We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• World Bank predicts India GDP to grow at 7.3% in 2018-19 and the country will continue to be the fastest growing major global economy. India’s FY20 GDP growth pegged at 7.5% by India Ratings.
• United States to continue being the principal market for Indian services and will fuel India’s march towards becoming a USD 5 tln economy by 2022, according to KPMG.

2018 has been one of the most glamourous years for the Indian banking sector, especially for entities with ties to the government. And this glamour, mind you, was not at all pleasant. Yes, people have now become reluctant to even simply deposit their savings in these PSUs, leave aside investors buying shares of these banks. I mean why would they buy these shares? Have a look at the stock performances of the top 5 public sector banks barring heavyweights like SBI:

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• Moody’s Investors Service places a stable outlook on Indian banking system for the next 12-18 months amidst healthy economic growth prospects.
• India and Sweden sign two Memorandums of Understanding (MoUs) to bolster renewable energy technologies, further long history of collaboration.
• According to the World Bank, India retains its top position in remittances with USD 80 bln. China, Mexico and Philippines next in line.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• Improvement in granting of construction permits helps India leapfrog to 77th position from 100 in World Bank’s ‘Ease of Doing Business’ ranking.
• India emerges as one of the world’s foremost reformers, according to the World Bank.

Since the start of 2017, the stock markets have broadly moved upward. The BSE Sensex, the prime index of the broad markets, rose from 26,447 in January 2017 to a high of 38,989 in August 2018 (an increase of 47%). Since reaching this peak, the markets have seen a significant amount of correction over the past 2 months and are currently experiencing a mild upward movement. The Sensex closed at 34,981 on 22 November 2018.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• India continues to lead the world in Business Process Management, generating nearly US$ 32.5 bln in revenue. Revenue growth is expected to be US$ 167 bln in FY 18.
• The World Bank has stated that Indian growth trajectory points northwards as the country has overcome disruptions caused by GST and demonetization. Growth is projected to accelerate to 7.3% in FY 18-19.
• The IMF projects Indian growth at 7.3% in 2018 and 7.4% in 2019 as the economy has overcome shocks amidst an environment of strong investments and private consumption.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• China’s steel output declined in August (after hitting a record high in July 2018) due to restrictions imposed on steel makers in an effort to tackle pollution.
• India has emerged as the country with hardest working employees with 69% employees claiming they would work 5 days a week even if offered a shorter working week.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• According to Moody’s Investor Services, the Indian economy is expected to grow by around 7.5% in 2018 and 2019, and will be largely resilient to external pressures including rising oil prices.
• India’s economy grew at a 2-year high of 8.2% in the April-June quarter, which, according to industry bodies, confirmed that revival is on track.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• According to the Asian Development Bank (ADB), India will continue to be the fastest growing major economy, ahead of China, with 7.3% growth rate in 2018-19 and 7.6% in 2019-20.
• The International Monetary Fund (IMF) stated that India's growth remains "quite robust" into the future while marginally downgrading the country's growth projection to 7.3 per cent in 2018 and 7.5 per cent in 2019 due to high oil prices and a tight monetary policy regime.

The debt-equity ratio is the ratio which shows how much debt the company has vis-à-vis its equity. It is also known as the “risk ratio” or “gearing”. It is a balance sheet ratio which analyses the capital structure of the company, whether it is more shareholders’ funds or outside debt.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• The Indian government held the 'Incredible India' road show in New York, Houston, Chicago and St Louis from June 18 to 22 to showcase India as a ‘must visit’ tourist destination. This is expected to double the number of US tourists visiting India over the next 3 years.
• The Confederation of Indian Industry (CII) stated that Indian companies are likely to increase their overseas investments. Citing a World Investment Report of UNCTAD, CII said that India's total cumulative stock of overseas foreign direct investment (OFDI) amounted to USD 155 billion in 2017.

