From The Desk Of Chairman

FROM THE DESK OF A CHAIRMAN           

 

April 05, 2018.

 

Re: Eclipse on Economy and Capital Market.

 

Dear Investors,

 

We know and understand the phenomenon of Eclipse. When Moon passes between Sun and Earth, it is Solar Eclipse. When Earth comes between Sun and Moon such that there is a shadow of Earth on Moon, it is the Lunar Eclipse. We know it well that Eclipse is the temporary phenomenon and it would be normal again.

 

Something similar is happening to the Economy. Eclipse seems to be occurring on Economy on account of factors like;

 

  1. Trade Wars – US v/s China.
  2. Crude Prices reaching $ 70.
  3. FED rate going up.
  4. Bank Scams like Nirav Modi.
  5. Politics of Elections; opposition showing everything is bad and government trying to prove that everything is fine.

 

As a result, we feel like a gloom situation. Whenever there is even temporary stop in growth or decline, we turn bearish and think negative. We are more influenced by recent events and see no road ahead. We become pessimist.

 

In case of Sun or Moon eclipse, we accept this as temporary and do not panic. In case of Economy also, we should adopt similar approach. Numbers of the above factors would not have great bearings on the fundamentals of economy. To support my argument that it is just an eclipse; I put forward the following points:

 

  1. GDP Growth rate is @7.2%.
  2. Corporate Earnings are growing.
  3. FOREX Reserves are at $ 418 billion.
  4. Government spending is high.
  5. GST and other Reforms ultimately going to benefit all. Numbers of tax payers and collections have gone up substantially.

 

So we should learn to see beyond eclipses and take positions in Capital Market. Eclipses provide good opportunities for investment.

 

Financial Year 2017-18 has ended. It has been a good year for businesses in general and Capital Market in particular. At the beginning of year SENSEX was at 29575 and NIFTY was at 9165. They have closed SENSEX at 32970 and NIFTY 10114 as on 27th March 2018. SENSEX has rose 11.5% and NIFTY has gone up by 10.35%. These returns have been moderated in last two months post budget. Long term growth curve should resume when eclipses get over.

 

Our Company is in Portfolio Management since 2009 and has been delivering good returns. We have put up a very good team for Research. We are coming up with new research reports on companies, sectors, industries regularly. We are also writing new blogs at regular intervals. Please refer blog link at the bottom of our website www.conceptsecurities.com. You can read our latest blog on link http://www.conceptsecurities.com/blog/2018/04/05/edge-over-investing/ Our Fund Manager Siddharth is posting his quarterly report `From the Desk of a Fund Manager’ in next 1-2 days. You can get valuable inputs from us.

 

Happy investing through CONCEPT.

 

Yours truly,

 

 

(Hemant Desai)

Yours truly,
Hemant Desai
[ Chairman ]

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