financial services can now be included. This diversification may reduce risk for long-term investors because tech-driven finance companies respond differently to economic cycles than banks.

The growth of these new players may also offer attractive returns. These companies become promising investment opportunities as they invest in innovative solutions and adapt to a digitally savvy population. They also carry risk, particularly from regulatory changes and competition, due to their youth. Investors can mitigate these risks by investing in both traditional and fintech companies.

Challenges and Considerations for Investors

New financial players bring exciting opportunities and challenges. New financial companies may experience volatility as they adapt to regulations and compete with established institutions. New stocks may have higher price fluctuations and regulatory changes, which investors should consider.

As they compete for market share, these companies may be valued high. Before investing in these stocks, investors should evaluate valuation metrics and growth prospects. A diversified portfolio of traditional and new financial stocks may mitigate these risks, allowing investors to benefit from stability in established sectors and growth potential in new players.

[timelessnewsnow]

Indian stock markets have taken a significant hit over the last couple of months, raising concerns about the possibility of a bear market. The Nifty 50 index is now down by around 10% from its 52-week high, and the Sensex has lost more than 8,000 points since its peak in September. As the markets continue to slide, questions are mounting about whether this is just a temporary correction or the beginning of a deeper downturn.

Read more 👆🏻

[hindustanmorning]

Sensex, Nifty crash over 2% each. What should investors do now?

The Indian stock market crashed on Thursday, 3 October, with benchmark indices Sensex and Nifty 50 witnessing sharp declines of over 2 per cent each, driven by escalating geopolitical tensions in the Middle East and weak global cues. The broader markets followed suit, with Nifty Midcap and Nifty Smallcap indices tumbling more than 2 per cent each. Following today’s decrease, both benchmark…

[financesaathi]

BSE Sensex Gains 249 Points Amid Tech Rally and Fed Policy Anticipation

The BSE Sensex advanced by 249 points or 0.3%, reaching 81,772 in early trading on Thursday, bouncing back from losses seen in the previous session. The gains were fueled by a tech-driven rally on Wall Street that followed the release of favorable US inflation data. The US inflation report for August 2024 showed inflation had cooled to its lowest level since February 2021, providing a boost to global markets.

Investors are now turning their attention to next week's Federal Reserve monetary policy meeting, where the expectation is that the Fed will opt for a smaller rate cut given the positive inflation data. Domestically, Indian traders are also awaiting the release of August inflation data later today, with analysts predicting a figure of 3.55%, little changed from the five-year low of 3.54% recorded in July. If inflation remains benign, it increases the likelihood that the RBI will consider rate cuts by the end of 2024, further supporting market sentiment.

The Nifty 50 index also climbed, gaining 0.4% to rise above the 25,000 mark. The rally was broad-based, with foreign inflows and all sectors trading in the green. Leading the pack was the Nifty Healthcare index, followed closely by gains in consumer durables, pharmaceuticals, auto, and metals sectors.

Top Gainers

Among individual stocks, some of the standout performers included Bajaj Auto, which surged 2.4%, and Adani Ports, rising 2.1%. Both companies have been benefiting from strong fundamentals and increasing foreign investor interest. Meanwhile, Kotak Bank and Shriram Finance posted gains of 1.7% each, buoyed by expectations of monetary easing from the RBI. In the technology sector, Wipro rose by 1.4%, reflecting the continued strength of tech stocks following the global tech rally sparked by US market gains.

The rally in Indian markets mirrors broader global trends, particularly in tech-heavy sectors. In the US, semiconductor companies such as Nvidia, AMD, and Broadcom led gains on Wednesday as investors bet that cooling inflation would allow the Federal Reserve to pursue a more dovish stance. The Nasdaq Composite surged by 2.17%, while the S&P 500 gained 1.07% and the Dow Jones rose 0.31%.

Get More Info : Stock and Share Market News

Website : https://financesaathi.com/

Contact Us : Indian Stock Market News today

[wiseglobalresearchservices]

Sensex at all-time high of 82,637 and Nifty at 25,249: Market up more than 200 points right now; All sectors except IT and auto sector are up

[head-post]

Global stock markets crash 2024

A wave of panic swept through financial markets on Monday, with stocks falling sharply in the US and around the world as investors took note of signs of a slowing US economy.

