HARIHARAN KR’s Post

#puzzle #time What does this puzzle say? 🤔 Hint - it is a commonly used phrase especially for stock markets (equity). Write it in the comments. Posted on a personal basis.

#cricket #testmatch India shatters records in dominant win over Bangladesh in second Test. India won the 2nd test match against Bangladesh despite losing 2.5 days of play due to rain. This was possible only due to the aggressive batting display by the batters (of course, bowlers did their job of getting wickets). In a normal course of test batting, the match could perhaps have ended in a draw. But Indian batsmen set a new benchmark with a staggering run rate of 7.36, the highest ever in Test cricket history (this is for the overall match). This achievement broke a 19-year-old record, held by South Africa. Not only that India set new benchmarks for 🏏 the fastest team 50 🏏 the fastest team 100 🏏 the fastest team 200 , all in a single innings. India scored 285 runs at an astonishing run rate of 8.22 runs per over. How often do we see underperformance of a market linked investment (equity/ equity mutual funds)? Perhaps, we could see poor or negative performance for a couple of years & this resembles the lost days in a test match (like 2.5 days in this match). But if the investment can bat like what Indian batters did, there is a very high possibility of not only recovering the loss or poor performance over the last few years, but also providing a decent positive performance (for cumulative years, including the loss years), resulting in Wealth creation. We have seen this happening on a regular basis in stock markets and with equity mutual funds. For an instance, the No.1 equity fund currently (for the period 2021-23) was ranked an abysmal No.160 (for the period 2018 - 2020). This means investors who stayed invested during the period 2018-2020 would have felt this is a lost cause, but the same fund has shown a tremendous turn-around in the subsequent 3 year period and taken the fund to the No. 1 position. source: funds india, data based on 3 year performance across diversified equity funds Key Learnings * Don't rush to exit investments too soon, especially diversified equity funds. * It may also not be a good idea to chase the top performers, as they keep rotating. * Staying invested for the long term, generally yields good results in equities #mutualfundssahihai #mutualfunds #investments Views are personal.

#fintech #olympiad What an electrifying experience we had at IIT Madras! 🎉 Our recent Investor Awareness Program was not just a session; it was a dynamic journey into the world of finance designed to ignite passion and curiosity among future innovators and leaders. We dived deep into essential topics, from why to invest, impact of inflation, various investment options, the role of mutual funds in wealth creation. The energy in the room was palpable as students engaged in lively discussions, shared their perspectives, and asked thought-provoking questions! This session was a part of the Fintech Olympiad organized by CashRich . A massive shoutout to all the bright minds who participated! Your enthusiasm to learn and take charge of your financial futures is truly inspiring. At #axismf, we are not just shaping individual financial journeys; we’re building a community of informed, empowered investors ready to make an impact! Let’s continue this momentum and spread the message of financial awareness far and wide! The future is bright, and you’re at the forefront! 🌟 Many thanks Sougata Basu for the opportunity. Not to forget mentioning the #iitmadras campus nestled in nature. We got to see #deers roaming around freely. #InvestorAwareness #IITMadras #FinancialLiteracy Aditya Tripathy Martand Singh Thanks

#rate #cuts #Fed is expected to start cutting ✂️the rates soon. What can be expected of #equity #markets? As per theory, the reduced cost of capital should augur well for equities👍 But, history suggests otherwise🤔 In the past 3 rate cut cycles, both indian and global equities did not fare well. 2001 : Nifty fell by 35% 2007-08 : Initially, nifty went up, but shed all the gains and ended correcting 60% from the end-2007 level 2019 : Nifty was by and large flat. We also had COVID in 2020 2024 : ??? Pls note - returns mentioned above are returns post 1 year of rate cuts. source: nuvama research As with most market cycles, some sectors do well, while some underperform. To know or guess the sector performance🤔, attempt the #trivia Views and trivia posted on a personal level.

#IMD predicts 'above normal' rainfall in September. Impact of La Nina is likely to lead to vigorous ‘cyclonic activity’ in the Bay of Bengal; monsoon rainfall in September is expected to be 9% above what is usual for the month 🌧 Monsoon momentum picked up in August and as on 29th Aug, rainfall was 7% above normal with showers in Aug 18% above normal. July-August Rainfall Among Wettest in Three Decades - The amount of rain that has been recorded in India in July and August is predicted to reach 595 mm, which is around 11% more than the long-term average of 535.4 mm. This will be on par with the 30 years’ wettest July–August total of 596.1mm, which was recorded in 2019. दूर तक छाए थे बादल और कहीं साया न था इस तरह बरसात का मौसम कभी आया न था ! Some key points 🌧 51% of country has received normal rainfall 🌧 33% of country has received excess to large excess rains Region showing deficit are East and North east India. The significance of rain is best explained by a Tamil thirukkural (thirukkural is a tamil language text consisting of short couplets) துப்பார்க்குத் துப்பாய துப்பாக்கித் துப்பார்க்குத் துப்பாய தூஉம் மழை. It says rain produces good food and is itself food. The improved spatial distribution has led to higher acreage under kharif or summer crops compared to last year. The reservoir levels have risen which bodes well for controlling escalated and sticky food prices. RBI is still on 'wait and watch' mode and has maintained status quo on the repo rate @ 6.5%. As the monsoon season concludes, we should expect more clarity on food inflation risk and guide the future change in monetary policy status and hopefully rate ✂ Views are personal. Image credits : IMD Views are personal. #monsoon2024 #economy