2017 was an incredible year for midcap stocks. During the year, the BSE MidCap Index, the benchmark for midcap valuations, gained 48%, while the BSE Sensex, the broad market index, gained about 28%. Select midcap stocks saw their valuations double. The flood of domestic funds entering the markets was at the core of the rally. Domestic investments into Indian equities outstripped flows from foreign portfolio investors (FPIs) in a cumulative two-year cycle for the first time in 7 years. Domestic mutual funds poured in Rs 1.15 lakh crore in 2017, the highest ever in a single year. The mutual fund collection in 2017 was 80% of the total collection in the last decade. FPIs invested Rs 48,249 crore ($ 7.3 billion), which was lower than the 10-year average of Rs 58,910 crore.

The stock markets have become increasingly volatile over the recent past due to rising US and domestic interest rates, mixed corporate results, bank NPAs, corporate governance issues and many other factors.

Volatility makes investors jittery and unsure about their investments. This often results in selling fundamentally strong stocks impulsively or shifting away from long-term holdings to very short term trading calls. As a result, the investor usually faces losses and often decides to exit from the stock markets completely. This is when a discerning investor sees opportunity by remaining invested and even adding to his holdings during dips.

The most important rule in equity investing is – you have control over your ‘buy’ price; however, the market decides the price of the stock going forward. You will naturally want to invest at the lowest price possible.

Most investors use the price-to-earnings (P/E) ratio to look for stocks available at reasonable prices. P/E ratio is simply the stock’s market price divided by its earnings per share (or EPS). For more on P/E, read our blog ‘Using the P/E ratio smartly!'

P/E is a straightforward and widely used ratio; however, it does have some disadvantages. This is where EV/EBITDA works better. Before we understand the differences between these two ratios, let’s quickly understand EV/EBITDA.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• The International Monetary Fund (IMF) has revised global growth upwards by 0.2% to 3.9% for both 2018 and 2019.
• The US Federal Reserve (Fed) stated that inflation was close to its target and announced its decision to continue gradually tightening monetary policy. The dollar declined and Asian stocks moved southward.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• The International Monetary Fund (IMF) has revised global growth upwards by 0.2% to 3.9% for both 2018 and 2019.
• The US Federal Reserve (Fed) stated that inflation was close to its target and announced its decision to continue gradually tightening monetary policy. The dollar declined and Asian stocks moved southward.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

• US trade deficit widened to $57.6 billion in February from a revised $56.7 billion in January.
• In the case of the China-U.S. squabble, US announced 25% tariffs on $50 billion to $60 billion in Chinese exports to the U.S., including aerospace, information and communication technology, and machinery. China in turn imposed fees on a wide range of U.S. products, including scrap aluminum, sparkling wine and apples.

With the prevailing slippage of the stock market into the bear mode and knowing that this is another fleeting drop that the markets shall soon revive from, investors are often advised to “buy on the dip”.

Well, if this was a trick that everyone in the trade knew of, bear markets would be welcomed with bright smiles and open banks accounts. But, only very few know the skill of striking the hammer when the rod is hot! And we here at StockAxis are here to save the day and make it Bearable for you.

The stock market is a maze…
When and what to buy or sell is the riddle!
And the investor is just a little bit caught in the middle.
Therefore, if you take the wrong direction (make the wrong investment), it is hard to find your way (money) back.

With the mammoth Nirav Modi disaster preceded by the LTCG tax imposition in the prevailing budget 2018, the equity markets have been glooming sorrowfully. Adding a pinch of pessimistic judgement by the media and a dash of scepticism by the investors, it becomes the perfect recipe for chaos and panic selling further drowning the markets.

We are pleased to present to you our monthly market commentary and outlook for this month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for near future. Use our sharp and crisp synopsis to continue building your wealth!