Monday’s fall extended a sell-off that began last week after the US jobs report on Friday showed a significant slowdown in hiring and unemployment rose to the highest level in nearly three years. That fuelled fears that the world’s largest economy could slip into recession and that the Federal Reserve may have waited too long to cut interest rates.

Other factors exacerbated the fall – fears that technology stocks had risen too quickly and that a sudden strengthening of the yen would hurt the prospects of Japanese companies and some global traders – both of which also hit markets.

The S&P 500 index fell 3.7 per cent in early trading. The technology-heavy Nasdaq composite index fell 4.7 per cent. “The markets are a little out of control,” Andrew Brenner, head of international fixed income at National Alliance Securities said. He also added:

It’s just total panic. It’s not real, but it’s painful, and it could stay with us for a few weeks.

Taiwan stocks fell more than 8 per cent on Monday, with the Taiex, the Taiwan Stock Exchange’s weighted index, ending morning trading at 19,830.88 points. The collapse sent shares of chip giant TSMC, which produces more than half of the world’s silicon wafers, down 9.3 per cent.

Indian stock markets, the Sensex and Nifty 50, suffered a heavy sell-off early Monday, down more than 3 per cent each in intra-day trading. Analysts blamed fears of recession in the US and rising tensions in the Middle East.

Japan’s Nikkei index fell 13 per cent in early trading on Monday, hitting seven-month lows. Investors say the index has not seen such losses since the global financial crisis of 2011.

The pan-European STOXX index fell about 3 per cent, with declines in all of the continent’s major markets.

According to the CME’s FedWatch tool, traders now estimate the probability that the US central bank will cut interest rates by 50 basis points in September at 89.5 per cent, up from an 11 per cent probability last week.

Brokerages have also revised their 2024 Fed Funds rate forecasts to a more aggressive cut. JPMorgan believes the Fed will cut the rate by 50 basis points at the September and November meetings and then cut the rate by 25 basis points at each subsequent meeting. Goldman Sachs expects three consecutive 25 basis point cuts in September, November and December. Analysts at Bank of America expect the Fed to start cutting interest rates in September by 25 basis points, although the bank previously expected the first cut only in December.

The price of bitcoin fell below the $50,000 mark for the first time since February this year as the effects of the turmoil in the global stock market spilled over to the cryptocurrency market. The cryptocurrency’s price hit a low of $49,351 in early trading on Monday, and although it had bounced above the $50,000 threshold as of 08:00, it was still down 13 per cent for the day.

The main index of the Borsa Istanbul 100 Index (BIST 100) fell 6.72 per cent during trading, after which the bourse halted trading but has since resumed trading.

Read more HERE

[bakchod-gandhi]

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“Someone asked me what is the best time to invest in India, I told him in my opinion the best time to invest was July 24th, 1991, which is the day Manmohan Singh gave the budget, the index of 1400, the Sensex I believe was around 1400 odd there and that day the cards were open. He knew that India was going to change and go to a better place and subsequent events have proved it completely right. The next best time to invest is today. I mean if you have not invested in India, you gotta start doing it now,” says Ramesh Damani, Member, BSE.

Damani says: “All my predisposition tells me to remain invested, do not get scared by the volatility and I have not been for 30 years, I have always remained almost fully invested in Indian markets, so I do not get scared with the volatility. The best is yet to come.”

What a delight to have you on ET now. Thank you for joining us. It is always a pleasure to be with you and thank you so much for the very kind words. And I will say learn to be bullish in India, I learned from our common friend Rakesh Jhunjhunwala and my mentor RK Damani. They are the ones who taught me that India is a growth country. It is so populated and so there is only upside. I owe a lot of debt to those two people at least.

To be fair, you have always identified mega trends. And before the world started using the word mega trends, you started practicing the whole thesis of looking at the big picture and then identifying companies within that. Yes absolutely right. I tried to do that. When I came back in the late 80s to India, the mega trend was cement shares. It was actually morphed by what was called the liberalization trend that was taking place in India. After that, I realized the big money is made in the big swing and you need to identify the big swing. So we were very lucky we got the 2000 technology trend right. And then I tried to follow each bull market and try to spot the leadership in this bull market.

