jeudi 1 septembre 2016

The strength of this bull market

Day before yesterday, the CCI announced fines of Rs 6700 crores on cement companies. This effectively wipes out anywhere from 6 months to a year of profits for most of the companies! And more importantly, prevents them from doing the things that allowed them to make the huge profits in the first place. Obviously, this was a big dampener for markets.

But the market just shrugged this off, and if you hadn't seen the news, the move in cement stocks would have seemed like just another trading day!

In telecoms however, it wasnt just another trading day. Reliance Jio's announcements to make Voice calls free, and slashing data costs almost 80% took the wind out of Telecom Stocks. Even large players like Bharti crashed 7%, with Idea dropping over 10%! But there was negligible impact on Nifty.

All of this signals that there is significant steam in this bull market.

Fasten your seat belts and hold on tight. In the next month, the FCNR deposits from 2013 mature, and a lot of that money will find its way to Indian equities.

For many years, Deepavali has been a quiet affair on Dalal Street. This year, however, it is time for fireworks!


The strength of this bull market

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