Global Trends

• United States raised its overnight rate three times in 2017, to between 1.25 percent and 1.5 percent. There are speculations of Fed Rate hike for 10 years bond, this would bring sell off across emerging markets.
• World Economy has been expanding in 2017, US PMI stands at 54 & Europe at 58.
• Weak dollar has helped fuel emerging market rally globally.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

Global Trends

• During last year, the dollar declined as global growth outside of the US strengthened. Dollar is currently at its three-year low against the euro with USD/EUR at 1.24.
• In the UK, during the final three months of 2017, GDP grew by 0.5% on the quarter and the labour market strengthened. Whereas in the US, real GDP growth missed expectations slightly at 2.6% but the US jobs reported robust increase with 148,000 new non-farm jobs created in the month.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

Global Trends

• Debt ceiling and government funding expire in the United States: Congress needs to approve government funding and raise the debt ceiling to keep the government funded. With a proper budget now set, both measures should pass.
• The Federal Reserve had been expected to raise its benchmark interest rate a quarter point to a target range of 1.25% to 1.5%. Also hiked growth outlook for economy.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

Global Trends

• President Donald Trump puts North Korea back on a list of state sponsors of terrorism, a designation that allows the United States to impose more sanctions and risks inflaming tensions over Pyongyang’s nuclear weapons and missile programs.
• Moody’s Investors Service upgraded India’s sovereign credit rating for the first time in nearly 14 years , saying continued progress on economic and institutional reforms would boost the country’s growth potential.

Here is a question. When you are driving, do you look at the road behind you through the rear-view mirror or do you focus on the road ahead by looking through the windscreen? Your answer would naturally be that you do both. However, in which direction do you focus more? Behind or ahead? We hope your answer is ‘Ahead’! In case of investing, the price-to-earnings ratio (or P/E ratio) has a similar connotation.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

Global Trends

• US Secretary of State, Rex Tillerson, stated that he wanted to see stronger defence ties between India and the US in the face of China’s rising influence in Asia.
• US President Donald Trump celebrated the Indian festival of Diwali at the White House and conveyed his appreciation to contribution made by the Indian-American community to the US and the world.

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

Global Trends

• US President Trump’s proposed revamp of the US tax system and possibility of another Federal Reserve (Fed) rate hike resulted in the US dollar and global borrowing costs rising.
• Oil prices rose as a result of rising tension in oil exporting countries of northern Iraq and Kurdistan, with the latter voting for independence. Brent crude rose 60 cents to $58.50 a barrel and US light crude rose to $52.74 a barrel.

Each company listed on our stock exchanges has a large number of proud owners – its equity investors. Investing in the equity shares of a company implies that you own the business to the extent of your shareholding. Hence, if the company makes profits, your investment will rise in value, and vice versa. But you may believe that equity investing is ‘risky’. ‘Risk’ in equity investing is usually the result of insufficient knowledge and experience of investing in this asset class. If you want to build your personal wealth to achieve financial security, equity investing cannot be ignored; it’s the most rewarding investment option among the universe of investment options available.

Each company listed on our stock exchanges has a large number of proud owners – its equity investors. Investing in the equity shares of a company implies that you own the business to the extent of your shareholding. Hence, if the company makes profits, your investment will rise in value, and vice versa. But you may believe that equity investing is ‘risky’. ‘Risk’ in equity investing is usually the result of insufficient knowledge and experience of investing in this asset class. If you want to build your personal wealth to achieve financial security, equity investing cannot be ignored; it’s the most rewarding investment option among the universe of investment options available.

A number of positive developments are taking place in the steel sector, which, in turn, has warranted a re-rating of Indian steel stocks. Levy of anti-dumping duties, lack of new capacities, additional demand as a result of the government’s affordable housing initiative, focus on infrastructure development and growth in the automobiles sector will not only limit a further price fall, but will result in steel prices heading north.

Well, this may ‘seem’ like a really dumb question to ask, or to even think about for that matter, but in actuality, it has far more depth than it reveals. I mean given a choice, who would like to invest in a company that makes losses, if there is an alternate company on the table which makes crores of profits? And yes, why would you want to run a business or even invest in one, which say, hasn’t made “money” in the past 3 or 5 or even 7 years for that matter? It just doesn’t feel right, right?

We are pleased to present to you our monthly market commentary and outlook for the forthcoming month. The ‘StockAxis’ Market Intelligence’ is a quick update on the markets for the month gone by and our view for the next month. Use our sharp and crisp synopsis to continue building your wealth!

