Markets Update

Increasing covid-19 cases and gloomy outlook predicted by the US Fed pulled markets down this week.

The Bigger Picture

• The US Fed officials indicated that they expected the unemployment rate at 9.3% towards the end of 2020 and remain elevated for years – expected to be at 5.5% in 2022
• Output is expected to be 6.5% lower at the end of this year than it was in the final quarter of 2019
• Meanwhile covid-19 related deaths in India are nearing the 9000 mark with 8884 cases reported as of Saturday
• With about 3.08 lakh cases, India now is ranked 4th in the world in terms of coronavirus cases, after the US, Brazil and Russia

Matter of Fact

It was the year 1952, and among the myriad of problems faced by our then Prime Minister, Jawarlal Nehru was faced with one problem that particularly stood out. He was concerned that Indian women were spending a lot of precious foreign exchange on beauty products! Yes, you read that right – beauty products!

The PM imposed a ban on imports of beauty products. That wasn’t how it was going to end, obviously! So after a huge protest by Indian women, the PM requested J.R.D. Tata to manufacture them in India. Subsequently, the famous cosmetics brand we know today as Lakmé was formed!

Inside smallcase

Rebalance Updates coming soon..

The research team works hard to ensure that the idea that you invested in via a smallcase remains intact. This requires the team to periodically revisit the stocks/ETFs and their weightages in a particular smallcase to ensure that they appropriately align the smallcase with its goals.

• Thematic, strategy-based and sectoral smallcases with a quarterly schedule will be rebalanced on June 18, 2020
• Rebalancing takes into account fundamental factors, company updates, etc. to objectively narrow down on the right stocks/ETFs & their weightage
• This is done to ensure the stocks & weights in the smallcase continue to reflect the underlying theme/idea

If you haven’t already invested in a smallcase, this is your chance to add one to your portfolio as they’re freshly rebalanced and ready to work towards the ideas that you believe in. Read more on rebalancing here.

Through The Looking Glass

Through the Looking Glass is a multi-part series that explores trending topics in business, finance and the impact of COVID-19 on the economy. The series features insights from leaders across various industries on how they’re dealing with the current crisis and other major developments shaping their respective industries.

The recent chemistry between big tech and Indian telecom giants could have huge implications on the Indian economy. Sajith Pai – Director, Blume Ventures, pens down his thoughts on the famous Facebook – Jio deal. Read it here.

Siddhartha Rastogi, a veteran of the capital markets, explores the possible impact of Covid-19 on business and life at large. In part 2, he takes a deep dive into how the pandemic has affected the capital markets. Read part 1 and part 2.

Rajesh Yabaji – CEO, Blackbuck pens down the impact that Covid-19 has had on the logistics and trucking industry. Along with that, he highlights how the logistics industry is key in India’s journey of becoming an advanced nation. Take a look here.