Euro lockdowns weigh heavy on markets

The Big Picture

• The government fiscal deficit is the difference between government expenses and revenues. India’s fiscal deficit widened to ₹9.14 lakh crore in April-September 2020 from ₹6.56 lakh crore in the corresponding period of the previous fiscal year. That was equivalent to 114.8% of the government’s budget estimate for this financial year, much higher than 92.6% a year earlier.
• Infrastructure output in India dropped 0.8% in September of 2020 as compared to the same period last year, following a 7.3% drop in August. It is the smallest decline in 7 straight months of falling output.

smallcase Rationales

The Affordable Housing Opportunity

All of us have the desire and some degree of obsession with owning a house. People associate owning houses as security and owning and living in your own house is one of the key goals many of us have in our lives. While whether this desire makes economic sense is a discussion for another time, we spend a lot of time and energy is trying to achieve the feat of having our own nameplate outside our house.

While that might be true, buying a house is an expensive affair – even more so for lower-income groups. With that in mind, the government launched the Pradhan Mantri Awas Yojana (PMAY) in 2015. The PMAY started with an objective of building 2 crore (20 million) affordable houses over a period of 7 years for the lower-income segment. This opportunity is set to benefit a number of companies that will be involved in giving the government’s goal some shape. To see how you can benefit from such developments, dive into this interesting piece.

Ok, so?

Rise of Big Pharma in India

India has long been a powerful player in pharma manufacturing. But, more importantly, it’s India’s socio-economic strengths that provide even greater grounds for optimism when it comes to the potential of the pharma industry. Global players cannot afford to ignore India. In fact, the rise of big pharma in India is happening right now.

Inside smallcase

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.

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