Global Trends

• The International Monetary Fund (IMF) downgraded the 2017 US growth forecast from 2.3% to 2.1%; however, it maintained its overall global economic growth forecast of 3.5% and 3.6% in 2017 and 2018 respectively.
• The IMF also cut the UK growth forecast from 2% to 1.7% for 2017 and retained the growth forecast at 1.5% for 2018.

At the start of every month, we collect and publish the top news that affected Indian equity Aprilkets the month before, to help our readers be in touch with the overall Aprilket conditions and thereby make sAprilter and informed investment decisions. Continuing our trend of our exclusive monthly newsletter, we again bring to you, all movers and shakers for the first month of FY2018. Hope you find the newsletter insightful and have a good time reading it. Sit back, and enjoy:

At the start of every month, we collect and publish the top news that affected Indian equity markets the month before, to help our readers be in touch with the overall market conditions and thereby make smarter and informed investment decisions. Continuing our trend of our exclusive monthly newsletter, we again bring to you, all movers and shakers for the last month of FY2017. Hope you find the newsletter insightful and have a good time reading it. Sit back, and enjoy:

If you’re wondering whether the emphatic victory BJP witnessed in the all important state of Uttar Pradhesh, alongside Uttarakhand too, and also readying to form governments in Manipuar and Goa is reason enough to drive markets crazy (a 150 point ↑ crazy), the answer is yes. I mean why not??? This phenomenal victory sets the foundation for its emulation in the 2019 general elections. It also gives a clear message that Mr. Narendra Modi and his reforms are here to stay. All the reforms that have sprouted in the past 30 months including the banking sector cleanup, check on tax evasion and black money recovery, focus on ease of doing business in India, the Make in India program, Demonetization,

There are hardly any things that are more valuable to an investor, well the long term ones, than to read the legendary Warren Buffett’s annual letter to the shareholders of Berkshire Hathaway. Remember, it’s not some ordinary annual letter of a company that just gives updates about its operations, it’s a lot more. These letters come loaded with ‘holy’ investment advice and there is a lot that investors can learn from the man’s signature wit and his perceptive thinking. This time’s letter was no different. He covered his usual range of topics ranging from performance of Berkshire Hathaway and its operating units to prospects of the US economy to advice for corporate executives and individual investors.

At the start of every month, we collect and publish the top news that affected Indian equity markets the month before, to help our readers be in touch with the overall market conditions and thereby make smarter and informed investment decisions. Continuing our trend of our exclusive monthly newsletter, we again bring to you, all movers and shakers for the second month of CY2017. Hope you find the newsletter insightful and have a good time reading it. Sit back, and enjoy:

The Indian travel and tourism sector has emerged as one of the key sectors, contributing handsomely to our GDP. It has been one of those sectors that has been driving the growth of the services sector of India. However, its success or failure has always been linked to the prospects of growth in the hospitality industry on the outer level and the maturation of the hotel industry on the inner level. The hotel industry, being one of the most ignored industries in the lot, is still expected to generate more than 2.3 million jobs in India. Have a look at our outlook for the sector:

Every month we collect and publish the top news of the past 30 days, to help our readers be in touch with the overall market conditions and thereby make smarter and informed investment decisions. Continuing our trend of our exclusive monthly newsletter, we again bring to you, all the news and events that affected the Indian Stock Market for the first month of 2017. Hope you find the newsletter insightful and have a good time reading it. Sit back, and enjoy:

Before we start anything, here is a powerful quote from the man whom the great Warren Buffet describes as his 'partner', Charlie Munger : “The big money is not in the buying and selling … but in the waiting.”

There has always been this notion in the minds of investors, that, “If I am smart enough, I’ll definitely compound my profits by dealing in stocks.” But what exactly does ‘smart enough’ mean?

(a) Is it knowing all the publicly available information about the company?

