Festive Edition
In this festive edition, our fund manager shares his views on ongoing market corrections and future outlook.
Dear investors,
I hope the festivities are keeping your spirits up even if your portfolio may not be. As we step into the auspicious festive week, I am staying close to home and talking about Indian markets in this special edition of Perspective. Today, I am not talking about what’s going around the globe, with the US, or China, or anyone else. Perspective #10 is a special edition where our CEO and Fund Manager, Divam Sharma is addressing the elephant in the room - market corrections. Here’s what Divam thinks:
“September brought shine to Indian markets as the Fed cut rates in the US but things turned around quickly after China announced a stimulus package. Markets started seeing a fall as funds went from India to China.
This continued well into October, making it a particularly challenging month for Indian markets. Nifty dropped over 7% and Sensex lost about 4,800 points, marking this as one of the roughest pre-Diwali months in over a decade. But as unsettling as this may seem, it’s worth remembering that downturns like these are often part of the market’s natural rhythm.
The recent pullback reflects a mix of global factors. Rising oil prices, inflationary pressures, geopolitical tensions in the Middle East, uncertainty around US elections, and heightened bond yields in the U.S. have created a temporary cloud over the markets.
Domestically, we’ve seen a rise in profit-booking in some high-performing stocks, especially after the solid rallies earlier this year. The global macros have surely affected the FII flows in India but the DIIs and SIP flows via mutual funds stay intact, and these are exactly the things that have markets running for over two years now.
However, history tells us that the market tends to recover, particularly during the festive season, with Diwali often marking a positive turn. This being the Diwali week, we have already started seeing the candles turn green since Monday” says Divam.
At Green Portfolio, we always talk about discipline and patience. And it’s times like now when our patience is actually tested. What we’re seeing right now is a flash crash, i.e., short periods of time when markets sharply correct. However, note that flash crashes are a part of the bull runs and markets will start to recover soon.
The one thing we like about corrections is that periods like these often reveal investment opportunities as quality stocks in resilient sectors become more attractively priced. Our focus sectors continue to show strong fundamentals despite the recent dip, and they continue to align well with the government’s continued push toward growth and sustainability.
Our strategy remains grounded in patience and discipline. Corrections can be seen as short-term turbulence - a temporary phase that, with perspective and the right strategy, can lead to attractive opportunities. Rest, our team will continue to monitor market developments and adjust your portfolios when needed to ensure that we’re on track to meet your financial goals.
I hope Divam’s comments gave you some reassurance in case you were panicking. Rest assured that we’re here to navigate these market cycles together, and as always, please feel free to reach out if you’d like to discuss your portfolio or the current market dynamics further.
Now that we’ve addressed the big looming issue, let us move to some happy news.
Introducing Samvat 2081 smallcase by Green Portfolio 🎇
Following our long-standing tradition of Diwali special portfolios, we are back with the fourth edition of our Muhurat smallcase this year: Samvat 2081 - Diwali Picks.
Diwali is the most auspicious time of the year for new beginnings and investments. Every Diwali, we curate a special portfolio to help you take the first step towards wealth creation. This year too, we have created a basket of stocks in our Samvat 2081 smallcase. With just eight stocks from three different sectors, this portfolio has companies poised for growth in the next year.
So, if you’re thinking about a new beginning this Diwali, Samvat is here for you. With a monthly fee of just ₹266, Samvat is perfect for anyone looking to start investing this festive season.
As a small Diwali gift, we’re offering a 20% discount using the code DIWALI2024 on subscriptions for new users. Hurry because subscriptions are open for a limited period only!
P.S.: If you’re already subscribed to any of our portfolios, we have a special 25% discount on the subscription on Samvat 2081 smallcase for you. With code MAHURAT2024, you can subscribe to the Samvat portfolio for just ₹250 per month!
Check out the smallcase here: Samvat 2081 - Diwali Picks
As always, subscriptions to this portfolio are open for a limited time only. This makes Diwali the perfect occasion to start afresh or top up your investments!
We hope this Diwali brings light into your life and prosperity to your financial journey. Happy Diwali!
Wishes & Regards,
Team Green Portfolio