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.
Story #1: Rural demand outpaces urban demand for third straight quarter (read here)
A NielsenIQ data highlighted that demand in both, rural and urban areas have softened, however, the demand in rural areas is growing twice as fast as that in urban areas. Urban consumption forms two-thirds of the total FMCG demand. Large players having turnover between 1000 crores to 5000 crores saw the highest growth at 9.6% whereas smaller players with less than 100 crores of turnover saw their fortunes turn for the better after 3 quarters with positive growth. However, giants having turnover upwards of 5000 crores reported lower volume growth and declining value.
Story #2: FII ownership at 12 year low (read here)
FIIs continue to exit the Indian bourses owing to global uncertainties. It also seems that the FIIs are now favouring to keep money closer to them owing to changing global dynamics now that Trump’s Democratic Party has won the elections. There are speculations of the FED reducing rates further and sooner, while China is gearing itself for any surprises that the West can throw on them. There are expectations that the ongoing wars will also come to an end, however, investors expect new trade wars that could potentially shift the balance of power.
Story #3: Rupee hits lifetime lows (read here)
A consequence of the FIIs leaving the Indian shores is that the INR is facing a lot of heat against the USD with the Indian currency falling at lifetime low of 84.37. The fall in the Rupee should ideally push exports higher. In spite of this, India is struggling with maintaining their balance of payments and current account deficits which indicate that the strategy of the central government is still under progress or not working.