The Indian stock markets ended the week in red as benchmark indices witnessed selling pressure for 4 days of the 5-day trading week. Global market sentiments were the main driver of stock markets at home. Chinese tech giants have seen a massive selloff.
Moreover, virus resurgence in parts of Europe and dwindling economic fundamentals in other parts of the world weighed in on investor sentiment.
Quote of the week
"A business that makes nothing but money is a poor business." ~ Henry Ford Click To Tweet
A business that makes nothing but money is a poor business.Henry Ford
The Big Picture
- India’s fiscal deficit, which is the difference between government revenues and expenses, narrowed to ₹2.74 lakh crores in April-June 2021-22 from ₹6.62 lakh crore in the corresponding period of the previous fiscal year.
- India’s infrastructure output, which measures the performance of industries like steel, coal, natural gas, electricity, etc. rose by 8.9% year-on-year in June 2021.
- As per RBI data, the value of commercial bank deposits and commercial bank loans grew by 10.7% and 6.5% respectively in the fortnight ended July 16th, 2021.
- Foreign Exchange Reserves in India stood at $611.15 billion on July 23rd from $612.73 billion in the previous week.
smallcase of the week
Investing in the biggest US and Indian companies!
Large-cap investing has generally been rewarding over the long term, especially for new and budding investors. This was the idea behind the Global Opportunities smallcase.
This smallcase invests in the top 100 companies in the US and India via ETFs. The top 100 companies in the US also gives exposure to the global technology giants that have been at the forefront of innovation and disruption. Read more about this smallcase, here.
SIPs with smallcase
SIP stands for Systematic Investment Plan. As the name suggests, it helps the investor allocate funds in a smart and disciplined manner. Timing the markets is a difficult task, but SIP eliminates that worry. With SIP, you can invest fixed amounts at regular intervals. You, then, stand to have an advantage over market volatility and do not need to monitor the markets constantly.
Buy more when the price is low, less when the price is high. If on the SIP date, the stock price is high, you will be able to buy a lesser number of shares. And vice versa. This ensures that you invest more at lower prices and less at higher prices, and hence your overall cost of acquisition gets averaged out. Try out investing with SIPs in smallcases for passive, long-term wealth creation. Read more about SIPs, here.
And that’s all for this week. Take care, and happy investing! 🙂