Modi 2.0 - Where Should Investors Focus Now?
Dalal Street Investment Journal|June 10, 2019

It looks like Modi’s second term will be more challenging than his first term owing to the daunting economic issues. Will Modinomics pull India out of the quagmire and will investors be rewarded in the next 5 years? Yogesh Supekar takes a stock of the current economic situation and identifies investing opportunities, while Shohini Nath summarises the NDA's focus area for the next term.

Yogesh Supekar
Modi 2.0 - Where Should Investors Focus Now?

While the nation is still digesting the victory of their favorite leader, the Modi 2.0 government has already hit the ground running, putting efforts to put the economy on a higher growth trajectory.

The latest economic data has not been encouraging. The GDP growth has slipped below 6 percent in the latest quarter, Q4FY19. The slowdown was expected given that it was an election year and the whole government machinery may not have been able to focus on the economy. Having said that, the task in hand for the new Modi government, that is Modi 2.0, seems to be daunting.

Indian economy is faced with a slowdown and the risk is that we have not arrested the slowdown yet. Will the economic growth take a U-turn and head northwards from here? After the downslide is arrested, the focus will be on the steps that the Modi government takes to propel growth in the economy.

Current economic challenges

The Indian economy has slowed down due to rising global volatility, normalized monetary policy in advanced economies, trade war and investment re-routing to developed economies. The crude oil price rise has also been a factor that affected the Indian rupee negatively. Having said that the rupee has outperformed other Asian currencies and is the top performer amongst the Asian currencies in the past three months. Unemployment is high and will influence the priorities of the next government. During January–April 2019, almost 42 million people were willing to work, but did not find jobs according to the Centre for Monitoring Indian Economy (CMIE). Such high unemployment rate suggests a bumpy ride ahead and needs immediate attention of the government.

There is a liquidity issue in the market with several NBFC struggling to get access to funds even as, on the ground, it looks like NBFCs with a good track record are able to raise money without much difficulty.

この記事は Dalal Street Investment Journal の June 10, 2019 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Dalal Street Investment Journal の June 10, 2019 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

DALAL STREET INVESTMENT JOURNALのその他の記事すべて表示
How To Invest In An Ageing Bull Market
Dalal Street Investment Journal

How To Invest In An Ageing Bull Market

Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.

time-read
5 分  |
July 29, 2024
Should You Entrust All Your Money To A Single AMC?
Dalal Street Investment Journal

Should You Entrust All Your Money To A Single AMC?

If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario

time-read
7 分  |
July 29, 2024
Wild Swings Engulf Global Equities
Dalal Street Investment Journal

Wild Swings Engulf Global Equities

U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.

time-read
2 分  |
July 29, 2024
U.S. Elections and China's Economy Hamper Commodities
Dalal Street Investment Journal

U.S. Elections and China's Economy Hamper Commodities

Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.

time-read
2 分  |
July 29, 2024
Wealth Building For Retirement Through Mutual Funds
Dalal Street Investment Journal

Wealth Building For Retirement Through Mutual Funds

Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.

time-read
3 分  |
July 29, 2024
Mastering Investment with Information Ratio
Dalal Street Investment Journal

Mastering Investment with Information Ratio

Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool

time-read
6 分  |
July 29, 2024
Plan To Be Financially Independent
Dalal Street Investment Journal

Plan To Be Financially Independent

Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.

time-read
2 分  |
July 29, 2024
❝Technology is the new game-changer"
Dalal Street Investment Journal

❝Technology is the new game-changer"

With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company

time-read
5 分  |
July 29, 2024
What If Donald Trumps?
Dalal Street Investment Journal

What If Donald Trumps?

The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store

time-read
6 分  |
July 29, 2024
Sectoral Gains Make A Mark
Dalal Street Investment Journal

Sectoral Gains Make A Mark

Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures

time-read
2 分  |
July 29, 2024