Participate In A Historic Stock Market Growth Cycle

Participate In A Historic Stock Market Growth Cycle

April 29, 2019 | 10877 Views

These are historic times for the economy. And historic times for the market.
Over the last two trading days (20 September 2019 and 23 September 2019), the stock markets have risen nearly 3,000 points on the Sensex and nearly 900 points on the NSE Nifty. And this is just the beginning of the uptrend. The Indian stock markets are now poised to record historic growth levels as a result of a strong thrust from the government towards reforms.

Friday, 20 September 2019 was a historic day for the stock markets when the Finance Minister slashed corporate tax rates by about 25% of the existing rates. This level of rate cut in one go has never been done in the economic history of the country. The implications of this tax rate cut on corporates and the economy as a whole, is massive. The clear positives are – greater post-tax corporate profits, more spending power to consumers, reviving the capex cycle, etc. all of which will reflect in a massive positive increase in stock prices. This will result in a record-breaking bull run with strong fundamental undercurrents.

New Highs Lead To Even Higher Highs

Over the last two trading sessions, most stocks have made record highs, and history tells us, the next high will be higher than the previous one. We are now on the brink of spiraling valuations.

But Aren't We Headed for a Recession?

You may wonder… we were supposed to be in a recessionary phase, right? Wrong. The truth is – our economy is headed for a transformational growth as a result of structural changes (and not band-aid stimulus packages with temporary benefits). What’s even more important is the shift in sentiment and growth of confidence among investors – domestic and foreign.

What About China?

You may also want clarification on the global trade war, especially between China and the US. At this point, both countries have decided to resume talks, which are expected to end on a positive note. This will be a trigger for another massive positive re-rating of global stock markets (including Indian markets). In a situation of the talks faltering, the US economy has been growing at a healthy pace, which means it will continue to provide a large market for Indian exports.

The RBI's Got Our Back

The RBI too is doing its bit by reducing interest rates, which is another positive trigger for the stock markets. In fact, the RBI has clearly stated that it would go for further extensive rate cuts if further stimulus is needed in the economy.

History in the Making

Don’t miss out on this historic opportunity to grow your equity portfolio exponentially. When you look back on this period, make sure you look back with pride because you grew your wealth during this time, not with regret because you sat on the fence and merely watched in awe. Such a time may not recur till the distant future.

Do What Works

People tend to buy stocks that make them feel either good or comfortable. But in a bull market populated by dynamic leaders that just keep surprising on the upside, these sentimental favorites often turn out to be the dullest laggards.

One should always be invested in the one with the best quarterly and annual earnings growth, the highest return on equity, the widest profit margins, the strongest sales growth, and the most dynamic stock-price action. This type of company should also have a unique and superior product or service and be gaining market share from its older, less-innovative competitors.

NIFTY 18,114.90 -0.35% SENSEX 60,821.62 -0.17% BANKNIFTY 40,323.65 0.73% ADANIPORTS 761.80 -2.25% ASIANPAINT 2,982.40 -0.65% AXISBANK 816.70 1.10% BAJAJ-AUTO 3,866.50 1.64% BAJAJFINSV 18,658.15 0.42% BAJFINANCE 7,710.20 -0.35% BHARTIARTL 694.50 -0.22% BPCL 447.25 -0.84% BRITANNIA 3,690.00 -0.66% CIPLA 896.35 -1.67% COALINDIA 175.90 -3.56% DRREDDY 4,637.45 -0.31% EICHERMOT 2,612.55 -1.91% GAIL 150.50 0.53% GRASIM 1,713.80 -1.83% HCLTECH 1,194.00 -1.38% HDFC 2,903.95 2.10% HDFCBANK 1,680.75 0.27% HEROMOTOCO 2,744.15 -0.46% HINDALCO 470.45 -4.72% HINDUNILVR 2,454.10 0.34% IBULHSGFIN 229.75 -7.80% ICICIBANK 759.30 0.50% INDUSINDBK 1,196.40 1.01% INDUSTOWER 302.00 2.10% INFY 1,719.80 -1.93% IOC 130.70 -0.72% ITC 236.60 -3.31% JSWSTEEL 667.80 -0.93% KOTAKBANK 2,171.40 1.29% LT 1,792.25 -0.75% M&M 887.85 -1.02% MARUTI 7,408.90 -2.20% NTPC 144.90 -2.03% ONGC 157.05 1.32% POWERGRID 194.45 0.21% RELIANCE 2,627.40 0.19% SBIN 502.95 0.00% SUNPHARMA 812.55 -0.71% TATAMOTORS 490.90 -3.37% TATASTEEL 1,296.25 -1.40% TCS 3,498.85 -0.95% TECHM 1,517.45 -0.45% TITAN 2,412.00 0.68% ULTRACEMCO 7,149.60 0.29% UPL 704.35 -1.83% VEDL 323.85 -7.58% WIPRO 682.40 -2.00% YESBANK 13.75 -3.85% ZEEL 308.00 -4.06%