गोविंदा आला रे आला...जरा मटकी संभाल बृजबाला... मच गया शोर सारी नगरी रे... आया बिरज का बाँका संभाल तेरी गगरी रे... You would not have missed hearing these songs today as we celebrate the vibrant festival of दही हांडी (Dahi Handi). The Dahi Handi ritual consists of an earthen pot (handi) hung at a height, filled with ghee, sweets, almonds, dahi (curd) and butter, which a bunch of individuals try to reach and break. The breaking of the Handi symbolizes the playful and mischievous nature of Lord Krishna. The creation of a human pyramid is a common feature of the Dahi Handi celebrations with teams of individuals trying to reach the handi and break it. The Dahi Handi celebration and investments have many things in common. 1. The Goal: In Dahi handi, the goal is to reach the handi and break it to collect the Winning Prize. Investors need to have a clearly defined financial goal that they wish to achieve. The goal could be Child’s education, marriage, retirement, travel, etc. 2. Building the pyramid: The human pyramid is built layer after layer. Similarly, investors need to build their portfolio step by step. Wealth can be created through regular investments like SIP. 3. Strong Foundation: In the creation of the human pyramid, generally, the base level (ground level) will have individuals who are physically very strong and can bear the weight of the entire pyramid that gets created. Hence foundation is very important. Similarly, in personal finance, one needs to create a strong foundation by ensuring Emergency corpus creation, adequate life and health insurance. 4. Balance is the key: The human pyramid must be able to balance itself through the journey to allow the topmost individual to reach the top and break the handi. A shaky pyramid will falter. Investments must also be balanced by having a mix of equities, debt and gold in the portfolio. 5. Don’t ignore the thief: The legend goes that Lord Krishna loved butter (मक्खन) and would steal it from the pots kept in his home, thus getting the nickname – माखन चोर or butter thief. His mother Yashoda would then hang the butter pot to prevent him from stealing. In investments, too, we must realize that ‘Inflation’ is the thief and takes away a portion from the returns generated on the investments. Hence, it is important to look at assets or asset classes that have the potential to generate significant returns over and above inflation. Typically, equities (stocks and MF) have demonstrated that they are good at preventing Inflation from stealing away all the returns. 6. Teamwork: While only one individual (who is at the top) reaches the handi and breaks it, he could not have reached there on his own. Dahi handi is team work and only joint effort can lead to success. In investments, too, you may want to take help of professionals (IFAs/ MFDs/Wealth managers, etc) to reach your financial goals. #investments #mutualfunds #mfds #dahihandi Views are personal.

"बदलाव ही है स्थिरता का राज़, यही बाजार की पहचान, बड़ी कंपनियाँ भी हो सकती हैं कभी छोटी, यही है उनका अनजान। छोटे शेयर भी उठ सकते हैं आसमान की ऊँचाई, समय की धारा में सब कुछ बदलता, यही है बाजार की सच्चाई।" Change is the only constant...we know this & there is no better vindication of this than the stock market. It is generally perceived that a large cap stock will remain a large cap stock and that every large cap company is a #bluechip #stock. But that is not the case. Similarly, a small cap company or a mid cap company will never always remain so for ever. Consider this (based on the AMFI data on categorization of stocks over the period Dec 2017 to June 2024) 🔼 14 Mid cap companies have become Large caps 🔼 1 Small cap company has become Large Cap 🔽 20 Large cap companies have slid to Mid cap 🔽 5 Large cap companies have slid to Small cap 🔽 53 Mid cap companies have become Small cap 🔼 30 Small cap companies have moved to become Mid cap source: mint Between FY 2017 and 2024, the collective market capitalization of the 15 firms that moved up the ranks to large-cap surged from ₹2.1 trillion to an impressive ₹19.6 trillion. No wonder, they would have made a lot of money for investors. Companies that have fallen in the segmentation would have eroded wealth (especially those which became small cap from large cap) #stock #selection can be very #tricky. For a vast majority of individuals, who do not understand the markets, #mutualfundssahihai Views are personal.