Every month we collect and publish the top news of the past 30 days, to help our readers be in touch with the overall market conditions and thereby make smarter and informed investment decisions. Continuing our trend of our exclusive monthly newsletter, we again bring to you, all the news and events that affected the Indian Stock Market for the last month of 2016. Hope you find the newsletter insightful and have a good time reading it. Sit back, and enjoy:

Contrary to most analysts who have been bearish on market’s performance due to demonetization, India’s very own Warren Buffet, Rakesh Jhunjhunwala advises investors to invest in stocks. He, in an ET Interview, shows confidence on the fact that demonetization-induced situation will normalize sooner than expected and that selling by FIIs is likely to reverse. He also quotes, “Demonetization is history. If you have money, put it in stocks.” which shows his bullishness towards Indian equities. Enjoy the Edited excerpts:

Every day, more and more evidence is seen to be emerging that investors have started to doubt their decisions with regards to their stance on equity holdings. There has been an increasing predicament on whether the thrill to buy valuable and growing businesses is actually worth it as of now? Also, there is a clear ambiguity on how risky the market is given the current state of things! Well, let’s put an end to this equivocation and also get to know another aspect of how to look at markets in such a volatile scenario. We shall understand that how high risk perceptions create opportunities for investors, and how to identify catalysts that indicate a reversal.

Last week, the Finance Minister of India - Mr. Arun Jaitley announced a host of discounts and concessions to encourage people throughout the country to opt for digital payments. Some of the highlights of the same being (a) 0.75% discount on petrol and diesel, (b) no service tax on digital transaction charges/MDR of up to Rs. 2000, (c) 10% discount on buying general or life insurance policies of public sector insurance companies among many others. The message is quite clear:

“To encourage people to go digital and transform India into a ‘cashless’ economy.”

Last week, the Finance Minister of India - Mr. Arun Jaitley announced a host of discounts and concessions to encourage people throughout the country to opt for digital payments. Some of the highlights of the same being (a) 0.75% discount on petrol and diesel, (b) no service tax on digital transaction charges/MDR of up to Rs. 2000, (c) 10% discount on buying general or life insurance policies of public sector insurance companies among many others. The message is quite clear:

“To encourage people to go digital and transform India into a ‘cashless’ economy.”

November had a truly historical event, one that the Indian investors have seen just twice before (1946 and 1978), making most major indices register some of the biggest ever intraday falls; the impact of which is still seen in the market. The month turned out to be a totally different experience for many and a forgettable one for most. We bring to you the movers and shakers of the Indian stock market, the ones that actually made a difference for the month of November 2016, so sit back and enjoy:

Demonetization of Rs. 500 and Rs. 1000 notes:

• On the 8th of November, the Prime Minister of India, Mr. Narendra Modi announced to demonetize almost 85% of our total currency of Rs. 15 lakh crores. The move is aimed at eradicating black money and slush funds operating since Independence and also cutting out all possible forms of funding to terrorists.

For a little more than a week now, demonetization of high value notes (Rs. 500 and Rs. 1000) has been polarizing the country between those who support the idea and those who are against it. The move has had a big impact on the stock market. The BSE Sensex has crashed more than 1800 points with the broader Nifty50 index tanking by almost 625 points in the last 8 trading sessions. A lot of investors are withdrawing capital from stocks. Some, because they are out of funds (since the currency they had at their homes no longer works) and others, well because they simply expect an even bigger crash!

This panic was nothing but complimented by the victory of controversial US presidential candidate Donald Trump just before the announcement of this demonetization scheme by our Prime Minister, Mr. Narendra Modi. Add to it, the fears of a likely Fed Rate hike in December this year.

Like we saw in one of our previous articles, on the ‘Law Of Supply & Demand – An Analyst’s Point Of View’, we should now be well versed with the fact that institutions like mutual funds, pension funds, hedge funds, insurance companies and banks generate that big demand which eventually pushes the stock price up or down, depending on the quantity and speed with which they buy or sell. So what do they have to do with the decisions that you make? Accepted, that you might have done your analysis on the earnings, revenues, peers, the industry as well as the market scenario; but the fact that most of us aren’t aware about, is that these big buyers account for the biggest slice of daily market activity. For example, last year, FIIs and DIIs traded securities worth more than Rs. 31.1 lakh crores together as against the overall Rs. 51.1 lakh crores; i.e. more than 60% of the overall traded value.