I have been at somewhat of a thought process trying to figure out how to label this bull market that started. You know how we label this bull market? I finally had what you call eponymy moment which says that the label would have caused the growth of the great Indian middle class. I think that is going to be a great story. The new book out which I would recommend. I have not read it yet but I have ordered it is by Homi Kharas called The Middle Class. A lot of my ideas are from there.

He says that it is the middle class that started in England in the 18th-19th century that is shaping our world today. And he says that out of a population of about 8 billion 4 to 5 billion are now in the middle class. And the maximum number of middle class are coming from India rather than from places like America. So that is going to be a major trend because the middle class is roughly defined as having a PPP purchasing power parity of about $12 per day which is significantly above the poverty level of $2 a day.

That means at that point they can save, they can invest, educate, travel and do a number of things. And what we are seeing perhaps in India is the beginning of a hockey stick curve as our per capita has gone over $2,500 and the middle class expanded quite handsomely. They are now demanding action on things from climate change, to travel, to better education, to better living standards. That will be the mega trend which is not only shaping this bull market but also the society around us.

What is right and wrong in this market? We can argue both ways. What is your assessment? Well you know I think there is much to be right in this market. I think the last few days we have seen a significant fall in the market. I think we have added, if I am not mistaken, about 13 crore demat accounts in India, a majority of which have come in the last three years. All of them have been uniformly optimistic which is good. But they are getting a lesson to understand exhibits in the market, the difference between what I call risk and volatility.

Risk is the choice of permanent loss of capital which is very dangerous and you do not want to be in that situation. Volatility is what happened yesterday and what happened the day before yesterday and what will keep on happening in the markets. That market is correct. The next 2,000 points on the Sensex can be up and down. Nobody knows what is going to happen. Maybe an astrologer can say what will happen. But my strong feeling is that the next 20,000 points on the Sensex are higher because of the unfolding demographics, digitization and democracy that has taken root in India. So I feel that there is a lot that is going on right with this market.

What is going wrong in the market? A bull market like this will always lead to excesses, to overstretched valuations and will lead to unnecessary confidence and sometimes regulatory changes that are important or regulation changes that are important being pushed aside because the market is doing so well. We hope those mistakes do not happen. But there is a lot to be thankful for and a lot to be looking forward to being optimistic over the next few years rather than being pessimistic.

How are you approaching this market, are you fully invested? Yes, I am fully invested. I barely have any cash which is rare for me. Typically, I go in with 5-10% cash into the bull market but as I have aged and matured, I have been more confident putting all the money on the table and letting the risk come where it will. I feel there is good reason for optimism and one of the sectors that I called this time was of course the public sector stocks and they have had a brilliant run out there.

We need to give credit to the Modi government that the public sector, which was one of the drags on the Indian economy, has turned around. The people in DIPAM are really on top of the game. For the first time they are doing an OFS and the prices go sharply higher after the OFS, you know, so the fall is very temporary in those prices. I think the debate that PSUs should be privatized or value will not be unlocked has now receded. We are fine if these companies are so well managed.

One very important thing that people missed in the stock market was that a) the government would use these public sector units as the blunt edge for capital expansion and b) that they were telling them that you have to pay 30% of its dividends.

Two, three years ago, you were getting these companies on today's earnings and at a 7-8% yield which is an extraordinary bonanza the investors got early. So, it has been a good place and I am very clear, including after what the prime minister said in the Parliament and I am sure you noticed that. Basically, the Prime Minister of India going on the floor or well of Parliament and saying a bullish case of public sector in stocks, when did that happen? It has never happened before. So we were ecstatic when the prime minister did that.

It was in mid-August sometime and so my personal feeling is that the leadership is very much intact with the public sector stocks. They probably have a large-ish way to go still because typically, in the bull market leadership, the stocks go up 10x 20x after some point. So I would remain invested in good quality businesses.

