November 19, 2019
Almost a month back we suggested you to be *Greedy* as we saw recovery in economy in some of the important factors. Now it’s time to be cautious again especially for share market based investments. Share markets have surged like anything in last one month. Mainly due to the confidence in Indian economy and its recovery, hope of current government coming back as also endorsed by huge investments by foreign investors.
RBI is due to announce its policy rates for which meeting is already on. We at InvestmentMitra feel that against popular perception RBI may not increase policy interest rates and if it all they do, it should not be more than 25 basis points.
This sudden jump has put equity markets in overbought zone which is more due to buoyancy or overenthusiasm than fundamental improvement in corporate performance or economy. We expect markets to take roller coaster ride from here at least till election and future course will depend on the election outcome alongwith domestic economy’s performance and global factors.
In the light of above we suggest you to book some profits and sit on liquidity to take advantage of any correction in stock markets. Before you book any profit, please consider following on which investment to redeem:
- Exit charge
- Tax implication
- Overall asset allocation
- Diversification among issuers
Do take help of your investment advisor for deciding action on your portfolio. And if you need any help in this regard from us, we would be very happy to offer you our services.