#inflation #CPI #ratecuts India's CPI inflation for the month of July 2024 came at 3.54% (Y-o-Y). This was the lowest in the last 59 months. 👍 This was primarily due to sharp fall in food prices and a favorable base effect (the CPI for July 2023 was very high and hence the price rise over July 2023 looked smaller 🙄) The CPI Inflation has been below the 6% mark since September 2023 and remained within the Reserve Bank of India’s (RBI) tolerance band of 2-6% for 11 consecutive months. But, despite this low inflation, rate cuts may not happen too soon. The RBI kept the benchmark repo rate unchanged at 6.5% for the ninth straight meeting. Market participants have got 😫 waiting for the rate cuts to be announced by the RBI. “एमपीसी मीटिंग पे मीटिंग, मीटिंग पे मीटिंग, होती रही माई लॉर्ड, पर रेट कट नहीं मिला!” For the rate cuts, we shall wait. Meanwhile, a quick #trivia on CPI index. Views and trivia posted on personal level.

6 medals won... 6 lost opportunities to win a medal. सपनों की उड़ान में, मिली जो जीत की ऊंचाई, खुशियों की बातों के साथ, छुपा दर्द भी दिखाई। कभी हंसते हुए जश्न, कभी गम की बूँदें भी हों, खेल की दुनिया में, दोनों भावनाएँ एक साथ चलें। That pretty much sums up India's performance at the Olympics 2024. Lost opportunities lead to heart aches, especially when they have been missed by a whisker 😞 11 companies beat estimates...12 miss estimates. This is the Q1 FY25 score card of the Nifty 50 companies. Compared to the last quarter, the number of stocks that beat estimates fell to nearly half (11 in the recent quarter versus 21 in the previous quarter - Q4 FY24). The profit growth of the Nifty 50 companies was 4% (Y-o-Y) but fell 8.3% over the previous quarter. Companies in the Auto/ancillaries and financial services had 2 companies each that beat estimates. Companies in the FMCG space (3 out of 5) and the metals & mining sectors (3 out of 4) led the disappointment with reports below their estimates. Adani Enterprises Ltd. recorded the highest profit growth among the index constituents at over 160% year-on-year, led by strong growth in the new energy ecosystem segment, whose profits grew by nearly five times. The biggest disappointment in terms of profit was recorded by JSW Steel Ltd., whose profits declined by over 64% against the year ago period. The count of companies beating the estimates in FY24 was 4 in Q1 FY24, 14 in Q2 FY24, 16 in Q3 FY24, 21 in Q4 FY24. The count of companies which missed the estimates in FY24 were 14, 13, 16, 9 for the 4 quarters respectively. "बाज़ार की तरक्की का क्या हाल कहूँ, हर दिन यहाँ चढ़ती है, हर दिन यहाँ गिरती है। कभी उम्मीद की लहर, कभी निराशा की धारा, ऐसा है ये शेयर बाजार, कभी चाँदनी, कभी अंधेरा।" Some sectors do well, while others may not do well. This is the essence of the stock market. #Patience and #behavior will determine #success in the long run. Views are personal. Source: NDTVprofit

15th August - Independence day holiday 16th Aug - Friday (take a leave or fall sick) 17th Aug - Saturday (Weekly off) 18th Aug - Sunday (Weekly off) 19th August - Raksha Bandhan or a planned leave 5 days of holiday 😊 What's the best thing to do? The extended holiday weekend has triggered a significant rise in travel bookings for both domestic and international destinations😎. Food for thought 🤔 * Pondicherry has seen a 760% rise in hotel bookings * Udaipur - a 441% rise * Munnar - a 321% rise, all of these compared to the average bookings in the 3 previous weeks (source: cleartrip) Other top destinations include Ooty, Goa, Jaipur and Lonavala, all recording substantial booking growth (refer image). Flight bookings are soaring ✈ Bookings for international gateways like Kuala Lumpur, Bangkok, Singapore and Bali spiked by 56.8%, 34.7%, 33.6% and 15.6%, respectively, compared to the previous four weeks. (source: Cleartrip). On the other hand, Jaipur and Udaipur emerged as the most popular domestic destinations with bookings rising by 73% and 63%, respectively. & all of these despite rise in air fares (costs rose by up to 50%) and hotel booking/resort costs 🙄 Luxury resort properties are likely to see a rate increase of 15-60% during this period depending on the location. For instance, the Oberoi Sukhvilas in Chandigarh is sold out for 14-19 August, while its Agra property will sell upwards of ₹37,500 a night for a regular room, about 15-25% higher than its usual rates. Similarly, pool view suites at the plush ITC Grand Bharat in a remote corner of Gurugram in Delhi-NCR will start from ₹32,000 a night excluding tax, which is ₹8,000 higher than its usual rate. Then, Suryagarh Jaisalmer and Narendra Bhawan Bikaner are being prepared for a thronging crowd to come in to stay as the mega long weekend approaches. Sameer Mehra, chief commercial officer of MRS Group, the company behind these luxe properties, is expecting a 15-27% increase in occupancies on this long weekend over last year (source: Mint research) "यूँ ही चला चल राही, यूँ ही चला चल राही कितनी हसीन है ये दुनिया भूल सारे झमेले, देख फूलों के मेले बड़ी रंगीन है ये दुनिया " The Indian #consumption #story is clearly on a strong footing and this certainly bodes well for #tourism and #hospitality related #investments. Views are personal.