The future trend in the stock market will finally get defined by the aggregate earnings expectations from individual companies in an economy.
Coronavirus outbreak, weak GDP growth, fiscal deficit, and rising inflation dominate February
We were expecting the RBI governor to step in and provide liquidity and rate cuts. The RBI governor did just that today. He declared a string of measures like cutting the Repo and the reverse repo rates, cutting the Cash Reserve Ratio (CRR) by 100 basis points, injecting liquidity of Rs 3.74 lakh crores in the system etc. All this should cause the interest rates to go down (and hence bond prices to go up). At the time of writing this piece, the interest rates were indeed down.
About 37 per cent and 60 per cent of large-cap funds managed to beat the index returns over a five- year and 10-year period respectively. In the process, many gave inflation-beating returns to their long-term investors, despite the recent market correction. It underscores the importance of a hands-on approach to investing and the key role of active equity fund managers.
To ensure that you make the most of this lockdown in terms of financial know-how, and have the essentials covered, we have designed a 15-day action plan for you. Just one hour every day for 15 days will ensure that you are at the top of your finances. You can reserve weekends solely for family time.