Indigenous Investors Weekly Insights!
Top 3 well curated stories from the stable of Indigenous Investors incase you missed them. These can range from finance to sports, depends on what made the headlines. Stay tuned.
At Indigenous Investors, we pride ourselves on a simple but powerful habit: reading for 5 hours every single day. It’s something we’ve shamelessly borrowed from the Oracle of Omaha, Mr. Warren Buffet. To share the wealth of knowledge we uncover, we’re bringing you 3 top stories that you may have missed this week. If there’s a topic you want us to cover, drop us a line! We’re always excited to read more and refine our process.
From the team of Indigenous Investors, we wish you and your loved ones a Happy Diwali and a Prosperous new year! We hope that the new Hindu year greets you with joy, happiness and a lot of laughter.
Story #1: RBI brings back 102 tonnes of Gold this Dhanteras (click here)
When we talk about Diwali, what better start than talking about gold! Keeping in mind the global uncertainties, the Reserve Bank of India has shipped 102 tonnes of Gold to secure locations in India from the vaults of Bank of England in London. With this move, over half of gold owned by RBI is now stored domestically.
Contrary to some misinterpreted news that India has PURCHASED gold, we wish to clarify that the gold already belonged to India and was stored abroad with the Bank of England.
Story #2: Nifty 50 tumbles over 6% in October (click here)
Everyone is more than aware of the uncomfortable valuations Indian stock markets are trading on. Ask any random person on the street and he will tell you that the ‘market is just one excuse away from falling’.
The Indian markets have already witnessed a selloff after China’s central bank amended its policies to attract investment and the trend continued slowing earnings growth for the September quarter, elevated valuations, persistent selling pressure from FPIs, escalating geopolitical tensions in the Middle East, and increasing uncertainty surrounding the upcoming U.S. presidential election.
The Indian business news channels are plagued with the narrative that the Indian listed companies have fell short of expectations. We agree that to some extent they have as we are seeing some pressure from rural consumption, car sales numbers and a slight slowdown in the top line. However, it is worth noting that these estimates are also affected by the sentiment the markets are going through.
Since the markets are already touching new peaks, the estimates are skewed upwards to make sense of the new valuations attained by these companies. Sentiments are not sustainable, and consequently, the estimates that are based out of these sentiments will also not remain stable.
Story #3: The shifting consumer preference towards E-commerce this Diwali (click here)
Diwali is not as bright for small shop owners as more and more people have preferred shopping online this season. As per the estimates of Confederation of All India Traders (CAIT), the offline stores are poised to do a business of 4.25 lakh crores INR, up 13% from the same season last year. However, it is the online stores that have taken the lions share with an estimated business of 10 lakh crores.
More than the cheaper prices, the hassle of traffic and parking, overcrowded markets and difficulty of finding products of all categories at one place are the prime reasons for people preferring the online channel.
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