World Economics at a Glance & Advantage India.

Out of all negatives biases shown by world Media – I will tell you that there are many Good news to cheer as well!

Rupee valued 15% lower against Dollar from recent highs –

This directly points to 15% discount across all business run in India – for all those dollar rich nations who wants to make purchases in India. First you will see real estate infused with fresh lease of cash inflow, second NBFC’s will be re-capitalised – as they are the ones who will finance closer to 60% -70% of realty – as PSU’s will be more cautious in their lending.  And about 50% of manufacturing sector which can borrow loans from these NBFC’s against rich estate which they own. Mind you – NBFC’s still need to cater to around 40% – 50% retail demand in terms of retail housing finance under ‘home for all’ schemes by prime minister.

SEBI’s Agenda to Re-calibrate – MidCap, SmallCap & Large cap mutual funds:

Market Regulator – Sebi had asked fund houses to segregate their schemes into distinct categories, based on their underlying investment focus or style. To comply with Sebi’s norms, several funds have been repositioned, renamed or merged. Given that this is an industry-wide exercise, it is likely that schemes in your portfolio too may have undergone changes.

This is actually a major exercise. Yes, even this is partially accomplished in a phased manner – large cap stocks supported the indices, while mid cap & small cap portfolio’s were shuffled by mutual fund companies all these while. Evidence for this is – even with Nifty Index @ 11,700 – most of our portfolio’s filled with Mid & Small cap stocks are all still lower by 40-50% compared to their previous highs.. Now next phase of market until March – YOU CAN EXPECT large cap stocks to go down, while Mid-Cap & Small cap stocks will try to hold the market up with their balancing act.

Trade War between US & China – will lead to Advantage India:

Trade war of this magnitude this US & China is really fantastic from an Indian economists perspective. There were very strong trade exchange programme that were existing – between developed economies like US & China for decades & were seeming very comfortable. Trade wars like these can only get disruptive in terms of changes to these strong trade ties – changes will only benefit second fiddle nations especially India. US being the biggest consumer – China being the biggest manufacturer, it will take decades for US to discover nitty gritties of manufacturing – While it will take China decades to find strong consumers like US & remember they are already stock surplus. Now i will leave it to your imagination how best India could benefit from this equation :).

As in Life whenever when 2 strong individuals fight – the 3rd always derives maximum benefit. The world as well – will live for ever as long as – its we humans who fill this world. Cheers to good times! 🙂