The aggregate market cap for PSUs including LIC and some new IPOs is up 3x, that is aggregate market cap. It has been a phenomenal run and plus you got so much dividend out of it. I mean you were getting these stocks basically at 4-5% yield and with a certainty of an order book, it is not that the order books were speculative. We knew the order books for the next five years. So, I think there was a whole debate which I think was wrongly conceived in the stock market last year that you buy quality at any price and, of course, that is a mislead, you cannot buy quality at any price. There is a price that you pay will reduce your investment returns without doubt and I think the people who stuck to finding value investing and trying to find value irrespective of the PSU, smallcap, largecaps, did well.

So, if you look at some of the exchanges, the major exchanges remain stable where the unloved exchanges went up. The FMCG and the private banks did not do well. The PSU banks did so well. So, the market noted the cheapness of those particular sectors and rewarded those who bet on that sector very handsomely and I have been lucky in that.

Within that you identified railways. You have gone on record and you have said that you bought into the railway PSU basket, less of defence and more of railways. Not true. Actually, my first bet was on defence and second was on railways.

But you bought both. I bought both and I bought both with – not conviction but I just felt that they were too cheap. I bought all the defence companies. Some of them are extraordinary businesses and they continue to do well and what has happened is that we have gone from importing a lot of the stuff to making the stuff ourselves and now we are exporting it.

Look at the number of orders that say a company like Bharat Dynamics is getting or Hindustan Aeronautics is getting. An extraordinary shift has taken place. So, if you ask me within the PSU sector where is the leadership? I would say it is in the defence.

Also read | Mutual funds join multi-billion dollar PSU rally, eye 2014 record in election year And you think that one should look at these stocks barring the volatility which could happen 10-15-20% nobody knows, but the leadership sector you think is with PSUs as a bracket and within that, defence and railways could be subparts? I think so and I mean just to point out there is a lot of talk about the PSUs over many years and I just wish your people who come on the show and speak folios there, see a company like Bharat Electronics which I own and I am not recommending in any way or form other than educating the public about it.

We bought the stock maybe in the early 2000 at Rs 300-crore market cap. It is Rs 1,30,000-crore mcap right now. The dividend itself compounded at some 18-20% something silly. So, they have delivered some superior returns and they never diluted the equity, that is the most important thing I find. They have never diluted with equity in the 30 years they have been listed, they have never diluted with equity, which Indian companies can you say have not done that, even Infosys diluted with equity multiple times. So, an extraordinary business run extraordinarily well. I think some of the criticism has been misplaced.

People who criticised them, loved them altogether without trying to do what a stock picker should do or a good value investor, that is judge each individual company on its merit. I think they are paying the price for that.

Why do you think these things happen? I mean if the market cap was so cheap, if it was a government backed business, dividend yield was so strong, the same thing happened to let us say PFC-REC. Why do markets ignore them? It is a case of throwing the baby out with the bathwater. A lot of what is called herd mentality. Sometime in the mid-2000, the mantra became very popular in the stock market, quality at any price. We want good capital allocation. There is a very well-known author I met recently called Pulak Prasad and I respect him for he has done a fabulous job…

The book is fantastic actually. Yes, book is fantastic – What I learned from Darwin. He said I will never invest in the public sector but then he was honest to say that I don’t want to invest in a MNC also because both are very poor capital allocators.

Even conglomerates. He said I have never bought Tata or Birlas. So, I appreciate that at least he had the intellectual honesty to say that I do not want to go to a bad capital allocator. MNCs will also not do it in your best interest. I really appreciate that. But most people just want to throw the baby out of the bathwater because we made a lot of money in the first round of the PSU divestment. So, we were familiar with these companies.

We understood valuations out there and there was a period we did not make any money from them. But again it has come back. So, the market has to have the cyclicality and up and down trajectory that goes through. I think people who in 2000 said only invest in tech in India or people who said I only invest in high-quality business, pay the price. The market is not a place for the arrogant. It is a place for the humble.

In markets mean reversion is the biggest truism they always say that. Excesses always get created on the upside, on the downside. Where do you think markets are mispricing growth on the upside, that they are pricing a cherry consensus and where do you think they are still ignoring the potential of the business or the value of the company? It is a very difficult question. I do not know all that because I am a stock picker. I try to look bottom. Having said that, would I want to remain fully invested? Corrections have started, maybe it is coming, maybe it is right there. I think yes, I do not see any signs that I normally would see in a top. We do see some size in the reckless capital expansion, the QIPs, the response to public issues, something out there but for the first time, we are also getting three crore new investors coming in.

