Do it yourself

 “Commodities” is the most important buzzword in equity markets these days. Chartists, analysts, economists, strategists and traders et. al. are predominantly talking about stocks of commodity companies. The strong rally in the stocks of commodity producers is primarily based on the material rise in the global commodities’ prices, especially in past one year. I analysed the market performance since announcement of first lockdown (25 h March 2020). I also looked at the market performance in three other timeframes, viz., (i)     Since January 2021, because most of the restrictions announced in March 2021 were lifted, US elections were completed and vaccine launches had already begun. (ii)    Since February 2021, because a market exciting budget was presented with strong on infra building and fiscal discipline; and UK exit from EU was complete, and global trade had started to normalize. (iii)   Since April 2021, when a second wave of pandemic sta...

Suggestions for stimulating the economy The number of people cautioning about a deeper and longer economic slowdown in India is rising by the hour. Tata Motor's management has guided for double digit fall in automobile sales in FY20 ( see here ). Most auto companies have announced shut downs; some have also announced significant reduction in the employed workforce. SBI chairman is insisting on urgent need for some stimulus in almost each of his public presentations ( see here ). Most other senior banks and industrialists have also sounded the caution begul ( see here ) The stock markets have corrected sharply in past one year; though the benchmark indices may not be reflecting the correction as yet. The wealth erosion for investors has been material. The market participants are clamoring hard for a stimulus package to bring the economy and market back on path of high growth. Whereas, most businessmen and market participants have echoed the demand for stimulus...

Some food for thought "When my cats aren't happy, I'm not happy. Not because I care about their mood but because I know they're just sitting there thinking up ways to get even." —Percy Bysshe Shelley (English Poet, 1792-1822) Word for the day Intellection The action or process of understanding; the exercise of the intellect; reasoning.   First thought this morning Home Minister Shri Amit Shah made an emphatic speech in the Parliament in support of government's decision to change the constitutional status of the state of Jammu & Kashmir. It sure is a historic and very brave step. The government, especially the prime minister and the home minister must be commended for this unconditionally. I am sure with this determination, the government will be able to execute this decision as planned paving the way for overall development and growth the region. The reply of the home minister to the debate...