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«Lot of us want to Retire early at 45-50. With life expectancy increasing, u will have to depend on your portfolio for 30 years plus n keep catching up with inflation. So If u r in your 30s-40s, ur working life is 10-15 years & retirement life cud be 30-35 yrs. Having equities in a balanced manner is a must for survival. Ignore short term noise. Build for long term,» said Gurmeet Chadha, Managing Partner & CIO, Compcircle, wealth and asset management firm.
Since September, Nifty and Sensex have declined by approximately 12%, with several sectors experiencing even sharper falls. The foreign institutional investors (FIIs) have been net sellers, offloading about $23 billion from October 2024 to January 2025.
The prevailing narrative attributes this to a weakening Indian economy. However, a closer examination reveals a more nuanced reality. The narrative: A weak Indian economy? The dominant narrative suggests that a weak Indian economy is driving FIIs to sell. This view is supported by India’s GDP growth for Q2 FY25, which was 5.4%, below the typical 6%-8% range.
Overall earnings growth for Indian companies was around 4% year-on-year. However, excluding metals and oil & gas, earnings growth was in double digits. High inflation has seemingly weakened Indian consumer purchasing power, reflected in the slow growth of several FMCG companies.