Every morning the market opens and Rs 1,500 crore is ready waiting to be invested. So, that is a sea chain that is happening. Some of the tops that we see in the market in terms of over leveraged companies or too much debt or too shaky corporate earnings; I do not see that yet. So, I am willing to tell you that what we are witnessing now is volatility and that is the nature of the market.

Charlie Munger recently passed away. He was asked the same question. He said in his lifetime of 40-50 years of being with Berkshire Hathaway, Berkshire Hathaway corrected three times of 50% each because he said that is the nature of the market. We cannot deal with it. You are not going to make money in life, okay. Risk is what I said is the chance that I can permanently lose capital, that I buy a business that goes bust. There have been a lot of businesses that went bust in India also, in the 2000 the tech boom I can rattle off names.

So, you want to avoid that kind of situation for any time in the portfolio and that can happen even in a good market that stocks can actually go bust. So, we do not want to get into that. A lot of people do option trading which is a zero-sum game. You probably want to scale down on that because it might be easy money but when you lose, you can lose almost the entire fortune in that, and I would be very careful of that.

But there are very good high quality businesses in India whether it was the public sector stocks, that BPO businesses, the IMEC corridors that we are talking about which will generate returns and do well for the customers over many-many years to come and if you are young in India and you are looking in the next 30 years, you need to invest.

Someone asked me what is the best time to invest in India, I told him in my opinion the best time to invest was July 24th, 1991, which is the day Manmohan Singh gave the budget, the index of 1400, the Sensex I believe was around 1400 odd there and that day the cards were open. He knew that India was going to change and go to a better place and subsequent events have proved it completely right. The next best time to invest is today. I mean if you have not invested in India, you gotta start doing it now.

I mean when they are going to do it and look at it for a period of 5-10-20-year period, do not look at it from the next five days which as I said could be extremely volatile and you could lose a lot of money out there. But if you keep the faith, buy high quality business with good cash flows, you are going to come out ahead in this business.

I will sound very repetitive with this one but it is important that we just get your views again. If you weigh prices and risk and the market dynamics, the sliver of the market may be expensive which always is the case but by and large, if you do a health checkup, the diagnosis of the market, you do not think there is a bubble or there is a mania in the market, one should remain fully invested. Absolutely not.

I am asking it point blank. Yes, I mean the point blank and I know I can be wrong with these kinds of things. You know markets live forward but understood backwards, so you do that. But all my predisposition tells me to remain invested, do not get scared by the volatility and I have not been for 30 years, I have always remained almost fully invested in Indian markets, so I do not get scared with the volatility. The best is yet to come.

Maybe India cannot double in three years, maybe it can double in four years’ time, but it is still the best place for a young Indian to be. I am not a young Indian anymore, I am reaching senior citizen level, but for a young Indian, if you are 30-35 years starting out, where are you going to put the money? I mean you cannot put it in gold or cryptocurrency. It is a dud’s game to do, it is the mugs game in my opinion to do it. You need to put in equity which generates some returns for you, gives you some dividend and allows you to build your wealth, just like my generation built the wealth.

As I told you in 1991 when we started the index was 1500. It is closer to 75,000 now. Look at the journey that has taken place. You made 30-40x on the index, imagine if you pick stocks how well you must have done during that period. So, I think given the sweet spot that India is in terms of its democracy, in terms of its demographics, in terms of digitisation that is helping and the growing middle class in India. I mean 500 million people will be in the Indian middle class by 2030. That is an extraordinary development taking place and we are going to witness what a lot of economists call a J curve once India's economy, per capita goes over $2,500-3,000. In that there will be a wide dispersion with people earning $10,000-15,000, the average is 3000, but a lot of people are above that number and that is going to power growth for a number of years to come.

Demographically as you know we are the best positioned country in the world. China's population is projected to grow over the next 30-50 years from 1.4 billion to 800 million. That is the kind of demographic disaster Korea, Japan, Italy and China are facing. India’s population is still growing and still young, so the next 20-30 years we do not have a problem.