Cement is one of the core industries of India that plays a vital role in the growth and development of our country. We are the second largest producer of cement worldwide, with the industry expanding on back of increasing infrastructure activities and demand from housing sector over the past many years. However, in the recent times, muted demand, excess capacity and declining prices lead to a short term downfall. Here are some of the most important triggers that we think will help take the industry to levels like never before:

Summary:

• India is the second largest cement producer in the world, with close to 400 MMT of capacity currently and an average capacity utilization rate of 70% in FY2016. Thus, with a 282 MMT output (70% of 400 MMT), Indian cement production accounts for around 6.7% of the total world production.

Every month we collect and publish the Top news of the past 30 days, to help our readers be in touch with the overall market conditions and thereby make smarter and informed investment decisions. Continuing this trend for the third consecutive month, here are the movers and shakers of the Indian stock market for the month of August 2016, have a look:

Good Corporate Earnings

• As of 31st August 2016, 45 of the 51 companies that form the benchmark Nifty50 index had declared their Q1FY17 results.

After all our articles in which we’ve covered factors that are to be considered while selecting a stock, like quarterly and annual earnings, stock price relevancy, P/E ratios, portfolio diversification, new products, management changes, supply & demand, correct time to enter, etc., we now move on to the a relatively ignored parameter, the ‘Industry Group’ of a stock.

Remember, more than 50% of the market winners usually belong to leading industries. Roughly half of stock price movement is driven by the strength of its respective industry...

Before we start, just ask yourself these 5 questions:

• Do you still remember the stock market crash of 2008 or the bloodbath that the world markets (including India) witnessed during the Yuan devaluation in 2015 or take the most recent Brexit referendum for that matter, and how it eroded your precious hard earned wealth?
• Do you still curse yourself for waiting that just that little while longer and eventually booking an even bigger loss?

Following the trend that we started last month, we bring to you our second monthly newsletter in 2016 for the month of July. With not many events happening around, be it domestic or global, have a look at the market performance, which was pre-dominantly driven by corporate Q1FY17 results and a positive FII/FPI sentiment:

Good Corporate Earnings:

• As of 31st July 2016, 25 of the 51 companies that form the benchmark Nifty50 index had declared their Q1FY17 results.

Update (10th Jan, 2017): This report was published by StockAxis on 2nd August, 2016. The conclusion being as follows: “Hence, one can say that the fertilizer industry can achieve its previous highs considering the approach of the government towards agriculture and allied activities…” and that is exactly what is happening right now. Have a look:

For the first time ever, we bring to you an exclusive monthly newsletter covering all major events in June 2016 that helped the Indian equity markets witness its ups and downs. Have a look at the Part 1/3 of our monthly newsletter and enjoy the seen and the unseen aspects of the news which actually mattered:

Rexit

• The weekend email by Indian Central Bank Governor Raghuram Rajan to his colleagues conveying a sense of finality on his intention to not to seek a second term at the Reserve Bank of India (RBI), came as a surprise to all. Everyone expected the stock market to react negatively on monday (20th June, 2016), as all believed that Rajan’s bold policy decisions were instrumental in stabilizing the rupee and controlling the inflation.

After covering Rexit, and the FDI changes which were perceived as by many as a move to blunt the hangover effects of the Central Bank Governor, Raghuram Rajan’s unexpected exit decision from his office, we now bring to you the Part 2/3 of our June 2016 monthly newsletter. Have a look at the our topic in focus:

Monsoon Onset

• 2016’s best news for India has been the “above normal” rainfall that the IMD has predicted after two consecutive years of droughts. Rainfall, which is the lifeline for lakhs of farmers in India, has been disappointing for the past two years, is expected at 106% of the Long Period Average (LPA).

