TATA doesn't always mean Good bye

Air India is back to where it belonged.  TATAs aggressively bid for this debt laden airline and finally won it.

Indian Aviation industry is already struggling and this particular airline has failed to increase market share despite multiple push from government.  Economics experts have already questioned the rationale to buy out this ailing airlines. It doesn't make any economic sense and to greater extent its true.

But that's what it makes this group different from others. Let your heart take some decisions. This was more of an emotional decision than anything else. This group has done business , made profits but never cut off the human or emotional angle.

Chandras tweet said it all...“This is a historic moment, and it will be a rare privilege for our Group to own and operate the country’s flag bearer airline. It’ll be our endeavour to build a world-class airline which makes every Indian proud."

Indeed it's a proud moment for all. Hope Maharaja rules the sky again and bring back those glorious days of this iconic airline.  Our National carrier deserves no less.

Being Bullish or foolish

Sensex touched 60K and there is no sign of slowing down. Is this the time to be cautious and book profit in 50% of exposure?

I believe yes as the numbers are unsustainable and a crash may be inevitable in near future. Liquidity driven rally is driving everyone crazy. Chinese are struggling and huge debt is another factor to watch out for. 

In the end, market is always right and people will justify whichever way it goes. 

Happy Investing!

Disclaimer: Please note that these are personal views of the author. All investors are advised to conduct their own independent research into individual stocks or industries before making any decision. In addition, investors are advised that past stock performance is not indicative of future price action.

Tough road ahead-EICHER

Eicher motor had a dream run on the stock market, thanks to its two wheeler segment. 

Some of the key driving factors were:

1. A whole generation grew dreaming to own a Royal Enfield. As soon as this lot started earning, non one came in their way to stop them to own this beast. There were multiple product launches from various two wheeler companies but this group remained loyal and went ahead with its buying.
2. The "Bahubali" gang- This forms the second lot of buyer and quite loyal to this brand since ages. Dabang look has to be supported by this machine.

Why its losing the track:

1. Next Generation wants to look "Cool" and not "Manly"- There is a slowdown in Eicher sales and one of the prime reason being-lack of interest from Generation next or it could be various "Cool" bikes which are available. Due to multiple available options and lack of any "first love" with this brand, Eicher is going to lose the craze. It will again become a niche player like it used to be a decade back.
2. Earlier generation has slowly moved to four wheelers. Hence similar demand cant continue in future..

#Eicher #Eichermotors

Update: August 1st:
https://www.moneycontrol.com/news/business/markets/eicher-motors-q1-profit-plunges-22-to-rs-452-cr-subdued-volume-drags-revenue-6-4273821.html


Disclaimer: Please note that these are personal views of the author. All investors are advised to conduct their own independent research into individual stocks or industries before making any decision. In addition, investors are advised that past stock performance is not indicative of future price action.

How to ride the election result tide?

In last couple of months FIIs have been a net buyer in Indian equity market. There are multiple factors including the Indian growth story backed by a stable government, which has led to this inflow. May 23rd results will definitely have an impact on capital inflow(FII and FDI) which by and large one of the critical factor in deciding the future course. Between the two key political group(UPA and NDA), there is no major economic policy deviation however its better to review your portfolio.

A broad level categorization based cash position of investors:

1. All in stocks- This category belongs to those who are already invested with no cash/minimal cash in hand. Is your stock directly getting impacted due to change in government? If the answer is yes then you need to slowly reduce the exposure to minimize the risk. There will be short term selling pressure on these stocks. Its better to switch to blue chip will have minimal impact as compared to small and mid cap. With the current bull run, a short term correction is expected post 23rd May as the market may have factored a stable government. Booking partial profit/keeping some cash is not a bad idea. Market will provide further opportunities.
2. Fifty-Fifty: You fall under the cautious investor group and are waiting for the market to correct for further investment. Again, you can also revisit the portfolio as stated in point 1. Its better to continue your cash position and look for stocks which are looking good post Q4.
3. All in cash: You fall under the most risk averse lot who expect the worst on Election result day. Keep looking for value buys and stocks which are not going to get impacted by government change.

Disclaimer: Please note that these are personal views of the author. All investors are advised to conduct their own independent research into individual stocks or industries before making any decision. In addition, investors are advised that past stock performance is not indicative of future price action.

Do we deserve this?

Multi-lane expressways have become a reality. Next generation, powerful two and four wheelers are very comfortable and have considerably reduced the commuting time.

There was been increase in road accidents as well. Reasons are multi-fold and cannot be attributed to any one aspect:

·         Lack of discipline: Majority of us don’t follow any lanes or traffic rules. With these swanky highways, any small mistake can lead to major accident. Speedy vehicles don’t get much time to react. With more and more high power vehicles coming on road, this is only adding upto the problem.

·         Good roads: Its surprising but I feel this is another reason. Do we deserve such roads when we don’t care about traffic rules and road safety. Airbag is still considered a waste of money and available only in high end versions. Helmets on head is due to fear of paying fines. Bad, narrow roads were blessing in disguise. Due to congestion on narrow lanes, every vehicle will struggle at 30-40 KMPH hence chance of accident and resulting impact was less as compared to multi-lane expressways.

Machines and Roads have developed but we as a human need to match up. We need to be more disciplined and take road safety as top most priority. Otherwise, this boon will remain a bane as far as road causalities are considered.