Market Insights & Investment Strategy- November 1 – 2024
Nifty 24311 and Sensex 79764*
Market Commentary
Markets took a knockoff in October by falling 6.22%. Maximum drop came in Autos which fell more than 13%, followed by Oil & Gas, Consumer Durables, and MNC sectors.
There were FIIs selling to the tune of 1.11 lakh crores in October month with Year Till Date selling of 2.39 lakh crores so far.
Multiple reasons have been attributed to this fall; prominent amongst them had been- FIIs outflow of money / Rich Valuations / China Govt stimulus which has made China attract foreign flows out of India as well as incremental fresh flows
Well, for people who are still waiting on the sidelines- this drop has come out as an opportunity to increase gradual exposure to the Indian market and for those who have been enjoying the bull ride – it is time to somber down on future expectations and become cautious with taking bets in markets.
The NIfty 50 has key support at 23700 levels and falling below it can aggravate towards 23200. Even if a bounce comes it will be important to see if that bounce is sustainable or not.
What we are putting across to clients is to start with SIPs and instead of Lumpsum have a systematic approach towards investing into funds that are in sync with their risk tolerance levels and time horizon. Stay away from active trading and leveraged calls.
Funds Category Choice-
- Debt Funds for short-term parking of 1 month – 3 months time frame.
- Hybrid Funds- Multi Asset Funds and Balanced Advantage Fund for parking of funds with a time horizon of 12 months to 3 years
- SIPs in Mid Cap/Small Cap Funds for Long term.
Execution Style
Clients looking to infuse fresh funds into the portfolio can consider moving through the Systematic Transfer Plan (STP) route instead of lump sums and also be open to the idea of executing deployment through switches if markets are given an opportunity to enter.
In case you have any queries over your existing investments made through us or have any service-related queries. Please let us know and we would be glad to assist!