"BE GREEDY WHEN OTHERS ARE FEARFUL.” Subject :
During this period, I view the market downturn as an opportunity to acquire quality stocks at lower valuations for long-term investment. As mentioned above, I am particularly interested in key levels for potential entry points. I wanted to share these insights with all of you, hoping you find them helpful. Thank you, everyone!🙏🏻
The recent downturn in both Indian and global stock markets can be attributed to several
key factors:
1. Monetary Policy Shifts: The U.S. Federal Reserve's recent decision to reduce the number of projected interest rate cuts for 2025 has heightened investor concerns.
2. Rising Treasury Yields: A significant selloff in long-dated U.S. government debt has pushed 10- and 30-year Treasury yields to their highest levels in nearly seven months. This trend poses a threat to stock valuations, as higher yields make risk-free government debt more attractive compared to equities.
3. Geopolitical Concerns: The potential return of Donald Trump to the U.S. presidency and his proposed economic policies, have raised fears of increased inflation and global trade tensions. These uncertainties contribute to market instability.
* Escalating conflicts in regions such as the Middle East have increased market volatility and investor uncertainty.
4. Foreign Investor Behavior: In India, heavy selling by foreign institutional investors has exerted downward pressure on markets. This trend is influenced by global monetary policies and a reduced appetite for risk amid prevailing uncertainties.
5. Sector-Specific Declines: Sectors such as financials and information technology have experienced notable losses, further dragging down market indices.
These combined factors have led to a bearish trend in both Indian and international stock markets in recent weeks.
About Reliance industries limited 📉:
1. Weak Performance in the Oil-to-Chemicals (O2C) Segment: RIL's O2C business, a significant revenue contributor, has faced challenges due to shrinking margins amid global oversupply. In the second quarter of FY25, the company reported a 5% decline in net profit, largely attributed to poor performance in its oil refining and petrochemical business. This segment was significantly impacted by cheap Russian crude oil flooding the market, pushing product margins lower.
2. Delays in IPOs of Jio and Retail.
3. Slowing Growth in the Retail Business: RIL's retail division has encountered slower growth, influenced by factors such as rising real estate costs and increased.
4. Broader Market Trends and Investor Behavior.
#valueinvesting. #indianstockmarket. #Reliance