Coming to the last part of our June 2016 monthly newsletter, after covering Rexit, FDI Changes and the possible impacts of this year's monsoon, we now look at the expected outcomes of the scheduled US Federal Reserve Meet, analyze last month's performance and finally give concluding thoughts on the Indian stock market. Have a look:

Fed Rate

• Britain's exit from the 28-nation European Union was something that came as a surprise to financial markets across the globe. Shockwaves travelled across most of the financial markets on Friday i.e. 23rd June, 2016 after the outcome of the UK referendum.

The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But not all of them have yet tasted success because of the heavy initial investments that are required to break even and compete with other companies. The Indian Retail Industry is gradually inching its way towards becoming the next boom industry. Here are the triggers for the same:

Summary:

• Retail sector in India is one of the largest contributors to its GDP. It accounts for around 8% of India’s employment and contributes to over 10% of the GDP.

The United Kingdom has held the referendum for whether to remain in or leave the 28-nation European Union (EU) on 23rd June, 2016 i.e. today; the event which is termed as the most important global event of the year and is expected to have profound implications for various economies across the world. Let us have a look at the IMPACT it would have on the Indian economy:

• According to the Commerce and Industry Ministry, India's bilateral trade with Britain stood at $14.02 Billion in 2015-16 ($8.83 Billion in exports and $5.19 Billion in imports). Thus, the trade balance was a positive $3.64 Billion. This would be affected as a possible Brexit is estimated to shrink Britain’s GDP by 360 basis points in the next two years, shrink the employment rate by 160 basis points and the pound by around 15-20%.
• There are around 800 NRI owned businesses in the UK with close to 110,000 employees. Also, India invests more in UK than the rest of the Europe combined; the key factor for this investment being the free cross border access to the European markets from one of its best economies as of date. Brexit ceases them of this privilege bearing a cloud of uncertainty on future investments.

The year 2015 is considered to be an inflection point for the Indian Media & Entertainment (M&E) industry. It has now positioned itself on the cusp of a strong phase of growth backed by digitization and increased consumer demand. Following are the key triggers that we think will make M&E the sunrise sector of our economic growth:

Summary:

• The Indian M&E industry which is valued at close to $20 Billion is expected to reach $29-30 Billion by 2019 and more than $62-63 Billion by 2025. This year, it registered a growth of close to 13.5% over its value in 2015.
• The industry is divided into 9 segments. Their growth since the past 6 years and the future prospects are as follows:

Indian Pharma has emerged as one of the most disruptive and profit making industries. It still has the legs to grow exponentially, but will have to watch out for the regulatory interventions that are on a rise since the last 15 odd months. Have a look at some of the key points that will help the industry to up the ante:

Summary:

• The Indian Pharmaceutical market has been on a roll since the last 2-3 decades and has witnessed the kind of growth that no other sector has experienced.
• The sector is currently valued at around $25-27 Billion ~ 3% of the global pharmaceutical industry in terms of value and 10% in terms of volume. It is poised to reach $55 Billion in the next 4 years.
• The Generic Drugs segment dominates the market with a 70% share in terms of revenues making it the largest segment in the Indian pharmaceutical sector. Similarly, Over-The-Counter (OTC) medicines constitute close to 21% and Patented Drugs occupy the remaining 9% of the total market.

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The Indian Chemical Industry is one of the most established and fast growing sectors of our country. It plays an integral role in our economic development thereby serving as a critical input for the industrial and agricultural development. This sector has always witnessed considerable growth in the past and is currently poised to further this momentum Here are some of the most important triggers that we think will help its cause:

The Reserve Bank of India (RBI) yesterday cut the Repo Rate by a further 25 basis points to bring it down to 6.50% at the first bi-monthly monetary policy meeting of the fiscal year. This revised rate is at its lowest in more than five years. The aim was to ease the liquidity constraints in the banking system, giving hopes for the industry and consumers that interest rates in the economy will fall faster than earlier. RBI chief Raghuram Rajan at the post-meet press conference said, “Further monetary policy decisions will be driven by outcome of the monsoon, monetary policy transmission, trajectory of core inflation.”

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