The Bull Run Is Here To Stay

Karvy Finapolis’ event —“Is this the mother of all bull runs?” — evoked a thunderous response from investing public recently in Hyderabad.

- A.Saye Sekhar

Well, the bull run is here to stay. It just took 21 sessions flat for the Bombay Stock Exchange’s Sensex to sprint from 30,000 to 31,000. Karvy’s Finapolis Knowledge Series discussion by experts on May 5, 2017 at Hotel Trident too echoed the same feeling. The bull market is, indeed, here to stay.

However, experts want investors to exercise caution not to be overwhelmed by this. Instead, they should understand the nuances and ramifications and move on.

Ramesh Damani, Vetri Subramaniam, Prashant Jain and Madhusudan Kela were engaged in an enlivening discussion by star anchor of CNBC-TV18 Latha Venkatesh who herself is an expert in the stock markets and financial matters.

Group President and Head of Equity of UTI AMC Vetri Subramaniam has underscored the need for the investors not to be carried away by the positive or negative noise around the Goods and Services Tax (GST) regime coming into effect from July 1.

The investors should understand that GST would accrue additional benefits to the Government through fiscal betterment, to businesses through higher turnover, to consumers through simplified taxes; and the overall economy by formalization and integration. Thus, this would benefit investors in stocks.

Prominent investor Ramesh Damani, however, felt that every bull run would result in soaring of the indices and the bourses grew robust. There was a pattern in the bull runs, which could be in 1992, 1994, 1999 and 2008.

Executive Director and Chief Investment Officer of HDFC Mutual Fund Prashant Jain, was skeptical. He felt that 90% of investors would not really make money in the bull markets owing to their late entry. By the time they enter the markets, “the party is over.”