Tuesday, 13 August 2019

Financial Market @ August 2019


Greetings of the Season,

Post Budget and RBI credit Policy announcement, the affirmation statement deriving out is that economy growth is slowing down. Housing Finance Companies like ILFS, DHFL and many more in said league have mismatch in their Balance Sheet due to not many takers in new set of scheme /market of Real Estate. Good thing is that undermining the grieve scenario Central Govt. has initiated support to good debt through banking channels. The cut of 35 basis points only shows the strong commitment of Central Bank towards the cause.
Where-in there has been dip in demand as signal of slowing down of the economy. The positive thing is FDI (Foreign Direct Investment) data has shown positive growth. FII's withdrawal of 3500 cr from equity market is only to divert their portfolio towards debt market to the tune in excess of 6000 cr.

Investment in Selective Debt Fund is the order of the day. Equity Funds are in consideration to slowing down of economy is expected to take back seat for a while.

Long term investors to remain invested and keep participating regularly into equities as with another 5 to 8 percent of correction market should stabilize and look forward. Short term investor should avoid equity market and participate only in liquid plus categories of Fund.

Happy Investing.

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